X-ray of Green Court Bucharest Office Complex

Location: North of Bucharest, 12 Gara Herastrau Street

Description:

•   3 modern office buildings
• 12 floors above the ground
•   52,000 sqm of leasable space
• 837 underground parking spaces

Developer: Skanska Development Romania

Infrastructure and structure contractor for buildings A & B: Octagon Contracting & Engineering under Skanska Construction Romania

Developer’s testimonial about the contractor:

“Skanska Construction appointed Octagon as construction partner for foundation and structural works on the Green Court Bucharest.  The cooperation was excellent and Octagon performed the works professionally and diligently meeting all of our expectations in terms of health and safety, quality and delivery time.” says Richard Burleigh, Country Manager, Skanska Construction Romania.

Biggest challenges faced by the contractor:

“The biggest challenge in the execution of this project was meeting the deadline, which was very tight.  But despite the schedule constraints, which were also amplified by technical issues that are unavoidable in any project, we managed to focus on our main targets and deliver the works on time.“ says Max Ene- OCTAGON’s  project manager for Green Court Bucharest.

Construction works performed by OCTAGON:

• Concrete works for infrastructure and superstructure of building A (3B+ GF+ 11F)
• Excavation;
• Diaphragm walls D 600;
• Anchorages;
•  Infrastructure works for building B;
• Concrete works for the superstructure of building B (3B + GF+ 11F)

GREEN features:

• energy efficient façade with high performance which reduces solar heat gains, the building’s heating up being significantly limited;
• natural daylight- over 75% of the building space has access to the daylight. Automatic lighting control system adjusts the lights according to the intensity of outside light resulting into lower energy consumption;
• containers for segregated waste;
•  solar panels- located on the roof of the building, used for domestic hot water;
• electrical plug- in for cars

Estimated benefits:

•  Lower utility bills- 50% less water consumed
• A healthier, more productive workplace-  30% more fresh air in the office
• More efficient lighting- 32% less energy consumed

OCTAGON’s staff involved in the construction of buildings A & B: 160 people.

The Advisers/ Knight Frank: Office take- up in Bucharest up by 12% in H 1 2014. First building of Hermes Business Campus, delivered by OCTAGON, fully leased

Office take-up in Bucharest amounted to 132,000 sqm in H1 2014, up by 12% year-on-year, according to the latest survey of The Advisers/ Knight Frank. Pre- leases and relocations each accounted for 29% of leasing deals, while renewals represented another 20%. Notably, firm expansions and new market entries are on the rise- representing 22% of activity- supported by strengthening economic conditions.  The Romanian economy powered ahead in 2013, with GDP growth exceeding expectations, reaching 3.5%. Growth of approximately 2.5% is forecast for 2014. Business sentiment continues to improve, with more international firms considering Bucharest as a major outsourcing location in Central and Eastern Europe.

Green Court Bucharest- building A

Occupiers in the IT & C sector were the most active players in the first half of 2014, with telecommunication providers Vodafone and Orange signing the two largest deals. Vodafone agreed to prelease 16,000 sqm in the Bucharest One project with the option to further expand, while Orange leased 13,700 sqm in Phase one of Skanska’s Green Court, delivered by OCTAGON CONTRACTING & ENGINEERING in 2013. OCTAGON also built the superstructure of the second building of Green Court office complex, located in northern Bucharest on Gara Herastrau Street.

Another A class office development built by OCTAGON, which was fully leased, is the first building of Hermes Business Campus, stretching over 37,000 sqm and rising eight floors above the ground. The building also has 4 basements, one ground floor and one technical floor. OCTAGON has just finished building the infrastructure of the second building of the project and is now working on the structure.

Hermes Business Campus- building B

Bucharest has recently seen a rise in development activity, with a total of nine new and refurbished schemes completed in H 1 2014, providing 120,000 sqm of class A space. The development pipeline has also expanded and currently stands at 200,000 sqm; of this, 55,000 sqm is expected to cover over H2 2014.

Despite the increase in new supply, the average vacancy rate for class A and B stock fell by 6 percentage points year-on-year to 17.4%. This is largely on the back of significant lettings at completed buildings, including the recently delivered Floreasca Park, which was fully leased by The Advisers/ Knight Frank.

Over H 1 2014, headline rents across all major submarkets remained stable. While headline prime office rents are expected to remain in the range of 18- 18.5 US per sqm per month, over the second half of the year, incentives are likely to harden slightly.

Hermes Business Campus- foundation works on building C

Investment market

The first half of 2014 saw a marked increase in property investment activity, with total volumes reaching a remarkable 460 million USD. Investment volumes in 2014 already exceed those of 2013 and, with several prime assets on the  market, further major transactions are expected to be completed in the second half of the year. 2014 is on the track to surpass the total amount transacted over the last two years, potentially breaking 2010’s record of 543 million USD.

While transaction activity was dominated by domestic restructuring deals, investment demand remains robust, with both domestic and international effort focused on office and retail assets in Bucharest.

While transaction activity was dominated by domestic restructuring deals, investment demand remains robust, with both domestic and international interest largely focused on office and retail assets in Bucharest.

The largest deal in H 1 2014 saw investment fund Globalworth purchase the Upground complex in Pipera from Deutsche Bank’s RREEF for some 200 million Euro. The deal included the sale of a residential compound, as well as both BOC and BOB towers, for 110 million and 42 million Euro respectively.

While the current strong economic backdrop is attracting greater investor interest, the limited availability of prime office stock across major markets has proven to be a hindrance to activity. However, this is set to change, as Bucharest’s stock of class A buildings continues to increase, helping to improve office market conditions and offering a wide range of opportunities to international investors.

As a result, prime office yields in Bucharest have seen moderate compression over the last twelve months, hardening by 25 bps to stand at 8.00%. Sustained investment demand over the second half of the year is likely to drive prime yields below 8.00%.

OCTAGON CONTRACTING & ENGINEERING

More information HERE

Tel: (+4) 021 232 39 20

DTZ: Modern office space in Bucharest reaches 2 mil sqm. OCTAGON to deliver two more buildings in 2014

Modern office space stock in Bucharest reached 2.114 million sqm, at the end of June, around 3% of this area accounting for new office space deliveries. In 2014, 132,000 sqm of office spaces will be delivered, approximately 60% of this area being pre-leased. In the first half of the year five office buildings were delivered, with a total area of 68,500 sqm, most of them being located in the west of the capital.

Hermes Business Campus

OCTAGON CONTRACTING & ENGINEERING has been one of the main office space constructors in the past two years. The company has started the year by delivering building B of the office complex Hermes Business Campus (5- 7 Dimitrie Pompeiu Blvd.), were OCTAGON was general contractor. By the end of 2014 OCTAGON will complete another two office projects: PC Business Center (7- 9 Bucharest- Ploiesti Road), where the company performed infrastructure works and is currently performing superstructure works consisting in concrete superstructure works (encasing, reinforcement, concreting) and metal structure works at building B of the complex Green Court Bucharest (2- 4 Garii Herastrau St).

Office building vacancy rate in Bucharest has slightly declined this year to 15.7%, 330,000 sqm being vacant, although a record rental volume was registered in the first six months. Most of the rental volume was generated especially by relocations, according to real estate consultants DTZ Echinox. Vacancy rate dropped by one percent quarter on quarter, reaching 15.7% at the end of H 1 2014. This is a 0.8 per cent

PC Business Center

decline on the same period of last year, when the vacancy rate was 16.5%.

Right now there are 333,000 sqm of free office spaces in Bucharest, over 30% of them being located in Pipera. Yet, the highest occupancy rate decline quarter on quarter was registered in Pipera, against the other areas in Bucharest - 4%, at the end of the first semester. The vacancy rate in Pipera is now 21%. In Pipera Sud area (Dimitrie Pompeiu St.) the vacancy rate is 8.5%, while in CBD (the central business area) and in west, the vacancy rates stands at 8%, reads a DTZ Echinox press release.

The center- north area has a vacancy rate of 16%, while Barbu Văcărescu – Floreasca area, with a 254,000 sqm stock, reached a vacancy rate of 14% at the end of the first semester.

Green Court Bucharest

The total volume of rented office spaces reached 108,000 sqm in the first half of the year, 25% higher than the volume reported for the same period of 2013. This is the highest rental volume registered within a semester, since 2008, without taking into account the investment made in 2010 by Petrom in its own office building.

Relocation transactions keep dominating the market, accounting for 72% of the total rental volume. New demand – expansions and new comers on the construction market – is 40% above the value registered in the same period of last year and accounts for 28% of the total rental volume.

Prime rents remained stable in the first six months of the year, with variations from 16-18 euro/sqm/month in the central business area, to 15-17 euro/sqm/month in center- north, declining to 12-15 euro/sqm/month in semi- central areas, and to 9 - 12 euro/sqm/month on the outskirts.

For more information click HERE. 

OCTAGON CONTRACTING & ENGINEERING

Phone: (+4)021.232.39.20

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OCTAGON delivers special foundation and infrastructure works on PC Business Center

OCTAGON delivered the special foundation and infrastructure works on the office project P. C. Business Center, located in the north of Bucharest, on 7-9 A Bucharest- Ploiesti Road.  The company performed the following works: diaphragm walls D 600, bored piles D 620- h = 12 m, crown beam, dewatering system, infrastructure- raft S 2, S 1, underground hydro- insulation and water basin. PC Business Center will have 9 floors.

 As Alexandros Ignatiadis, co-founder and shareholder of Octagon C&E. said: "In the first half of this year we started works on three new projects. A project begun last autumn, on which we are still working, is an office building, PC Business Center".

    

 For more information click HERE.

OCTAGON CONTRACTING & ENGINEERING

Phone: (+4)021.232.39.20

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Skanska secures first tenant in building B of Green Court Bucharest complex, built by OCTAGON

Green Court Bucharest- building B 2

Skanska announced the leasing of the first office space in the second building under construction near the intersection of Barbu Văcărescu-Pipera Road, Capital writes. OCTAGON is the constructor of the building and is currently performing concrete and metal structure works.

Sanofi, one of the biggest medicine producers in the world, that owns Zentiva factory in Bucharest, has rented a space of around 2,200 sqm. The company will move into the new headquarters in June 2015.

Green Court Bucharest- building B 3

„We are currently performing structure works on building B and we will soon begin façade works.” said Marcin Łapiński, the president of Skanska Property Romania.

So far, Skanska has rented approximately 19,000 sqm of the whole Green Court Bucharest Complex. The first building, with a 19,500 sqm area, has been 88% rented by Orange România and Schneider Electric. Building B will have a 18,000 sqm leasable area.

Green Court Bucharest- building B

Building B is the second on the three buildings of the complex. OCTAGON has also delivered building A, where the company performed infrastructure works (diaphragm walls D 600; crown beams; anchors), concrete structure works and superstructure works. Building A has 15 floors. OCTAGON contract for this building has been supplemented with exterior works: construction of access stairs, access ramps for people with disabilities and protection fences.

Green Court Bucharest will have a total leasable area of 52,000 sqm. The complex, developed by Sweedish company Skanska will be LEED Gold certified.