News Article Zeus Capital Partners LP sells Sofia office building
by Ákos Budai | Investment

Zeus Capital Partners LP, a private equity fund managed by Zeus Capital Management has sold Kambanite Business Centre (KBC), located in Sofia, Bulgaria, to a group of undisclosed European institutional investors. This is the Fund’s largest portfolio investment, which was acquired at the end of 2011.

KBC is Class A modern office building located in the broader centre of Sofia at an established business district opposite Business Park Sofia. The property comprises approximately 15,150 sqm office space and about 220 parking spaces. It received Gold LEED Certification for energy efficiency in March 2015.  The property is fully leased and the anchor tenant is Hewlett Packard.
 
Zeus Capital Partners LP acquired the property from Bulgarian Real Estate Fund in November 2011. The Fund acquired the asset for €23 million and the transaction was financed by UniCredit Bulbank.

“The sale of Kambanite Business Centre represents the first investment exit from our debut real estate fund dedicated for Southeastern Europe. KBC is considered one of the best investment properties in Sofia due to its location, building quality and tenant profile - factors that contributed to a successful and swift deal closing. We are pleased to divest the property, which has performed remarkably well for our investors and we look forward to continuing our Fund’s exit program both in Bulgaria and in Romania.” said Demetris Panayi, Chief Financial Officer at Zeus Capital Management.
 
The property was acquired by a group of undisclosed European institutional investors, while UniCredit Bulbank continues to be engaged as the financing bank. Zeus Capital Management will continue to manage the property post-acquisition, under its newly-launched commercial real estate platform dedicated for CEE and SEE.
 
“Since its acquisition, we fully leased the building, improved the property’s efficiency and sustainability and enhanced the services provided to the anchor tenant. Thus, we were able to renew our leases and increase the asset’s attractiveness, maximizing our investment returns on exit,” said Lila Pateraki, Director of Investments at Zeus Capital Management.
 
KBC is the second prime office building that is added to the ZEECP platform. In March 2016, Zeus acquired Váci Corner Offices, located in Budapest’s Váci Corridor, from Slovakian based developer HB Reavis Group.