GTC bond issue proved a hit

GTC’s 800 million PLN bond offering was substantially oversubscribed. This was the largest single tranche of bonds sold on the Polish market by a public company. The new funds will finance expansion in the region: the acquisition of land and construction of new projects.

Globe Trade Centre S.A. has completed an 800 million PLN offering of five and seven-year coupon bonds. Demand from leading Polish institutional investors substantially exceeded the maximum size of the offering. Proceeds from the sale of bonds will be invested in the purchase of land and the construction of new real estate projects in Central and Eastern Europe.

On 25th April Globe Trade Centre S.A. (GTC) completed an 800 million PLN offering of bonds. 80 million PLN has been raised through the issuance of five-year bonds and 720 million PLN through bonds with a seven-year maturity.

The interest payable is based on the six-month WIBOR, increased by a margin, and paid every six months.

The offering was addressed to the leading Polish institutional investors: pension funds, mutual funds, asset managers and banks. The demand from these investors substantially exceeded the maximum size of the offering. This is a very strong vote of confidence in both the strategy currently being executed by GTC’s management and the growth prospects of the company.

Raising funds through the issuance of bonds will on the one hand diversify GTC’s sources of financing and on the other hand will allow greater flexibility in the allocation of capital to regional projects.

Pekao S.A. and BPH S.A. acted as arrangers of the bond offering.

Noble NEFRYT

NEFRYT 35% leased one year before completion. By April 2008 GTC will deliver the total of 33,000 square meters in Warsaw – will invest some Euro 70 million in the development of modern office space.

One year before completion of the NEFRYT office building, Globe Trade Centre S.A. (GTC) has signed a lease agreement with the prestigious financial institution NOBLE BANK. According to the agreement NOBLE BANK will occupy 5,300 square metres, which is 35% of the space available in the building.

NEFRYT, which is due for completion in April 2008, is being constructed on the plot at the junction of Domaniewska and Rodzin Hiszpanskich streets in Warsaw. Its major advantage is its outstanding location very near Galeria Mokotow.

„As a prestigious financial institution, NOBLE BANK, has been looking for the most modern office space for its staff and clients at an excellent location. Being already a tenant in the Topaz building, the firm has had a very good relations with GTC and it has become familiar with standards of GTC’s office buildings. The agreement signed now is the best proof that NEFRYT meets the utmost requirements of the tenant” – says Ms Katarzyna Pankiewicz, Office Leasing Manager at Globe Trade Centre S.A.

NEFRYT is one of the three office buildings in Warsaw that GTC is planning to have opened by April 2008. The first building, PLATINIUM Business Park (9,000 square metres of office space), at the junction of the Domaniewska and Woloska streets, will be completed by the end of 2007, and at the 17 Stycznia street an office building is being built with 8,850 square metres of A class office space, which will start the OKĘCIE Business Park complex.

By April 2008 GTC will have invested some 70 million Euro in the development of modern office space in those three new buildings.

In NEFRYT, more than 15,000 square metres of top quality office space is being developed.

The architectural design project has been prepared by award-wining studio JEMS Architekci. Renowned international real estate agencies CB Richard Ellis andCushman and Wakefield are in charge of leasing of office space.Austrian construction firm Strabag is a general contractor of NEFRYT.

GTC begins construction of GALLERIA chain in Romania

GTC is expanding in the retail sector on the Romanian market. First three GALLERIA shopping centers to be completed this year. The company plans to build more than 10 GALLERIA shopping centers over the next 4 years.

GTC Romania is beginning construction of three shopping centers in medium-sized cities under the common brand GALLERIA. The gross area of the buildings, which are to be completed by the end of this year, is about 50,000 sq m.

GALLERIA is the brand for shopping centers that GTC Romania will build in medium-sized Romanian cities. GTC Romania has begun construction of the first three buildings in the cities of Buzau, Piatra Neamt and Suceava.

GALLERIA will be the first chain of mid-sized modern shopping centers on the Romanian market. The company plans to build about 10-12 similar facilities in Romania within the next 4 years.

GALLERIA Buzau is being built on a plot of 2.1 hectares near the center of the city, and will offer 13,500 sq m of lettable space. Underground parking for customers will hold 300 cars.

GALLERIA Piatra Neamt is located in the south-eastern section of the city on a 1.8-hectare plot near the main access route to the city center. The two-storey building will have lettable space of 12,200 sq m as well as parking for 300 cars.

GALLERIA Suceava, located at the intersection of the city’s two main traffic arteries, will offer 10,700 sq m of lettable space together with 270 parking places.

The main tenants of the GALLERIA shopping centers will include a supermarket, a furniture store, an electric appliances superstore, as well as fashion stores, shoe and cosmetics shops. The centers will also offer food services, with a food court, cafés and restaurants.

The operator of the supermarkets in the GALLERIA centers will be the prominent international food store chain SPAR.

Lease terms have been negotiated with other main tenants and letters of intent have been signed.

The general contractor for the GALLERIA chain will be the Turkish construction firm Yapitek. The architectural design for GALLERIA was prepared in consultation with Speakman Design, which advises on effective location of shops and tenant mix. Colliers International is the exclusive letting agent for the commercial space.

The name GALLERIA comes from Polish investments of Globe Trade Centre: Galeria Mokotów in Warsaw and Galeria Kazimierz in Cracow.

Development of GALLERIA shopping centres is a joint venture with Aura Group, where both partners hold 50% interest.

In addition to shopping centres in Buzau, Piatra Neamt and Suceava, GTC Romania is developing, together with Aura Group, a 25,000sqm NRA shopping centre in Arad. GTC Romania holds 75% stake in this venture.

Romania is one of the key markets in Central & Eastern Europe for Globe Trade Centre. With the participation of strategic partners, the company is building a total of 12 properties with total area of 455,000 sq m (of which GTC’s portion is 290,000 sq m) in all three segments of the real estate market: office, retail, and residential.

GTC Romania is a 95% subsidiary of Globe Trade Centre S.A.

New GTC office investment in Budapest

GTC expands its portfolio of Hungarian office investments. The company has acquired plot for construction of new office centre Renaissance Plaza in Budapest.

GTC has acquired 6,000 sqm of land at Vaci ut street in Budapest, where it is planning to develop a modern office complex. In the new A class facility the developer will offer some 23,500 sqm net of office space.

GTC Renaissance Plaza will be developed at Vaci ut street, one of the quickest developing commercial areas in Budapeszt (District 13). At present, a 19th century market hall and old factory buildings occupy the plot. GTC Hungary is planning to revitalize this site and create an exceptional architectural complex whose format will be based on the existing structures. GTC Hungary representatives are co-operating with the District and City authorities on restoring and sustaining the historical symbols of this venue.

“In commencing work on this outstanding project we wish to combine the plot’s natural assets with future tenants’ requirements. GTC Renaissance Plaza will be an exceptional combination of historical architecture and the latest architectural solutions” – says Hagai Harel, Member of GTC Board.

GTC’s new investment will be developed near Centerpoint, an A class office building that GTC opened in 2006 and that is rented out in full.

“Purchasing a plot in an excellent Budapest location is a significant step in the development of GTC Hungary, whose portfolio has risen to 430,000 square meters of commercial and residential space” – admits Eli Alroy, President of the Board of Directors GTC S.A.

GTC Hungary is 97%-owned by Globe Trade Centre S.A