Globe Trade Center (GTC) has decided to sell its Belgrade portfolio of office buildings to Hungarian investor Indotek Financing Kft. The transaction price is EUR 267.6 million, estimated above the book value of GTC’s portfolio in Serbia as at December 31, 2020 year, the company said. The closing of the contract is scheduled for the third quarter of 2021.
The contract will cover the purchase of 11 office buildings as part of 5 office parks with a total lease area of 122,175 sqm GLA. The office buildings in the New Belgrade district are distinguished by a high occupancy rate. The contract will be finalized in the third quarter of 2021 and will be one of the largest real estate transactions concluded in the last 5 years on the Central and Eastern European market.
The office complexes include Green Heart, FortyOne, Belgrade Business Center, 19 Avenue and GTC House.
“The sale of 11 A-class office buildings in Belgrade is a bold move that will allow us to complete the development cycle in Serbia and start a completely new chapter in this market. It couldn’t have happened at a better time. We are currently in the process of redefining our market strategy and shaping our business. We have to admit that this is a model transaction that proves financial liquidity after the COVID-19 pandemic. Selling some of the older assets and allocating free funds to the development of completely new, ambitious projects in Serbia and other European markets Central and Eastern Europe is a real ‘way out with a strong accent’ that will drive us “- said president Yovav Carmi.
This action will restore balance in the company’s real estate portfolio and focus on higher valued countries, such as Poland or Hungary. In turn, for the Indotek Group it is an opportunity to enter the Serbian market with a strong portfolio of office buildings.
“The Indotek Group has been present on the Hungarian market for almost 25 years. In the last decade, we started our expansion outside Hungary, as a result of which we are now operating in 10 countries. able to significantly strengthen our position in this region. We are particularly proud because the agreement concluded in Serbia makes us one of the most significant players in the Belgrade office market, “said the founder and CEO of Indotek Group Dániel Jellinek.
In the sales process, GTC was represented by Dentons and ZSP Legal, and the buyer, Grupa Indotek, cooperated with Lakatos Köves i Partnerzy and BDK Advokati.
Recently, GTC has invested EUR 160 million in the purchase of two office properties in Budapest: Ericsson Headquarters and Siemens Evosoft Headquarters. In addition, the developer is already planning several more projects, incl. GTC X and Project Blaze in Serbia. The office buildings will be distinguished by modern construction systems and the latest architectural trends in order to meet the most sophisticated requirements of tenants. Both investments will create the foundation for new office buildings.
Source: GTC and ISBnews
