Star Invest Imobiliare has signed a non-binding letter of intent to acquire a Bucharest office building valued at about 12 million euros, a deal that would nearly match the Romanian REIT’s market capitalization and deepen its shift into income-producing real estate.
Star Invest Imobiliare to buy Bucharest office building
The transaction matters because it would add a fully leased office asset in central-north Bucharest to a company that only recently started building a rental portfolio. For investors, that means a clearer path toward recurring cash flow, but also a heavier reliance on acquisition execution, financing and property-market conditions.
The building is about 5,000 square meters and has tenants from multiple sectors, with Star Invest targeting full occupancy. The acquisition is expected to be funded through internal resources, including a new capital increase, and bank debt, after the company had no borrowings as of June 30.
That financing structure is important. Star Invest raised 48 million lei, or about 9 million euros, in the spring in a capital increase at 0.24 lei per share, and used those proceeds for Polonă 68 Business Center, its first income-generating building, which it took over on July 30. The new deal would expand that strategy and could quickly reshape the REIT’s earnings profile if it closes.
The company is also coming off a first-half net loss of 3 million lei, driven by the sale of all previously held assets, including a Sector 1 land plot sold for 3.25 million euros. Management said the loss reflected a book value adjustment versus the land’s last appraisal, underscoring how asset sales and revaluations can swing reported results even as the portfolio is reset.
Star Invest shares rose 1.5% on Monday to 0.264 lei, with the stock still trading around a valuation that makes the planned 12 million euro purchase significant relative to its size. The key next catalyst is due diligence, financing approval and shareholder or regulatory clearances, which will determine whether the REIT can keep scaling its portfolio without straining the balance sheet.
| Entity | Gains | Losses |
|---|---|---|
| Star Invest Imobiliare | ▲Larger income-producing portfolio | ▼Execution and financing risk |
| Existing shareholders | ▲Asset growth potential | ▼Dilution from capital increase |
| Sellers of the office asset | ▲Cash exit at 12 million euros | ▼Future rental upside |
| Bank lenders | ▲New lending opportunity | ▼Exposure to a young REIT |
