Gallery Stop in the Platinium Business Park

Modern office space is not only a steel and glass structure, cold and devoid of emotions. Until the end of this year, the lobby Platinium Business Park in Sluzewiec – a district of Warsaw – will act as an art gallery. It is a beginning of a Gallery Stop initiative prepared by the office complex developer – Globe Trade Centre S.A.

 On 25 November this year, an exhibition of works by Frederick Bidigare – an architect and a lecturer at the architecture departments of the Detroit University and the Technical University of Warsaw and a painter – was held in Platinium Business Park. His works have already been displayed in Mercedes headquarters in Berlin as well as in private collections in Europe, Asia and the United States.

Frederick Bidigare works of art presented in Platinium Business Park include more than 20 paintings. We can see abstractionist paintings there as well as ones referred to by the artist as the “developed portraits”.

I do not strive to attain any specific stile – I constantly discover new means of expressing art. Painting is an activity that requires high level of concentration and hard works, but the satisfaction I derive from it is enormous. Looking at what I have achieved over the last ten years, I see not only architectural structures in these paintings, but I also have a feeling of “organized chaos” – those are key elements of my works” – says Frederick Bidigare.

The exhibition opens the Gallery Stop cycle presented in GTC office buildings. The project concept is based on creating an inspiring and creative working space, far from the stereotypical “work&go” idea.

The key idea of Platinium Business Park assumes creating an office complex friendly to the tenants in all its aspects. Thanks to top class architecture, modern technical solutions and high quality of execution, GTC developments often change the outlook of places where they are built. „Gallery Stop” is a further element to add to the concept of an office as a place not only geared towards business relationships, but also shaping positive interactions between people, creating lifestyles and appreciating individualities.

Frederick Bidigare’s works can be admired in the lobby of Platinium Business Park in Domaniewska Street 42/44 in Warsaw. The exhibition will continue until the end of this year.

GTC achieved EUR 58.3 m profit in Q3 2008

Globe Trade Centre S.A. (GTC) announced its Q3 2008 financial results. For the three-month period ended on 30 September 2008, revenues grew 87% QoQ to EUR 35.8 m, while profit increased 36% QoQ to EUR 58.3 m. Total equity was EUR 1.134 bn, while total assets exceeded EUR 2.421 bn.

  • Revenues reached EUR 35.8 m: 87% QoQ increase
  • The company enjoys high liquidity, with EUR 210 m in cash and equivalents
  • EUR 512 m in bank financing has been secured for construction of new projects

The growth in revenues from rental operations to EUR 18.1 m (vs. EUR 16.5 m in Q2 2008) resulted from an increase in rental revenues in the existing buildings as well as commencement of rent payments in developments newly completed throughout the year.

The delivery of flats in the first phases of Rose Garden in Bucharest and Park Apartments in Belgrade contributed to an increase in revenues from residential sales to EUR 17.7 m (vs. EUR 2.7 m in Q2 2008). The gross margin on sale of residential units was 25% in Q3 2008.

Profit (before tax) from revaluation of the existing investment property portfolio was EUR 46.5 m, while growing rental income compensated for increasing investment yields. The main contributor was Galeria Mokotów, where an outstanding increase of net operating income by 30% YoY resulted in a revaluation profit before tax of EUR 35 m.

In Q3 2008 GTC recognized a gain from completion of the second building (9,400 sqm NRA) in Platinium Business Park in Warsaw. The profit before tax was EUR 14.5 m, reflecting a development margin of 71%.

Also in Q3 2008, the profit from completion of the first part of GTC Square Phase 1 in Belgrade (total 23,000 sqm NRA) was recognized in the financial statements. The profit was EUR 9.8 m, while the gain on the remaining part of the building is expected to be booked at a later stage.

GTC maintains its strong financial position: EUR 210 m in cash and cash equivalents was held as of 30 September 2008, while the long-term debt to total assets ratio stood at 39%. In addition the maturity of the debt provides a solid balance sheet structure, with approx. 75% of debt expiring in 2013 and later and weighted-average debt maturtiy of approx. 6 years. The average cost of financing is 6.4 %.

GTC’s financial standing and long-term relations with leading financial institutions, its track record and the high quality of its real estate projects allowed the company to secure financing for new developments even during turbulent times on the credit market. The total value of loans obtained for projects that are under construction is EUR 512 m.

GTC’s management identified the turbulent period in the real estate and financial markets at an early stage. Since 2006 the company has sold investment property worth approx. EUR 500 m, raised PLN 1.15 bn in non-secured bonds with a 5- and 7-year maturity, and slowed down purchases of land for new projects at the end of 2007.

As part of its financial strategy, GTC has been using its equity for the purchase of land and non-recourse loans with a conservative loan-to-value ratio (LTV) for development of new projects. Such prudent financial management has allowed for well-balanced growth, where dynamic value creation was achieved along with a healthy structure of its balance sheet.

GTC is actively analyzing its development schedule, adjusting the company’s expansion plans and operations to suit the changing business environment.

No new residential projects are planned to be commenced unless the trends in residential markets indicate that a recovery is imminent. At the same time, several residential projects will be converted to office developments. As revenues from current residential projects are recognized, the share of residential projects in the GTC portfolio will fall to 18% (in sqm) by the end of 2009.

Construction of office and retail projects is commenced only when financing is secured and leasing progress indicates that the building is being successfully marketed.

“GTC has been active in the region since 1994,” said Eli Alroy, Chairman of the GTC Supervisory Board. “Our experienced managers went through several market slowdowns before and know how to operate in turbulent markets. GTC’s operations are well diversified in terms of geography and sectors, and also in terms of our business partners such as banks and general contractors.
We feel very well prepared for tough times in the regional real estate markets.”