Globe Trade Center has signed an agreement to sell its office portfolio in Belgrade to Hungarian investor Indotek for 267.6 million euros.
The transaction, which involves eleven buildings in five business parks with a combined area of 122,175 m², is expected to close in the third quarter of 2021. The properties include Green Heart, FortyOne, Belgrade Business Center, 19 Avenue and GTC House, each being located in the district of New Belgrade. According to GTC, once completed, the deal will be one of the largest in the EEC market for the past five years. The acquisition price is 2 million euros higher than the book value of the buildings at the end of last year.
The sale of eleven high-end office buildings in Belgrade is a bold move that will allow us to complete our development cycle in Serbia and open a fundamentally different chapter in this market. The sale of the Serbian portfolio could not have been more timely, as we are currently redefining our market strategy and advancing our operations to be more sustainable and sustainable. This is a benchmark transaction in Belgrade, demonstrating post-Covid liquidity. The sale of some of our assets and the relocation of free cash flow for the development of brand new and ambitious projects in Serbia and other Central and Eastern European markets is really an exit on a high note, which will make us moving forward.
Yovav Carmi, Chairman of the Board of GTC
GTC is represented by Dentons and ZSP Legal for this transaction, while Indotek is represented by the law firms BDK Advokati and Lakatos Köves and Partners.
Indotek Group has been present in its domestic market for almost 25 years. In the last decade, the company has also started to expand outside of Hungary, which has enabled the Indotek group to be active in ten countries today. We have been looking for the opportunity to enter the Serbian market for a long time and with the ongoing transaction we are able to significantly strengthen our position in the region. I am particularly proud that our first transaction in Serbia makes us one of the most dominant players in the office market in Belgrade.
Dániel Jellinek, Founder and CEO of Indotek Group
GTC recently invested 160 million euros in the acquisition of two office buildings in Budapest: the local headquarters of Ericsson and Siemens Evosoft. Its pipeline office projects in the country include GTC X and Project Blaze.