A Hungarian company bought 1/8th of Belgrade’s office stock

GTC has signed a sale and purchase agreement for the sale of its standing office portfolio in Belgrade. The transaction concerning 11 buildings in 5 projects of total 122,175 sq m will be closed in Q3 2021.

The sale price is 267.6 mn EUR, 2 mn EUR above the book value. Globe Trade Centre has decided to sell its Belgrade office portfolio to the Hungarian investor Indotek Group. The proposed acquisition price is 267.6 mn euro, exceeding the book value of GTC’s Serbia portfolio as of 31 December 2020. The agreement will cover the sale of 11 buildings within 5 business parks of a total 122,175 sq m GLA with high occupancy rates, located in the New Belgrade district. Once completed in Q3 2021,

the sale will become one of the largest real estate transactions in the last 5 years on the CEE market.

• Hungarian real estate market – This is expected in the post-covid period

Intending to optimize its operations in Serbia, GTC has signed a sale and purchase agreement for the sale of

11 premium quality office buildings within 5 business parks

– Green Heart, FortyOne, Belgrade Business Center, 19 Avenue and GTC House – occupying over 122 ths. sq m in the business heart of Belgrade. The transaction price of 267.6 mn euro is slightly above the book value as of 31 December 2020 of 265.6 mn euro which proves the prudent valuation of GTC’s portfolio.

“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 on this market. The sale of the Serbian portfolio couldn’t be timelier as we are currently in the process of redefining market strategy and advancing our operations to be more sustainable and futureproof. 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.” – said Yovav Carmi, President of the Management Board of GTC.

The agreement is expected to be completed in Q3 2021. Once closed, the deal with the Hungarian investor will represent one of the largest real estate transactions on the CEE market in the last 5 years. With that,