Moeller Electric in Okecie Business Park

Okecie Business Park – GTC’s new investment – has gained a prestigious tenant.Moeller Electric international company will move to its new office by next Spring

Globe Trade Centre S.A. has gained a prestigious tenant for its office investment -– Okecie Business Park. Moeller Electric will open its Polish office in the first building of the business park by next Spring.

Moeller Electric is an international supplier of systems and components for power distribution and automation in industrial, infrastructure and residential building applications – a company with many years of tradition, founded in 1899 in Koeln. Since 1995 the company has been present to Poland.

In March 2008 Moeller Electric will move to NOTHUS – the first office building in Okecie Business Park complex – a prestigious office investment under realization by Globe Trade Centre S.A. in Okecie district (Warsaw). The new tenant will occupy 1200 sqm of office space.

„Okecie Business Park is a perfect location for companies like Moeller Electric. It is being developed for international corporations which appreciate the quality of office space. Our office investment is the first business complex in Poland arising in such proximity to an airport and with a good access to the city centre at the same time” – says Michal Melaniuk, GTC Commercial Director.

NOTHUS will be the first of seven office buildings within OKECIE Business Park complex, under construction near 17 Stycznia street, in close vicinity of headquaters of LOT (Polish Airlines) and PLL (Polish Airports). This modern business park will be situated between Krakowska Avenue (a main road leading from Warsaw to Lodz, Cracow, Wroclaw and Katowice) and Zwirki i Wigury street – a route leading from the city center to the Okecie International Airport.

NOTHUS will offer about 8850 sqm of office space on seven storeys. 205 parking spaces will be created for future users.

A typical storey will have an area of 1434 sqm and its space was planned to guarantee a maximum working comfort and a flexible arrangement of the interior according to future tenants’ needs.

NOTHUS will be equipped with a modern management system and access control system guaranteed by a professional 24-hour security. Its interior will be provided with air-conditioning, hang-up ceilings and half-opened windows. All toilets and kitchenes will be fully equipped as well.

The project of OKECIE BP was created by APA Kurylowicz & Associates (APA KA) architectonic studio directed by a renowned Polish architect Prof. Stefan Kurylowicz. NOTHUS (as well as other buildings of the complex) will be constructed basing on the shape of the “U” letter. A glassed-in front of the building will guarantee constant inflow of the daylight, open contact with green surroundings and exceptional view of the airport and planes taking off.

The location of the building carries it away from crowded streets but, on the other hand, it ensures an easy access to public transport and offers an unique position with a natural lake and green surroundings. Many relax spaces and lanes network will be created within the complex. According to architects and office space leasing specialists it is a perfect offer for companies which value composure and creative working atmosphere.

Planned development of the communication system around the airport, among others the lengthening of 17 stycznia street in the direction of Poleczki street and then towards Pulawska street, will make the access to main city and national roads easier.

Warbud building company is the general contractor of NOTHUS building. Jones Lang LaSalle and CB Richard Ellis are companies in charge of the space lease of the building.

The construction of the building will cost around 20 mln euro. The total cost of the whole Okecie Business Park is estimated at 120 mln euro.

Platinium Business Park attractive for

Globe Trade Centre S.A. (GTC) has rented the majority of office space in the first building of Platinium Business Park. Leo Burnett, Levi Strauss, GE Medical Systems, Trio Management, Expander and Schrack Seconet are among the future tenants.

The construction of the first building is to be completed by the end of December 2007.
International advertising agency Leo Burnett will occupy 2000 sqm. of office space. GE Medical Systems (medical equipment sale and service) office will have a yardage of 1500 sqm. Trio Management consulting company will rent 1400 sqm. and the tenancy agreement with Polish branch office of Levi Strauss clothing company amounts to 1200 sqm. Expander – financial consultancy company has hired 500 sqm. and Schrack Seconet – a well-known producer of fire-alarm systems – about 350 sqm. Including advanced negotiations with successive tenants, 95% of area has already been rented.
„Huge interest of exacting tenants – leader companies in their fields, confirms the rightness of assumptions of Platinium Business Park conception. We offer to our tenants buildings of modern architecture and high technical standard, situated in prestigious location and guaranteeing comfortable working conditions. The construction of following stages will make possible the expansion of quickly developing tenants within one office complex” – says Piotr Kroenke, General Director, Globe Trade Centre S.A.
Platinium Business Park is an investment that has been realized by GTC in Warsaw on Domaniewska and Woloska street intersection. The complex of 5 office buildings will offer together about 45000 sqm. of A-class office space, situated in prestigious and easily-accessible location, next to Galeria Mokotow shopping center, 10 minutes away from Okecie International Airport and 15 minutes from the city center. First three buildings of Platinium Business Park will consist of 6 levels with an average area of more than 1300 sqm. for offices and the ground floor with about 800 sqm. of shopping and service space. All buildings will be provided among others with lifted floors for structural wiring and will satisfy the highest technical standards. Glass fronts of buildings will guarantee an effective access of daylight. A courtyard with artificial pond and green surroundings will be the central point of the complex, perfect for relax and meeting for people working in buildings of Platinium Business Park.

The project of Platinium Business Park was prepared by JEMS Architekci architectonical studio. Warbud building company is the general contractor for the construction of first two buildings of the complex. International company Cushman Wakefield is the only company in charge of the space lease at buildings.

GTC delivers record profits in Q3 2007

Globe Trade Centre S.A. (GTC) earned a record profit in Q3 2007 of nearly EUR 113m, while the profit attributable to equity holders was EUR 106m.

Revenues grew to about EUR 30m – an increase of 64% from a year ago. The total portfolio of pipeline projects under development exceeds 1.7m sqm of net building rights.

The total year-do-date profit was EUR 202m, with the year-to-date profit attributable to equity holders reaching nearly EUR 174m.

The profit from revaluation of commercial property contributed largely to the record profits. The increased value of GTC’s completed assets resulted from a combination of both continuing yield compression and rental growth across the region.

In September 2007 the America House building in Bucharest was sold for EUR 120m, at a record-low yield of 5.55%. The transaction contributed an additional EUR 30m to the Q3 2007 profit.

The sale of the Lighthouse building in Prague was concluded at an asset valuation of EUR 76.5m, reflecting an investment yield of 5.65%.

In August 2007 GTC Croatia opened the Avenue Mall in Zagreb. The development includes a 27,000 sqm NRA modern shopping center and a 7,000 sqm NRA office tower. The mall became a landmark shopping destination immediately after opening, attracting 270,000 clients in the first four days of business. The property has been valued at EUR 190m, based on an investment yield of 6.25% for the retail part and 7% for the office element.

These transactions are market-endorsed evidence that the property developed by GTC meets the highest investment-grade standards and is able to deliver impressive returns to GTC’s shareholders.

The investment yields achieved in these transactions indicate a strong yield compression in Southeastern Europe. GTC sees SEE markets as targets for its accelerated expansion.

Serbia appears to be one of the markets where positive convergence trends can be expected. GTC has completed one office building there, GTC House (13,500 sqm), and by the end of Q1 2008 is expected to deliver two more projects: 19 Avenija (17,400 sqm) and GTC Square (23,000 sqm).

Office markets across the region indicate steady demand from tenants, with the Polish market standing out with its strong take-up and growing rental rates. GTC’s office buildings Platinium Business Park 1 (9,000 sqm) and Nefryt (15,000 sqm) in Warsaw, Globis Wrocław (14,000 sqm), and Edison (10,000sqm) in Cracow are being successfully leased and are expected to be fully let before their completion, which is scheduled in the next two quarters.

GTC is poised to benefit from the increased demand from retailers for high-standard retail space. The company holds interests in three completed top-quality shopping centers: Galeria Mokotów in Warsaw, Galeria Kazimierz in Cracow, and Avenue Mall in Zagreb. Pipeline projects under development include malls in Poland, the Czech Republic, Romania, Bulgaria and Serbia. Upon completion of the projects that have been already secured, GTC‘s retail portfolio is expected to reach 360,000 sqm NRA (counting only GTC’s equity portion) in 15 shopping centers. Nonetheless, the company is actively seeking more acquisitions to increase GTC’s retail portfolio further.

The company continued to successfully develop and sell residential property in the upper-middle and upper segments of the market.

In Q3 2007 the majority of the third phase of Warsaw’s Osiedle Konstancja development was completed. As a result the company recognized revenues of EUR 15m and gross profit of EUR 6.4m, achieving an impressive gross margin on sales of 43%.

GTC’s accounting policy provides for recognition of revenues and profits from the sale of residential property only upon full completion and hand-over. Therefore the financial results of several projects that are already close to completion or sold in significant part will be recognized in 2008 and 2009.

In Belgrade’s Park Apartments, 95% of units have been sold and the project is to be completed in the coming months. Other projects that are scheduled for completion in 2008 include the first phases of Sasad Resort in Budapest, Rose Garden and Felicity in Bucharest, Prague Marina in the Czech Republic, and Vinohradis in Bratislava. The total value of apartments that have been sold or reserved in those projects is EUR 182m, which has not been recognized yet in GTC’s income statement.

In 2007 the company secured projects in Hungary, Romania, Serbia and Bulgaria with total net building rights of 580,000 sqm. New acquisitions are expected to maintain this rapid pace, and GTC’s management has set a long-term target to acquire a minimum average of 600,000 sqm of net building rights every year.