GTC sells America House in Bucharest

GTC Romania, a subsidiary of Globe Trade Centre S.A., has sold a 100% interest in America House to a fund managed by IXIS AEW Europe. The transaction was based on a valuation of EUR 120 million for America House.

GTC Romania, through its subsidiaries, has sold a 100% interest in America House, a Class A office building located in the center of Bucharest. The buyer, PBW II Real Estate Fund S.A., is a real estate fund managed by IXIS AEW Europe (IAE), a leading European real estate manager. IAE is a subsidiary of IXIS Asset Management Group, which together with the North American-based AEW Capital Management is responsible for approximately EUR 30 billion of gross assets under management.
The transaction was based on a valuation of America House at EUR 120 million, which implies a yield of 5.55%. The transaction sets a new benchmark for the valuation of commercial property in Romania, indicating that strong yield compression is maintaining its momentum.
Jones Lang LaSalle acted as commercial and marketing adviser for GTC in this transaction.
America House is located in a prestigious business district of Bucharest next to Victoria Square, adjacent to the government headquarters, at the intersection of two metro lines. The building offers 27,000 sq m NRA and has attracted such renowned tenants as Deloitte, Cosmote, S&T, Ericsson, and the Japanese Embassy. The location of the building and the covenants in the lease agreements make America House a prime investment-grade product in Romania.
The sale of shares in America House is part of GTC’s strategy to further diversify its property portfolio both in terms of sector and geographical spread. Today GTC’s portfolio of projects under development in Romania comprises approx. 500,000 sq m of net commercial and residential space (counting only GTC’s equity share).

Avenue Mall in Zagreb starts its activity

250 000 clients visited GTC’s shopping mall in Zagreb during the first weekend of its activity. GTC’s portfolio of completed investments gets richer after the inauguration of the third, after Galeria Mokotow and Galeria Kazimierz, modern shopping mall.

GTC Croatia, subsidiary company of GTC public limited company – leading developer in Central and Eastern Europe, opened its shopping center Avenue Mall in Zagreb, 30th of August 2007. During the first four days of its activity, the facility which is the first shopping mall of third generation in the capital of Croatia, was visited by nearly 250 000 clients and 77 000 of them did it the opening day.

Avenue Mall is an investment realized by GTC Croatia in New Zagreb district – one of the most attractive localizations of the city. The shopping centre is located at the crossing of main communication arteries, next to the route from the city center to the international airport.

The center opened in Zagreb turned future tenants on just from the beginning of the leasing process. As a result – 100% of area was rented in the inauguration day and the biggest international brands opened their shops there – Zara (first shop in Croatia), Bershka, Marks & Spencer, Esprit, Benetton, Calvin Klein, Tommy Hilfiger, Lacoste, Mango and Sephora. Croatian grocery chain KONZUM also opened its flagstore there. Avenue Mall clients’ may additionally use Blitz Cinestar cinema with 9 rooms capable to accommodate nearly 1 800 spectators.

The Gross Rentable Area of the center is 26 500 sqm. net and accommodates 130 shops. The majority of contracts of area leasing in Avenue Mall was signed for next 10 years. Annual financial income from area leasing in the center is estimated at 10 mln euro. Avenue Center – an “A” class office building with 7 000 sqm. of office space was constructed next to the shopping center.

GTC Croatia’s share in retail and office complex is 70%.

International experts from CB Richard Ellis company estimated the value of Avenue Mall at 163 mln euro.

The new GTC investment is also distinctive if considerate its architectural project. It is a perfect example of a facility which not only carries out international standards but is also very friendly for clients. The building was projected by Ed Jenkins from Laguarda.Low architectonic studio which participated in the creation of many shopping centers all over the world – in Russia, Portugal, Spain, Italy, Brazil, China and Japan. The investor could also count on help of Leigh Speakman – a well-known international consultant in questions related to preparation of so-called tenant mix. Consultants specializing in commercial real estate market from Coliers International participated in area leasing process.

In March 2006 the developer bought another attractive 1,2-hectare plot in the district of New Zagreb with an intention of building a shopping and office center with gross net area of 24 000 sqm.. GTC Croatia also participates in an investment on the cost of Istria where apartments of total space of 23 000 sqm., 5-star hotel and professional golf course will arise.

GTC invests actively in the shopping centers sector in the region. Except for finished investments – Galeria Mokotow, Galeria Kazimierz and Avenue Mall, the company realize, individually or in cooperation with partners, the construction of modern shopping malls in Poland, the Czech Republic, Croatia, Romania and Bulgaria. The Gross Net Area of GTC’s participation in those investments is about 300,000 sqm..

GTC continues its expansion in Bulgaria

GTC strengthens its position on the shopping mall market in Central & Eastern Europe. GTC Bulgaria has acquired 66.67% stake in the company developing Galeria Burgas. Investment with net retail space of 36,000 m2 to be completed in 2009.

GTC Bulgaria, a subsidiary of Globe Trade Centre S.A. – a leading developer in Central & Eastern Europe – has acquired shares in a company developing Galeria Burgas, a modern shopping mall being built in the fourth-largest city in Bulgaria (population 270,000). The facility, with a total letting area of 36,000 m2 will produce annual revenues estimated at EUR 9 mln. A complex of 600 apartments will be built next to the shopping mall.

GTC Bulgaria, in which Globe Trade Centre S.A. holds 95% of the share capital, purchased 66.67% of the shares in the investment in the Bulgarian city of Burgas. The developer plans to build the shopping mall on an attractive site in one of the fastest-growing cities on the Black Sea. The rest of the shares will remain in the hands of the reputable local partner.

Total development cost of the mall, with a net area of 36,000 m2 to let, is estimated at EUR 40 mln, including the purchase price for the land. Annual rental revenues should be about EUR 9 mln. The opening of Galeria Burgas is planned for the third quarter of 2009.

A complex of about 600 apartments with a total net area of more than 61,000 m2 is planned to be built next to the shopping mall.

Burgas, the fourth-largest city in Bulgaria, is located on the south-central coast of the Black Sea. Renowned seaside resorts for tourists are located in the immediate vicinity of the city. The city is also an important transit hub; the largest international airport in the country is located just 10 km away, and a well-developed bus network links the city to the whole Bulgarian seacoast. The city itself is an important and lively center for tourism, commerce and industry.

GTC is actively investing in the shopping mall sector in Central & Eastern Europe. In addition to the completed projects of Galeria Mokotów and Galeria Kazimierz in Poland, and Avenue Mall in Zagreb, Croatia, the firm is developing other modern shopping malls in Poland, the Czech Republic, Croatia, Romania andBulgaria. Globe Trade Centre S.A.’s total net share in the area of these investments is more than 300,000 m2.

In the case of Bulgaria, GTC plans to build retail facilities in Varna, Stara Zagora and Burgas with a total letting area of close to 100,000 m2. The steady growth of demand for modern retail space noted since Bulgaria joined the European Union, combined with the significant growth in tourist traffic in the region, assures a high rate of return on investments in this sector.