New points on the map of GTC`s international investments

GTC significantly increases its investment portfolio and strengthens its position in Central & Eastern Europe.

GTC Bulgaria has acquired 75% of shares in the company building a shopping mall in the city of Stara Zagora, Bulgaria.In Romania, GTC’s investment portfolio increases by 57 000 sq m with a new investment in Bucharest

Subsidiaries of Globe Trade Centre S.A. (GTC) are beginning to carry out new investments in Romania and Bulgaria. GTC Bulgaria has acquired 75% of shares in the company building a shopping mall in Stara Zagora, Bulgaria. GTC Romania has purchased land for a residential investment in Bucharest.

GTC Bulgaria will build the first modern shopping center in Stara Zagora. Stara Zagora is a city located on the route from Sofia to the Black Sea coast. In this city of 180,000, two investments important for the Bulgarian market are currently underway: the country’s largest brewery, being built by Heineken, and construction of a thermal power station. GTC acquired a plot of 12,500 sq m in the city and plans to construct a shopping mall with net area of 23,000 sq m. The opening of the mall is planned for Spring 2009. The value of the investment is EUR 42 mln, of which EUR 5.5 mln represents the cost of purchase of the site (EUR 4.1 mln is the part attributable to GTC Bulgaria).

The shopping center in Stara Zagora, GTC’s second investment of this type in Bulgaria, is being carried out with the participation of a local partner holding 25% of shares in the venture. In May of this year, GTC Bulgaria also acquired a majority stake in a company constructing a shopping mall in Varna. The company is currently planning further investments in this sector in Bulgaria, which has one of the lowest levels in the region of modern retail space per resident. Since EU accession, dynamic growth of the commercial sector is expected in this country. The demand for modern buildings will grow along with growth in the income of the local population, additionally strengthened by purchasing power.

GTC’s latest investment in Romania began with acquisition of 66,7 % of shares (cost: EUR 9,61 mln) in the company possessing 46,500 sq m plot. , on which 85,000 sq m of apartments will be built (57 000 sqm is the part attributable to GTC Romania). The site is located in northern Bucharest, in a popular and rapidly growing residential district, not far from the investment (100,000 sq m of middle- and upper-class apartments) which GTC acquired in early July of this year, near the prestigious American School.

This investment is planned to be completed in 2009-2010. In addition to holding a majority share, the Company will also be responsible for management of the project, for which it will receive a fee equal to 5% of the investment costs (excluding the cost of land).

After this transaction is finalized, GTC’s completed and under development investment portfolio in Romania will include:
· 427,000 sq m of residential space
· 115,700 sq m of retail space, and
· 98,400 sq m of office space.

Meanwhile, the development projects conducted by GTC in Bulgaria will include:
· 60,700 sq m of retail space, and
· 8,500 sq m of office space.

GTC – new residential investment in

GTC Hungary acquired 61 000 sqm site in prominent location in Budapest. On the site GTC plans to develop 58 500 sqm residential project.

GTC Hungary, the subsidiary of Globe Trade Centre S.A. (GTC) has signed an agreement of acquisition of 61 000 sqm site in 14th District of Budapest. In 2009-2010 the company plans to develop on the site 58 500 sqm housing estate.

The purchased land is located in a prominent and popular residential 14th District of Budapest – Zuglo, in vicinity of two main transport axes, 500 meters from planed metro station at Bosniak Square and next to Paskal Thermal baths and Spa resort.

The cost of the acquisition valued euro 17,5 mln. The construction of the residential middle-class complex will cost euro 75 mln.

The commenced investment is the third in GTC residential portfolio in Hungary, after River Loft and Sasad Resort. In Hungarian capital, the company also invests in office spaces. In the next few years GTC will offer the office space in: Spiral, GTC Metro, Szeremi Gateway, Renaissance, which will join previously constructed Centerpoint. The total GTC investments in Hungary amounts to euro 494 mln. Developer portfolio in the country comprises 331 000 sqm residential and office space.

New GTC investment in Bucharest

GTC’s residential portfolio expands by 67,000 sqm. GTC strengthens its position on the Romanian market, developing residential property of 370,000 sqm

GTC Romania has acquired a 66.6% share of a company which plans to develop a new residential project of 100,000 sqm. GTC residential properties in Romania under development have increased to 370,000 sqm.

GML American Regency Pipera S.R.L., the company whose shares were purchased by GTC, holds a plot of 5.4 hectares. The site is located in the popular and rapidly growing northern district of Bucharest, in the vicinity of the American School. GTC plans to build 100,000 sqm of mid-upper-class apartments there. The investment is going to be developed in two stages, 50,000 sqm each. The first stage of the investment is planned to be completed in 2009, the second one in 2010.

GTC Romania, as the major shareholder of the investment, will also manage the project for a management fee of 5% of the project costs. GTC paid EUR 11.1 mln for 66.6% of the company’s shares.

Romania is one of the most important markets in GTC’s portfolio. Four projects are currently under development in the country: two projects in partnership with the REEFF – a fund managed by Deutsche Bank: Rose Garden (85,000 sqm) and Felicity (130,000 sqm), Jasmine Park (30,000 sqm) and Green Dream (25,000 sqm), which are being executed by GTC.

The new investment will be GTC’s fifth project in Romania and will increase residential portfolio developed by GTC to 370,000 sqm (of which 230,000 sqm belongs to GTC Romania).