Thursday, 30 October 2025
In mid-April 2025, real estate investor and developer Hagag Development Europe entered into a new strategic partnership with Niro Investment Group, the owner of Corinthia Grand Hotel du Boulevard and Bucharest Grand Hotel, acquiring a 50% stake in a mixed-use property located near Herăstrău Park, at 23–25 Ghețarilor Street. The deal, valued at €5 million, was structured based on the building’s annual rental income, expected yield, and current market conditions. Under the terms of the agreement, Hagag also assumed exclusive operational and management responsibilities for the entire property.
As of November 1, the building—formerly the Unicredit headquarters—officially re-entered the commercial market under the developer’s new brand identity: H Herăstrău Park. The move marks another step in Hagag’s broader strategy to grow its portfolio of mixed-use assets in Bucharest while revitalising existing stock to modern standards.
With a gross built area of approximately 10,000 square metres (including 6,800 sq m of leasable retail and office space and around 100 parking spaces), H Herăstrău Park is undergoing a targeted light refurbishment aimed at improving energy performance and overall sustainability.
“The building was originally delivered in 2005, so our approach focuses on retrofitting rather than rebuilding,” explained Andreea Dumitru, Chief Marketing Officer at Hagag Development Europe, in an interview with CIJ EUROPE. “Retrofitting existing buildings is a vital strategy for decarbonising the built environment and achieving net-zero targets. H Herăstrău Park is being renewed and upgraded to deliver higher energy efficiency and a reduced carbon footprint.”
The property’s façade—composed of roughly 30% ventilated ceramic panels and 70% curtain wall glass—has been largely preserved, requiring only selective replacement of damaged tiles, glass, seals, and gaskets. The mechanical, electrical, and plumbing systems have been fully replaced with Class A standard installations. Although Hagag is not primarily focused on formal certifications, Ciobanu confirmed that the company is considering green certification and photovoltaic panel installation to further optimise operational efficiency.
While the current partnership with Niro Investment Group covers only the 50% stake acquired this year, Hagag has no plans to buy out the remaining share. Instead, the developer is concentrating on the building’s repositioning and lease-up to strengthen its income profile within the company’s expanding commercial division.
Beyond this project, Hagag’s broader development strategy remains consistent: to enhance mixed-use functionality across its Bucharest portfolio. “All our projects—whether residential or commercial—include complementary functions,” Dumitru said. “Examples such as H Victoriei 109, H Tudor Arghezi 21, and H Victoriei 139 feature retail components, while H Pipera Lake, H East Residence, and H Știrbei Palace integrate hospitality, retail, and lifestyle elements.”
Although the company is not currently seeking new acquisitions, it continues to hold a land bank for future development. Dumitru noted that Hagag’s focus remains on “high-value repositioning” of central and semi-central Bucharest properties that can be revitalised into modern, sustainable assets.
Through projects like H Herăstrău Park, Hagag Development Europe is positioning itself as a key player in Bucharest’s next stage of urban regeneration, combining investment with sustainability-driven refurbishment. The company’s growing portfolio reflects a long-term vision to transform underutilised buildings into dynamic mixed-use environments aligned with international ESG trends—reinforcing Bucharest’s evolving status as a competitive and livable European capital.
© 2025 cij.world
