Globalworth Real Estate Investments Ltd, the real estate investment company targeting opportunities in Romania and the broader SEE and CEE regions, is pleased to announce the execution of a binding sale and purchase agreement for the acquisition of the company owning Timisoara Airport Park ("TAP"), a light industrial complex located to the northeast of Timisoara close to the Traian Vuia International Airport and the western border of the country.
The TAP complex is partially developed, with Valeo, a multinational corporate operating in the automotive industry, and Continental, the German car parts and tire manufacturer, having let or pre-let c.72,835 m² of light industrial space, while both companies have the option to develop additional facilities in the property. Assuming the exercise of these options, TAP will offer a total GLA of c.113,340 m² making it one of the largest industrial parks in the country.
Valeo currently occupies c.27,474 m² of light industrial space in the property which was completed in 2011, while Continental has pre-let a c.45,361 m² of light industrial space which is expected to be delivered in March 2015.
Timisoara is the second largest city in Romania by population, situated in the western part of the country, and represents an important social, economic and educational center. The close proximity of Timisoara to the western border with Hungary and Serbia has positioned it as one of the main logistics sub-markets of Romania, attracting a number of international companies, especially in the automotive and IT&T sectors.
The total size of the investment is estimated to be approximately €35 million, of which approximately €18 million is the upfront acquisition cost with the remaining to be spent on the development of the various phases of the project. Closing is expected to take place in the next few weeks.