The Black Sea Trade and Development Bank (BSTDB) has extended a EUR 50 million loan to One United Tower S.A. to facilitate the development of business infrastructure in Romania, a press release issued by the bank informs.
The purpose of the BSTDB loan is to finance the development costs of “One Tower”, a green office building making part of the newly developed One Floreasca City mixed-use complex located on a formerly abandoned industrial site in the Romanian capital. The total cost of the project is EUR 54 million. Part of the loan will be used to refinance project costs incurred so far and funded by the shareholders. The “One Tower” building, due for inauguration in the first half of the year, is part of a larger urban rejuvenation project involving also a residential component and aiming to get WELL global certification for people health and well-being. It will also receive LEED Platinum-4 green certification, the world’s strictest environmental standard for buildings. The deal was served by Dentons as its external legal counsel.
“This is a major step in the group’s business strategy and also a confirmation granted by an international financial institution after a process of thorough due diligence and verification of creditworthiness in several segments,” a press release issued by One United Properties states.
The EUR 50 million financing obtained by One United Properties is an investment loan that will cover the development costs of One Tower “green” office building. The financing is granted for a period of 11 years and will be used in full by the end of the year and subsequently reimbursed until maturity. The financing process was a complex one and subject to the strict BSTDB’s evaluation rules. The capital will be used to cover the development costs for One Tower office building, part of One Floreasca City mixed-use complex, an urban regeneration initiative developed by One United Properties in the heart of Floreasca Quarter and which also includes a residential component, One Mircea Eliade. One Tower office building has the most high-performance LEED pre-certification on the Romanian market, LEED v4 Core & Shell at Platinum level and is ready to be WELL HEALTH AND SAFETY certified, being one of the first healthy buildings in Romania.
“We are glad that through this operation we receive the vote of confidence of an important international financial institution, a confirmation of our efforts to develop sustainable real estate projects at international standards for the Romanian market. It is an important action and at the same time a premiere for One group, which has so far resorted to other financing solutions. The capital will be used to complete the investment and refinance past construction costs of One Tower office building”, says Andrei Diaconescu, co-founder of One United Properties.
”BSTDB is delighted to support this project representing a major investment in the Romanian construction sector amidst the pandemic, which will enhance the offer of quality business infrastructure in Bucharest. We are particularly pleased to note that our client has been repeatedly awarded for the sustainability of their projects, something we seek to support and promote as a development institution”, said Dmitry Pankin, BSTDB President.