Smartown, the real estate investment group controlled by Israeli billionaire Teddy Sagi, has initiated the liquidation process of its office portfolio in Romania, aiming to sell all assets held in this segment. The core strategy includes the conversion of the Swan Office & Technology Park complex in Pipera into a mixed-use project and the completion of transactions for properties in central Bucharest, amid a broader attempt to exit the local commercial space market.
The group has put the Swan Office complex in Pipera up for sale for approximately EUR 20 million, a price lower than the 2016 acquisition price of EUR 30.3 million. Due to low occupancy, Smartown is preparing to transform the three buildings (24,440 sqm of offices and 4,684 sqm of retail) into a complex featuring apartments, an aparthotel, a school, and medical spaces. Recently, Mercedes-Benz, Maserati, Chery, and Daimler Truck & Bus leased 9,000 sqm in the complex; however, previous major tenants, eMag and Altex, have relocated.
Simultaneously, Smartown agreed to sell the Polonă 68 building to Star Residence Invest for EUR 19 million, a transaction that would generate an 11% yield. The property had been acquired in 2017 for EUR 17 million. Last year, the group finalized the sale of the Dionisie Lupu building to Yellow Tree at an 8.2% yield. Previous withdrawal attempts, including EUR 60 million discussions with Hagag Development Europe in 2022 and an agreement with the Aspen group, did not materialize.
Teddy Sagi, with a fortune estimated by Forbes at EUR 6.17 billion, retains his remaining local assets, which include land in Dorobanți (heritage villas at Dorobanți 16, 18, and Eminescu 27), 5.7 hectares on the shores of Lake Fundeni, and 8 hectares in Popești-Leordeni, suitable for logistics. The billionaire previously obtained significant liquidity by selling stakes in Playtech (EUR 347.64 million in 2016 and EUR 76.48 million in 2018) and the processor SafeCharge (EUR 772.64 million in 2019).
According to consultants from Cushman & Wakefield Echinox, the European real estate market is stabilizing; however, institutional investors are prioritizing mature markets in the Czech Republic and Poland. Romania remains a destination for opportunistic capital, attracted by superior yields, while the industrial and proximity retail sectors are considered the most resilient in the current economic context.
Frequently Asked Questions
What is the new purpose of the Swan Office complex?
The complex will be transformed from an office park into a mixed-use development that will include apartments, an aparthotel, a school, and medical spaces.
Who is the owner of the Smartown group?
The Smartown group is controlled by Israeli billionaire Teddy Sagi, known for founding Playtech and major real estate investments.
Which assets is Teddy Sagi retaining in Romania?
He is retaining heritage villas in the Dorobanți area, a 5.7-hectare plot on the shores of Lake Fundeni, and 8 hectares in Popești-Leordeni.