TC Capital, a local property investment and development company led by Ali Çapa, launches a new investment type for the Bucharest office market. Thus, Hyperion Towers, situated in a strategic position on Pipera Boulevard, becomes the first large scale class A office project to be sold in smaller surfaces, starting from 200 sq. m and with prices that begin from 720 euro per square meter.
This concept is designed to respond to the increasing need of small and medium enterprises for high quality, class A office spaces of smaller dimensions at affordable prices. As Hyperion Towers has a total office surface of 40,000 sq. m, and the first building of the ensemble has 20,000 sq. m, it becomes the first major project to sell office units on a market dominated by leasing, and where the sale transactions consist in whole buildings. Hyperion Towers is currently undergoing a renewal process, which results from a 14 million euro investment.
“At the moment, the local market faces an important challenge consisting in the demand of new or renewed, flexibly sized class A office spaces, where small and medium companies are able to move as soon as possible. These firms are currently underserved and have limited office options in lower quality apartment buildings, old villas or B class office buildings, where the space efficiency and level of quality is lower. Currently, we estimate that approximately 60% of the Small-Medium sized companies located in Bucharest, especially start-ups and entrepreneurial firms, are in great need of high quality office spaces, flexible sized office units at affordable costs,” stated Ali Çapa, CEO of TC Capital.
The concept launched by TC Capital is a pioneer for the large Class-A office building segment in Romania in terms of addressing the whole market with office prices starting from 150,000 Euro, and it has a clear focus on the small and medium sized companies and investors.
The total stock of A&B Class office buildings in Bucharest was of 2.95 million sq. m at the end of the first half (H1) of 2019, with a new supply that amounts circa 128,000 sq. m in comparison to the 28,000 sq. m delivered in H1 2018. For the second half (H2) of 2019 are expected to be completed another 250,000 sq. m. The demand on this segment continued to grow and reached 196,000 sq. m in H1 2019, reflecting a 30% increase compared to the same period of 2018. Despite this strong activity, the smaller investors and the small and medium firms have little to no possibility to buy spaces in a big Class A office project, because these type are sold as a whole building with prices ranging from some millions for smaller buildings, to several tens of millions euro.
Hyperion Towers is an office project that comprises two buildings with a combined surface of 40,000 sq. m gross leasable area Class A office spaces with ample parking capacity. Currently, the complex is undergoing an extended refurbishment process with a total budget of 14 million euro. The renovation works are taking place in two phases with an investment of approximately 7 million euro for each building.
The estimated date of completion for the first building is at the end of 2019, while the second office tower will be completed in the second half of 2020.