Sorin Preda, Founder and CEO of Global Vision spoke to Property Forum about industrial developments in major and secondary cities in Romania, alongside plans to integrate office and manufacturing lines across the company.
This interview was first published in Property Forum’s annual listing of "The 50 most influential people on Romania’s real estate market”.
What are the highlights of Global Vision’s operations over the past 12 months and what is your outlook for this year?
We continue to be among the most active developers of industrial and logistics parks and hubs in Romania, and in the last 12 months we have continued to expand the projects we have in our portfolio. After leasing the second unit in Constanța Business Park, we obtained the authorization for the intermodal terminal, a component of Constanța Business Park development plan, and launched the concept “City Logistics. Last Mile”. We successfully delivered the pilot project in this series – Mureș City Logistics, the most modern industrial and logistics park in the Mureș area, and added an office building in the north of Bucharest to our portfolio.
This year’s prospects include the development of projects in main and secondary cities in the country and the expansion of the Constanța Business Park project. We are continuing our expansion in 6 cities, 4 of which are new strategic points in the country, Otopeni City Logistics and Chitila City Logistics being the next in the “City Logistics. Last Mile” series. We will start the construction of the third and fourth buildings of the Constanța Business Park project, where we will have an even greater diversity in the business community already created. We can count on at least 60,000 sqm of new space that Global Vision will deliver this year.
Sorin Preda
Founder & CEO
Global Vision
How large is Global Vision’s operational project portfolio and how much volume do you have in development? What is the investment potential of your land bank?
Global Vision’s portfolio comprises over 1.7 million sqm built and developed, and we manage around 800,000 sqm in the asset & property management division. At the moment, the company has secured over 500,000 sqm of land in eight cities in Romania, plus the land we have in existing parks where we can expand projects – that is a total of about 100 ha.
What is the structure of demand in Global Vision projects in terms of the origin of tenant companies?
We develop both projects with functions dedicated to the pure logistics segment, with ambient temperature but also built-to-suit buildings, mixed-use buildings, and turnkey projects, depending on our clients’ requirements. We can accommodate both warehousing, production, and office spaces in our parks. We have diversified our product with temperature-controlled warehousing solutions, we have also designed spaces with small, medium, and large surface areas. Of course, the demands have increased and vary as well as companies already present in our parks, for example the pharma industry, online retail or automotive, but also companies active in light industry that need spaces for assembly lines, for example.
Which are the locations with potential in Romania where you plan new developments?
In the current geopolitical context, Romania is becoming an important spot on the international map, generating economic opportunities, if we talk for example about the reconstruction of Ukraine. And if we refer to a specific region, I will mention the region of Moldova, more precisely the north-east. This is where production hubs can be developed for materials to be delivered and assembled in Ukraine. At the same time, connecting ports with road and rail infrastructure is vital for attracting new capital investment. At Global Vision, we already have plans for development in the north-eastern part of the country.
How is the partnership with Globalworth evolving? What are the prospects for the coming period?
Within our partnership with Globalworth, we added new projects every year and we wish this trend to continue. After the latest joint venture – Mureș City Logistics – we already have 4 new projects in discussion. The outlook for the coming period is driven by the current market context – a context in which the cost of invested capital and the total cost of new investments have increased and as such, the expectations for return on investment have also increased. We are assessing each investment business case individually, and on a case-by-case basis we will decide where it is appropriate to continue investing and where this decision should be deferred for a period. However, Romania is, in my view, one of the most attractive investment markets in the EU in terms of returns on invested capital.
What are the emerging trends in the regional industrial and logistics market?
As last year, we are still talking about re-shoring, near-shoring, friend-shoring, and the industrial and logistics segment is going through a productive period. Taking also into account that Romania already has an infrastructure modernization plan announced, our country continues to be a strategic point on the European map for companies seeking access to European and EMEA markets. Constanța Business Park exemplifies best the benefits of connectivity for investors looking to relocate.
How do you see rents for industrial projects evolving over the next 12 months?
Over the next 12 months, rents will continue to increase, driven by rising investment costs across the board, from the cost of capital to the cost of construction and development. In addition, inflation, and indexation of rents to inflation coefficients will generate the same trend.
How do you address ESG in Global Vision operations? How important is project sustainability to tenant companies?
In our discussions with the relevant actors in the supply and production chains, we place great emphasis on the value of the circular economy concept. We are very keen that the parks we develop, which is our investment portfolio, should also include large park developments, such as Constanța Business Park, in Romania’s regional development poles, where we can provide customers with the possibility to accommodate the collection, sorting, material recycling and production operations. In this way, we save a lot of wasted capital and directly and very measurably reduce our carbon footprint.
At the same time, green energy is part of all the discussions we have with tenants, and we have already signed the first agreements for the installation of photovoltaic panels. On the social front, Global Vision continues to be involved in projects in the areas of education, health, and sport.
How does the acquisition of the Nova Building (the current Corner Office Building) fit into the Global Vision strategy? Are you exploring an expansion into the office segment?
The acquisition of the Corner Office Building was a natural fit for the Global Vision portfolio and strategy, as our projects are also designed to meet the needs of the small and medium-sized business segments. We aim to become an integrated provider of office, storage and manufacturing solutions and we expect this office space component to be found in all the industrial parks and business hubs we are developing not only in strategic areas but also in new locations in Romania. We are following the same path, to develop more than industrial parks, to develop sustainable business communities where we meet all the needs of our customers.
