GTC signed a SPA to sell its A-class Matrix A and B office buildings in Zagreb to a strong local real estate group from Croatia. This transaction will mark a return on cost exceeding 22 percent and is about 7 percent above the book value. GTC’s ability to sell assets well above the book value demonstrates that the current discount to NAV on its share price is not justified.
Matrix A and B are part of the Matrix Office Park, a modern business centre located in Zagreb’s business district. Matrix Office Park provides a total of approximately 21,440 sqm of leasable space and 526 parking spots. These features already attracted a very well-known, international tenant mix from various industries. Matrix A was completed in 2019, followed by Matrix B just a year later. Both buildings are LEED Platinum certified. GTC has already started the development of the third building, Matrix C, which will enhance the Matrix Office Park in Q2 2023 and plans further development beyond this.
”Our strategy to sell some of the existing projects to invest in new ones performs extremely well, and our previous sales are a proof point to it. The Matrix A and B buildings are one of the highlights of the Group’s portfolio, however, the sale at a premium will provide cash to fund our further growth. Matrix Office Park was created with a sustainable strategy and pro-ecological mindset, as confirmed by the fact that it is the only LEED Platinum-certified business centre in Croatia. I would like to thank everyone involved in the growth of Matrix Office Park. We succeeded in making this place a prominent location on the map of Zagreb. I am also excited to say that we will continue to develop this location as GTC has already the next phase of the Matrix Complex under development, Matrix C, and a significant landbank which will allow for almost 40,000 sq m GLA of additional office space to be developed,” said Zoltán Fekete, CEO of GTC.
The planned closing date of the transaction is the end of Q3 2022. At the moment, GTC’s property portfolio in Croatia includes Avenue Centre, which provides class A office space located close to the city centre, Avenue Mall – a shopping mall in one of the busiest intersections in Zagreb, and Matrix C office building under construction within the Matrix Office Park.