♦ Sorin Preda, the founder of the owner and developer Global Vision, could sell the four projects – Tg.-Mureş, Craiova, Constanţa and Chitila, to invest the money in a new investment vehicle that would cover segments such as – office, logistics, retail, data centers and energy – photovoltaic parks.
Romanians abroad, Romanian executives from the country and abroad, but also other investors see a high potential at the local level, considering Romania’s economic growth, investments in infrastructure and the number of foreign investments attracted, which is why Global Vision wants to create a new investment fund that will allow him to place capital in the continuation of his projects.
Global Vision, the business founded by Sorin Preda and with activities both in the office area and in the industrial sector, could discuss with WDP, the second largest player in the logistics market to “replace” Globalworth in four of its projects – Târgu-Mureş, Craiova, Constanta and Chitila. According to data from the real estate market, Sorin Preda is already discussing the identification of a new partner to continue the expansion in the logistics sector.
Previously, Globalworth struck a deal with Remon Vos for the sale of its industrial portfolio, which did not include the centers owned in partnership with Global Visionm in a transaction of 275 million euros. Thus, the two local giants, CTP and WDP, “shared” Globalworth’s exit from the logistics sector.
Sorin Preda offered no comment on WDP in the transaction.
“We will see what will happen with these discussions. If it is concluded, we will make a public announcement. If it is not concluded, we will stay there and continue the developments. Could that cash go to this new investment fund? Certainly, if we make an exit and we, in turn, from there, that cash will go into a new investment fund. But regardless of whether this transaction is completed or not, we are determined to build this platform. This joint venture with Globalworth has produced a lot of good things for us over the past 5 years. He transferred a lot of information and know-how to us on the compliance side, he taught us to raise capital, he taught us to borrow money”, said Sorin Preda during the ZF Investiți în România show! A ZF and CEC Bank project.
The stake of the project is to invest in new branches with high added value and above average yield
“We were discussing office, retail and industrial, now we are also discussing data center and energy. The next step is the amalgamation of all this which will be called technology. Whether we like it or not, we can no longer stay in the area to manage buildings, iron and concrete”, emphasized Sorin Preda.
“We have to go to the area of added value on the chain more and more and that will certainly mean that in the area of warehouses we should also address a component of investing in production facilities. I believe that the business of the future belongs to cities and local, entrepreneurial companies. And this is a topic that I think we should think about in such a wider public dialogue with the governmental environment and with the Parliament and with the local public authorities to see what our strategy is in fact to attract investments in Romania”, he completed.
In the most recent transaction, Global Vision bought Nova Building, the office building in Barbu Văcărescu, the former headquarters of Banca Italo-Romena, at the beginning of last year.
“In this last year, we started the process of renovating and modernizing the building, to the extent of almost 80%. We are rehabilitating all the common spaces and an intense process of re-renting the spaces followed, which reached 100%. And we are very pleased with the fact that we have added new names to our client portfolio, with interesting operations and occupying office spaces. And here I am referring to companies such as Alive Capital, a leader in the field of energy distribution, two financial institutions, a leasing one and a bank, the Vista group. The list is completed by a very large company in the field of public infrastructure construction – Aktor, which is part of the Intrakat group and two other companies active in the field of consulting services”, said Sorin Preda.
“From our point of view, this investment was a success, it also offers a very good, double-digit yield on cost, which is remarkable for the market at the moment and shows that a well-thought-out, well-designed product and well proposed to the market immediately finds its occupants. Is 2024 a good year for acquisitions? I think so. And we will talk a little further about our plans in the future and how we see further investments in Romania”, added the executive.
The aim is to concentrate the projects in an investment platform.
“We can do it and we have the maturity to do it and we have already started this project with two consultants. A Big Four from the financial area, which can help us structure the capital and in the area of real estate consultancy with those from Colliers, who we have been working with for some time and who have a mandate from us to identify potential investors. It will be a real estate investment fund. Together with the consultant, with the Big Four, we explore the legislative alternatives available to us. I was happy to see that Romania also took into account a legislative initiative to establish, to develop a law that would allow the establishment of those rites. The Real Estate Investment Trust is absolutely necessary for development”, emphasized Sorin Preda.
What else does Sorin Preda, founder and CEO of Global Vision, say?
► The last year was our most fruitful year, from the point of view of the activity of renting and handing over spaces to the occupants of our parks and buildings.
► We bought the former headquarters of the Italo-Romena bank because we wanted to form an ecosystem around the company Global Vision, which is a developer and investor in the real estate field and by the nature of our activity collaborates with suppliers in the field of energy, with providers of services from the legal field, with financiers such as financial-banking institutions and so on.
► The paradigm of the type of investor is changing and the motivation of construction investors is changing. I saw a very changed geopolitical situation. No one expected the escalation of conventional military conflicts, no one expected a prolongation of inflation.
► We at Global Vision are strongly considering the idea of building our own investment platform. I have already started this project with two consultants. A Big Four from the financial area, who can help us structure the capital and in the area of real estate consultancy, those from Colliers.
► In Constanţa, this year, we are starting the retail project. We started a fairly intense promotion with one of the big brokers on the market and I think that project will start this year.
► We are moving into the area of value-added services. I am referring here to the data center. I really want to develop the data center product with application on the Romanian market, because if people need office space, they need a data center.
► I do not rule out collaborating with current investment partners in our future projects. We had a successful partnership with Globalworth, which lasted almost 4 years and is still active.
► We were able to promote a production and logistics project in Tg. Mureş at the moment when the section of the Cluj-Tg highway was ready. Mures.
► Hungary is a successful model because it had several attributes: first of all, it had political stability for many years. The people running that organization reported to a prime minister who stayed there for a very long time. Two, it was a bit closer to the West and benefited from things like Schengen. He had no such limitations. It had a diaspora that may have lobbied.
► In the medium and long term, we must have a plan with what demography means, until then a plan to import labor. If we only limit ourselves to the idea of manpower, to have as many arms as possible, and to provide services with little added value, with low productivity, we are not in the right movie.
► We must articulate a mission and a vision. And those who manage local, regional, national interests must somehow be in line with that vision. We don’t have to change, we don’t have to reinvent. That’s our problem, is that we reinvent the direction every 3-4 years.
► This year we celebrate 20 years of entrepreneurial and investment activity in Romania. And I looked at some statistics. We had 17 ministers of the economy. And it seems that this was a stable portfolio compared to others.
Tags: Invest Romania Sorin Preda Global Vision discussing partnership ..
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