Globalworth sells part of its logistics portfolio in Romania to CTP

Globalworth, the largest owner of office buildings in Romania, announced that it is selling part of its logistics portfolio in Romania to CTP, the largest developer in this segment. The transaction value could exceed EUR 170 million, according to Economica.net.

Globalworth is set to sell five of its logistics parks, with ten facilities in Timișoara, Arad, Oradea, and Pitești. Also set for sale are the majority holdings in two other small-scale projects in Bucharest.

The company's holdings in logistics projects built in partnership with Global Vision and CATTED in Chitila, Constanța, and Târgu Mureș are not included in the sale.

The sale marks the first exit Globalworth has made in Romania since its establishment in 2013 and is part of the company’s strategy to increase liquidity and sell non-core properties. The sales revenue will be used by the company for general corporate purposes, as further indicated in the company's announcement, cited by Economica.net.

The profit attributed to the SPVs holding the logistics properties for the fiscal year ended December 31, 2022, was EUR 7.6 million, excluding the loss or gain on the revaluation of real estate investment.

Globalworth is expected to receive EUR 70 million, excluding working capital, and after adjusting associated bank loans, valued at EUR 98.2 million. The final value of the transaction will be determined based on the balance of the guaranteed loan and the working capital balance at the closing date and is to be paid in cash by the end of May 2024.

Globalworth's entire logistics portfolio exceeds 300,000 square meters. Last year, the developer reported net operating revenues of EUR 146.9 million, up from EUR 139.6 million, and registered a loss of EUR 53.8 million, according to the company's preliminary financial data.

Since the beginning of the pandemic, the company has not initiated any new investments in the office segment in Romania but has directed its investments towards the logistics sector and built warehouses in partnership with Global Vision and CATTED. In November last year, it started a logistics project in Craiova, where it purchased land in the northern part of the city. In the first part of this year, a 6,000-square-meter warehouse, fully leased by Returo SGR for a period of 20 years, will be delivered.

CTP, in turn, is the largest owner of warehouses in the country and has a portfolio of industrial parks with a total area of approximately 2.6 million square meters in several cities in Romania, including Arad, Brașov, Bucharest, Craiova, Oradea, Sibiu, and Timișoara.