Eurobank Properties buys Romanian company
03 September 2007
Eurobank Properties Real Estate Investment Company (Eurobank Properties REIC), has entered into a preliminary contract to purchase, subject to certain conditions, a Romanian joint stock company, that owns a retail building under construction. Upon completion, the building will have a gross leasable area of approximately 8,950 square meters.
The property is located in Iasi, 113 Tudor Vladimirescu Blvd and upon completion will be a retail building already leased to SC Praktiker Romania SRL through a guaranteed 15 year lease agreement. The lessor grants the lessee three options of 5 years each for renewal of the lease agreement under the same conditions.
The price for the acquisition of 99.99% of the shares of the Romanian joint stock company that owns the retail building has been agreed at euro 14.5 million, which was calculated (for the purpose of the sale price) on a debt free basis. Eurobank Properties REIC has made an advance payment of euro 2.9 million and the remaining price will be paid upon completion of all construction works, undertaken by the sellers, final delivery to the tenant and signing of the share purchase agreement.
The sellers are required to complete the construction of the retail building in compliance with agreed technical specifications and deliver the property to the tenant, which is expected to take place by 15th December 2007.
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