Hungarian investment manager Indotek Group has inked a deal for the entire Belgrade office portfolio of real estate investor-developer Globe Trade Centre (GTC).
The proposed deal volume is €267.6 mln, exceeding the book value of GTC’s Serbia portfolio as of 31 December 2020 by €2 mln.
The agreement covers the sale of 11 buildings within five business parks, representing a total of 122,175 m2 gross leasable area. The properties are located in the New Belgrade district of the Serbian capital and distinguished by high occupancy rates.
Once the deal closes in the third quarter of this year, it will become one of the largest real estate transactions in CEE over the last five years.
GTC said that the deal was motivated by plans to optimise its operations in Serbia. The properties are located in the business parks of Green Heart, FortyOne, Belgrade Business Center, 19 Avenue and GTC House.
Yovav Carmi, president of the management board of GTC, commented: 'The sale of 11 premium class office buildings in Belgrade is a bold move which will allow us to complete our development cycle in Serbia and start a fundamentally different chapter in this market.
'This is a benchmark transaction in Belgrade, demonstrating liquidity post-Covid. Selling some of our assets and relocating the free cash flow for the development of brand-new, ambitious projects in Serbia and other markets of CEE is truly an "exit on a strong note", which will drive us forward.'
GTC recently invested €160 mln in two office properties in Budapest: the Ericsson Headquarters and the Siemens Evosoft Headquarters. The firm is also planning new developments in the country, including GTC X and Project Blaze.
Meanwhile, last month Indotek completed the €72 mln acquisition of four office buildings in Warsaw from Immofinanz, as it continues to target expansion beyond Hungary.
Dániel Jellinek, founder and CEO of Indotek Group, said: 'Indotek Group has been present in its domestic market for almost 25 years. In the last decade the company also started to expand outside of Hungary, resulting in Indotek Group being active in 10 countries today.
'We have been looking for the opportunity to enter the Serbian market for a long time, and with the current 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 participants in the Belgrade office market.'
GTC were represented by Dentons and ZSP Legal, while Indotek Group worked with lawfirms Lakatos Köves and partners as well as BDK Advokati.