July 26 (SeeNews) - Real estate developer AFI Europe said that it has received a notice from DIY retailer Dedeman saying that it would buy three of its AFI Park five office buildings in the capital Bucharest.
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.
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"AFI Europe announces that it has received information from the potential buyer of the office buildings known as AFI Park 4-5, informing it of its intention not to continue the agreement provided in the letter of intent. AFI Park sale process for buildings 1-3 continues its course," AFI Europe said in a statement filed with the Tel Aviv bourse on Tuesday.
However, AFI added that the parties had agreed that the talks on buildings 4 and 5 sale could continue.
Local media estimate that the transaction for all five buildings would add up to 164 million euro ($191 million).
AFI Europe, a subsidiary of AFI Properties, is one of the leading real estate development, management and investment companies, which is operating in Central and Eastern Europe since 1997.
Located in the western part of Bucharest, the five office buildings of AFI Park comprise of a 70,000 sqm gross letable area and are close to 100% occupancy rate.
Dedeman, founded in 1992 by two Romanian entrepreneurs, currently has 9,800 employees in 47 stores across the country.
Dedeman founders, Dragos Paval and Adrian Paval, are estimated to own a fortune of 920-950 million euro, according to the Top 300 Wealthiest Men in Romania 2016 ranking made by Romanian magazine Capital.
($= 0.8579 euro)
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