GTC completes its new shares offering – raised USD150m for acquisition of new projects in CEE

Globe Trade Centre S.A. (GTC) successfully placed 1.712m new shares, raising USD150 milion.
During the book-building process qualified investors declared demand for a total of 4.7m shares.

The offering of series G shares was directed to Qualified Institutional Buyers. CDM Pekao S.A. and ING Securities S.A. were Join Offer Managers, and London-based CA IB and ING Bank acted as Global Co-ordinators. Weil, Gotshal & Manges were the legal counsel for the transaction.

GTC shares issue was the biggest offer on the Warsaw Stock Exchange year-to-date. During the book-building process investors declared demand for a total of 4.7 million shares, while the potential maximum size of the offering was 1.8m shares. The issue price was PLN 285.
The new shares were purchased by the leading domestic and international institutional investors, all of them are first-tier names. The success of the offering shows investors confidence in GTC’s ability to identify real estate opportunities and to accelerate our expansion in the region ” – commented Mariusz Kozłowski, member of GTC Management Board in charge of Investors Relations.
Our precise target was to raise USD150m from the offering. With such big demand from investors we achieved the goal by selling just 1.712m shares.” – said Erez Boniel, GTC Finance Director.
New funds raised from the offering will be used for the acquisition of new projects in CEE real estate markets at a faster pace.

In March 2006 Globe Trade Centre S.A. started its activity in Slovakia, while new investments in Bulgaria and Ukraine are to commence in 1H 2006. By the end of the year GTC will have been active in 9 countries of the region.

With existing financial resources and newly raised equity GTC will be able to invest at least USD1bn in new projects by the end of 2008.

 

GTC is commencing activity in Slovakia – its seventh CEE country of operations

GTC to develop 350 high-standard apartments in attractive location in Bratislava.

Globe Trade Centre S.A. – acting through its 95%-subsidiary, GTC Slovakia, has acquired a company (GTC Bratislava) that is going to develop an attractive residential project in Bratislava.
The project will offer 350 high-standard apartments and will be built on a 2.8 hectare plot that overlooks the centre of Bratislava.

GTC Bratislava is in the process of acquiring the land from a Seller for a price of EUR3.7m. The Seller holds a 30% interest in GTC Bratislava. Such transaction is in line with GTC’s strategy of joint ventures with land owners and other partners, that shall contribute to accelerated expansion of GTC in CEE.

GTC will manage the development process, and will co-operate with its partner in further residential projects in Bratislava.
Construction of the project is planned to commence at the end of 2006, and to be completed in 1H 2008.

This transaction marks another milestone in GTC’s regional expansion – the commencement of activity in its seventh CEE country. Slovakia, the fourth EU member country in which GTC operates, enjoyed GDP growth in 2005 of more than 5%. The capital, Bratislava is the largest city, with population of over 500,000. It also is seeing a constant inward migration of new inhabitants from other parts of the country. GTC intends to develop more projects in Slovakia, focusing mainly on the residential market in Bratislava, though it does not exclude other opportunities that may arise.

Third project for GTC in Serbia

Globe Trade Centre has agreed the terms for the acquisition of a 19,500 sq.m. property in Belgrade and plans to develop it into office and retail space. In parallel, the Company is constructing its office building “19Avenue” and the residential complex “Park Apartments” in the Serbian capital.

The property is located in New Belgrade and according to the preliminary design 20,000 square meters of office and retail space would be developed on the site. The price agreed for the land amounts to approx. Euro 10 million. GTC is currently carrying out a due diligence of the property. If the transaction is finalized, the project should be completed within 2-2.5 years.

GTC has already started the construction of an A-class office building “19Avenue” and “Park Apartments” in the capital of Serbia. Alpine – the second largest Austrian construction company has been nominated as the general contractor. The first phase of the project, which consists of an office building with net rentable area of 16,700 sq.m. and the first stage of the total 200 apartments planned, will be completed in the fourth quarter of 2007.
Colliers International has been appointed as the exclusive agent for the sale of apartments and the leasing of office space. 50% of the apartments from Phase 1 have been already sold.
The project is financed by EBRD and Raiffeisen Zentral Bank.

In Q3 2005 GTC completed an A-class office building – GTC House in Belgrade. The building attracted a great deal of interest from the international tenants and the entire area of 13,500 square meters was leased to international corporations, including Raiffeisen Bank, EBRD, Nestle, Honeywell, Phillip Morris and L’Oreal.

Globe Trade Centre acquires large residential project in Bucharest

Globe Trade Centre S.A. (GTC) agreed terms for acquisition of land and plans to develop 1300 high-standard apartments in Bucharest.

Following its announcement of accelerated expansion program in Central&Eastern Europe, GTC signed a memorandum of understanding on acquisition of 105,000 sqm land in Bucharest.
GTC expects to achieve building rights of 130,000 sqm of gross residential space. The plot is located in the northern part of the capital .The Project will comprise 1300 high-standard apartments to be developed in stages over the next 5-7 years.
This new investment will increase GTC’s portfolio in Romania to 400.000 sqm of gross commercial and residential space. The acquisition further demonstrates the importance of the Romanian real estate market in GTC portfolio.

GTC will finalise the transaction after performing due diligence. The acquisition price is approximately 12.6 million euro.

GTC will acquire the land together with a partner while GTC’s share in the project will amount to 80%.