GTC is selling 50% interest in its shopping centre in Kraków

Galeria Kazimierz valued at EUR140 million
GTC is selling 50% interest in its shopping centre in Kraków

On 21st December 2005 Globe Trade Centre S.A. concluded with Quinlan Private an agreement to sell 50% stake in GTC Galeria Kazimierz Sp. z o.o.

(“GTC Galeria Kazimierz”) – a subsidiary that owns Galeria Kazimierz shopping centre in Kraków.

The transaction was concluded upon valuation of 100% of the shopping centre at approx. EUR140 million.

The completion of the transaction is scheduled for Q1 2006.
According to the agreement GTC will retain the management of the shopping centre..

As of 30 Sept 2005 Galeria Kazimierz was recorded in GTC’s consolidated balance sheet at the value of aprox. EUR100m. As a result GTC will post a profit from the transaction of approx. EUR 40m (before tax) in Q4 2005.

The sale is in line with GTC’s strategy to diversify its portfolio and increase its activity through strategic partnership in the region.

Operating since March 2005, Galeria Kazimierz is a leading shopping centre in Kraków. It comprises 113,000sqm gross area and 130 shops, that includes anchor tenants such as Cinema City, Alma, H&M, Zara, Reserved, C&A, New Yorker and Hugo Boss.

In November 2005 Galeria Kazimierz was awarded a title “Best shopping Centre in Poland opened in 2005” in Construction and Investment International Journal Awards.

Quinlan Private is an Irish independent private client advisory group, which was founded in 1989. It has an established competence, as principal and advisor, in originating, structuring, financing, developing and managing a diversified portfolio of prime assets. These assets include commercial office blocks, shopping centres, car-parks and hotels throughout Europe. Its current property portfolio comprises approximately 140 assets.
Quinlan Private’s total assets under management currently exceed Eur 5 billion.
These assets are located mainly UK and Ireland (80%) and CEE (15%).

Acquisition of shares in its CEE subsidiaries

GTC S.A. completes the acquisition of shares in its CEE subsidiaries

On 21st December 2005 Globe Trade Centre S.A. completed the transaction with ADRI International B.V. (“ADRI”) according to the agreement signed by the parties on 10th October 2005.

Following the acquisition of ADRI shares in GTC’s subsidiaries in Hungary, Romania, Serbia and Croatia, and purchase of shares in GTC Romania from Firestorm in another transaction, Globe Trade Centre S.A. now holds approx. 97% in each of GTC Hungary, GTC Serbia and GTC Croatia, and 94.5% in GTC Romania.

GTC is expanding on the booming real estate markets of the region, as impressive pipeline projects are being completed and new projects are being acquired.

An increase of GTC’s holdings in CEE subsidiaries follows after a record quarter in the history of the Company. GTC achieved a consolidated net profit of USD37.7m and the milestone of USD1bn in total assets in 3Q 2005 .

By the end of 1Q 2006 GTC will complete office buildings in Warsaw (Topaz), Bucharest (America House) and Budapest (Centerpoint II), that will increase its cash-flow producing property portfolio by approx. 60,000 sqm. Additionally sale of Allianz building is scheduled to be completed in 4Q 2005.