Bankers and notaries choose GLOBIS Wrocław

GTC acquires two prestigious tenants for its Wrocław investment – GLOBIS Wrocław. One year prior to completion of construction works the firm has rented out 1,600 square metres at the facility.

Globe Trade Centre S.A. (GTC) has signed lease agreements for 1,600 square metres of office space at GLOBIS Wroclaw. The first tenants, Raiffeisen Bank and the AJ Tarkowski Notary office will move into the new offices on the works completion which is due in the first half 2008.

Raiffeisen Bank will occupy the total of 1,250 square metres at GLOBIS Wrocław. The retail department will be based on the ground floor, and the first floor will accommodate the bank’s regional office. The AJ Tarkowski notary firm will lease 350 square metres for its office.

GLOBIS is GTC’s first office investment in Wrocław and it is being developed by GTC Globis Wrocław, a partnership 100%-owned by Globe Trade Centre S.A. It is being constructed at the junction of Powstańców Śląskich i Swobodna streets, in direct proximity to the newly built shopping centre, Arkady Wrocławskie, and the many commercial and residential investments nearby, not far from the main railway and bus stations. The new office building will consist of 12 levels, 11 with an average space of 1,200 square metres for offices, and the ground floor with 850 square metres of shopping and amenity space.

The office space has been designed so as to accommodate offices of one or several tenants. The design project and the building’s shape will allow for effective layout of the space and an easy access of daylight, providing for comfortable work places.

The GLOBIS Wroclaw architectural project has been developed by Wroclaw’s Studio EL architects under the supervision of Mr. Edward Lach. Mr. Lach has designed a modern compact longitudinal bloc, stretching along the Powstańców Śląskich street. The building’s crowning point is the transparent glass corner which will be the main entrance. A car park for 200 cars will be built under the ground.

IK Development and Knight Frank agencies will be in charge of the space lease at GLOBIS Wrocław. IK Development is a local Wroclaw real estate office specializing in commercial facilities lease. Knight Frank is part of an international real estate consultancy.

Wroclaw is one of seven cities of Globe Trade Centre’s operations in Poland: Warsaw, Krakow, Poznan, Katowice, Lodz, and Czestochowa. In October 2006 a GTC-dependent partnership acquired 1.3 hectares of land at Karkonoska street, between the city centre and the Kobierzyce Special Economic Zone. This is a plot where GTC plans to develop an office complex of 30,000 square metres.

GTC accelerates new investments in 2007

Q1 2007 profit amounted to 11m EUR. Higher margins achieved on rental income and residential sales. Sales of new residential projects are progressing at a fast pace. 2007 development program provides for investment of up to 800m EUR in acquisition of land and construction of new projects.

Globe Trade Centre S.A. (GTC) recorded 11.2m EUR profit in Q1 2007, while revenues amounted to 14.9m EUR.

In the first quarter of 2007 GTC achieved impressive margins: 75% gross margin on rental revenues and 36% gross margin on residential sales – an improvement both year-on-year and quarter-by-quarter. The improvement resulted from an increase in both rental rates and occupancy level in office buildings, as well as rising prices of apartments.

The decrease in revenues in Q1 2007 compared to Q1 2006 reflects the divestment of 50% of Galeria Kazimierz in Q2 2006 and Mokotów Business Park in Q4 2006. In Q1 2006 large revaluation gains were booked upon completion of America House (27,000sqm NRA) and Topaz (11,000sqm NRA) – large office buildings in Bucharest and Warsaw, which explains a year-on-year drop in profit.

In Q1 2007 Newton – a class A office building in Cracow was completed, adding 10,400sqm of net rentable area (NRA) to GTC’s investment property portfolio. The new building was leased 100% before completion and boasts top quality international tenants: IBM Consulting, Fortis Bank, Hewitt Associates and Hitachi. Profit from revaluation of Newton in the amount of 10.7m EUR (before tax) was booked in Q1 2007.

Cracow is the second largest city, after Warsaw, of GTC’s activity in Poland. Next to Newton and Galileo the Company is developing Edison and Pascal office buildings. Upon completion those four buildings will create an office park comprising 36,000sqm of modern class A office space.

GTC has been experiencing a significant improvement in office market conditions both in Warsaw and in other large Polish cities. Increasing rental rates and occupancy levels provide an encouraging business environment for accelerated development of office buildings in Poland.

The largest office building in GTC portfolio, Nefryt, is 35% leased one year before completion, following the 5300sqm lease signed with Noble Bank in Q1 2007.

GTC is currently developing in parallel more than 150,000 sqm of net office space in five cities: Warsaw, Cracow, Wroclaw, Katowice and Lodz, while another 200,000sqm of NRA is going to be developed in the further stages.

In addition to construction of office buildings , GTC is developing a regional shopping centre in Czestochowa (50,000 sqm NRA) and 4 residential projects in Warsaw, Cracow, Poznan and Katowice.

GTC residential projects are selling very well across the region, with sales in Bucharest being particularly impressive. In Rose Garden 336 apartments out of 404 available in the first phase have been sold within 5 months. In the Felicity project 76 apartments (out of 112 units offered for sale) were sold within 3 weeks time. In order to facilitate growing demand for high quality apartments, GTC is accelerating the development of those two projects, and will complete subsequent phases earlier than initially scheduled.

In Park Apartments in Belgrade 80% of all units have been sold up- to-date, while in Sasad Resort in Budapest 175 flats out of 271 offered for sale in the first stage have been purchased.

The high pace of new investment continued in 2007. In Hungary GTC finalized the acquisition of the Renaissance Plaza office project in Budapest. The site is situated in an attractive location next to the Vaci ut corridor and will allow construction of 24,000 sqm NRA of class A office space.

In Zagreb, GTC Croatia purchased a 12,000sqm plot, where 18,500sqm of net retail and office space is going to be developed. Centerpoint Zagreb will be GTC’s second project in this city – the first one, Avenue Mall shopping centre, is now fully let and scheduled for opening in the coming months. After the opening Avenue Mall will generate the annual net rental income of 10m EUR.

In Romania GTC started construction of three shopping centres in mid-sized cities: Buzau, Piatra Neamt and Suceava. They will offer in total 35,000sqm of net retail space. The construction is to be completed by the end of 2007 and most of the anchor tenants have been already secured. The chain of retail centers is developed together with Aura Group, where each partner holds 50%. The investment program provides for development up to 10 shopping centers by the end of 2008.

GTC also plans to develop over the next three years 3 to 5 shopping malls in Bulgaria, targeting large Bulgarian cities with significant spending power.

In Q1 2007 Globe Trade Centre S.A. (GTC), for the first time presented and from now on will be presenting IFRS financial reports in euro. Previously GTC was using US dollars as a reporting currency.

In March 2007 the GTC Supervisory Board approved a development program which provides for investment of up to EUR 800m for acquisition of land and construction of new projects in 2007. Such an impressive volume of investment reflects the accelerated growth strategy, which GTC is implementing in the region.

GTC accelerates new investments in

GTC Bulgaria has acquired a retail site in Varna.37,000 sq m NRA mall is going to be completed in Q4 2008.Terms of acquisition of two more retail sites in Bulgaria have been agreed.

GTC Bulgaria has acquired a 65% stake in a retail project in Varna, Bulgaria’s second-largest city. The project comprises 37,000 sq m of net rentable area. Upon completion, scheduled for Q4 2008, the shopping centre will generate about EUR 9.5 million in rental income annually. Acquisition of another two retail projects in Bulgaria is progressing.

GTC Bulgaria, a 95%-subsidiary of Globe Trade Centre S.A. (GTC S.A.), acquired a 65% stake in a retail project in Varna. The remaining 35% belongs to the owner of the land, a reputable local entrepreneur.

The shopping centre will comprise about 37,000 sq m of net rentable area. The total development cost, including land, is estimated at EUR 77 million. After completion the project is expected to generate EUR 9.5 million in annual rental income.

A zoning permit has already been obtained for the project. Construction will start as soon as a building permit is received, and is planned to be completed in Q4 2008.

The shopping mall will be located at the intersection of the city’s major transit routes, next to popular housing districts. Varna is the second-largest city in Bulgaria and one of the main tourist destinations on the Black Sea coast, with 330,000 inhabitants.

In addition to the site in Varna, GTC Bulgaria has agreed on terms for the acquisition of two other retail projects in large Bulgarian cities. The two projects comprise a total 60,000 sq m of net rentable retail space. The completion of those transactions is subject to positive results of due diligence.

Per capita retail space in Bulgaria is one of the lowest in the region. The country’s recent EU accession is expected to stimulate development of the retail market in Bulgaria, as demand for modern shopping malls will increase along with the growing disposable income of local residents, supported by the spending power of foreign tourists.

GTC launches construction of Okęcie Business Park

GTC starts development of the first phase of the OKĘCIE BUSINESS PARK complex. NOTHUS building will offer the total of 8,850 square meters of A class office space.The completion of the construction is due 1Q 2008.

Globe Trade Centre S.A. (GTC) begins the development of an investment that is unique to the Polish market – OKĘCIE Business Park. In the first quarter 2008 the real estate developer will open the first building of the complex – NOTHUS.

NOTHUS will be the first out of seven office buildings in what will be the OKĘCIE Business Park, which is being developed at ul. 17 Stycznia street, next to the LOT Polish Airlines and Polish Airports buildings. This modern business park is being constructed between Al. Krakowska street, the exit way to the cities of Łódź, Kraków, Wrocław and Katowice, and ul. Żwirki i Wigury street, the way leading from the city centre to the Okęcie International Airport.

On seven levels NOTHUS will offer its tenants the total of 8,850 square metres of office space. The ground floor will accommodate 400 square metres of shopping and services space. 205 parking bays will be developed for future users.

A typical building level will accommodate 1,434 square metres and its space has been designed so as to provide for maximum comfort and a flexible arrangement of the interior for future tenants’ needs.

NOTHUS will be equipped with a modern building management system and a modern access control system supervised by a professional security service. The building will also have full air-conditioning, suspended ceilings and tilt-in windows. All toilets and kitchens will be fully equipped.

GTC is the first firm to develop a modern office complex in direct proximity to the airport. This will be an excellent location for international firms and corporations which seek convenient connections not only with the city centre or Warsaw prestigious residential districts, but also with major roads leading to southern Poland and with international airport connections” – says Mr. Piotr Kroenke, GTC Director General.

OKĘCIE BP will be the first business park in this part of Warsaw and its format will be similar to parks surrounding international airports in the world’s biggest cities. The complex’s first building has acquired its name from one of the 24 winds of the rose drawn on an early 16th century world map.

The OKĘCIE BP’s architectural design has been prepared by APA Kuryłowicz&Associates (APA KA), under supervision of a renowned Polish architect, Prof. Stefan Kuryłowicz. Like other buildings in the complex, NOTHUS will be a U-shape construction. The glass façade of the building will provide for inflow of daylight and direct contact with the green surroundings, as well as a view on the airport runway and airplanes during take-off.

On the one hand, the building’s location is far from the crowded city streets, and on the other it provides for easy access to city transport. It is also a unique venue with a natural lake in Okecie green fields. The complex will accommodate many leisure facilities and a network of strolling paths and little avenues leading up to each building. According to architects and office space lease specialists this is a fantastic offer for firms which appreciate a calm and creative working atmosphere.

The development of the traffic system around the airport, the extension of the 17 Stycznia street to the Poleczki street and further on to the Puławska street will provide the tenants with convenient access to the major national and Warsaw roads.

The general contractor of the NOTHUS building is Warbud S.A., and the Jones Lang LaSalle and CB Richard Ellis agencies will be responsible for office space lease.

The building’s construction will cost Euro 20 million, and the total cost of the Okęcie Business Park complex is estimated at Euro 120 million.