Bostina and Associates - Legal assistance to Unicredit

Bostina and Associates advised UniCredit Tiriac Bank during the contractual negotiations conducted with Bog’Art for the building and rental of a new bank office. UniCredit Tiriac Bank’s goal is to bring all central office operations under the same roof, namely that of a building – no more than 15 storeys high - that Bog’Art will build somewhere close to Expoziţiei Boulevard with funding provided by the Bank. According to information reported in the press the investment will amount to over € 20mn.

Bog’Art has already purchased the necessary land, located at the rear of the CFR2 Hospital, and is to complete the new UniCredit central office by the second quarter of 2012.

Matei Dimitrie Giugariu, Senior Associate in the Banking & Finance team of Bostina and Associates: “The bank will rent the building and will be a sole tenant for a significant length of time; this, plus the fact that the project will be largely funded by the tenant-bank itself marks an innovation for the Romanian market. Bostina and Associates will help UniCredit to negotiate and prepare the contract for the rental of the future bank office and, since Bog’Art will act as landlord, contractor (developer) and lessor at the same time, many of the transaction-related provisions are specific to construction agreements”.

On March the 19th the Bank signed the financing contract for the Bog’Art project and the rental contract for the future building. The rentable surface area might be 15,000 sqm, but the exact figure is to be provided under the building permit. In the wake of the successive mergers of Banca Ţiriac, HVB and UniCredit, several divisions of UniCredit’s central office are currently located in five different buildings across Bucharest.