August 7 (SeeNews) - Real estate developer AFI Europe and Romanian DIY retailer Dedeman have agreed to cancel the sale transaction of AFI Park office buildings 1-3 in the country's capital Bucharest, AFI Europe said.
"Following the announcement a few days from Dedeman of its intention not to advance with the purchase of office building AFI Park 4&5, which were actually not under a binding agreement, both parties have agreed to retreat and to cancel also the purchase agreement of AFI Park's 1-3, in order to enable AFI Europe to continue and operate all the buildings in the park as a complete office complex," AFI Europe said in a press release on Sunday.
You can subscribe to our M&A newsletter here
Last month, AFI Europe received a notice from Dedeman saying that the DIY retailer would buy only three of AFI Park's five office buildings.
On June 1, Dedeman's owners decided to tap into the real-estate sector and signed a pre-contract to buy three office buildings from AFI Europe, with the reserved option to also buy the other two.
According to local media reports, the estimated value of the transaction for all five buildings would have been as high as 164 million euro ($191 million).
AFI Europe, a subsidiary of AFI Properties, is one of the leading real estate development, management and investment companies, which is operating in Central and Eastern Europe since 1997.
Located in the western part of Bucharest, the five office buildings of AFI Park comprise a fully leased gross lettable area of 70,000 sq m.
Dedeman, founded in 1992 by two Romanian entrepreneurs, currently has 9,800 employees in 47 stores across the country.
($= 0.8419 euro)
Dedeman SRL is among the biggest companies in SEE. You can download our SEE Top 100 ranking
here or subscribe to our free Top 100 newsletter
here