- EUR 90m refinancing agreement signed with Bank Pekao S.A.
- EUR 23m in new funding above previous debt
On 4 December 2008, GTC Galeria Kazimierz Sp. z o.o. signed a refinancing loan agreement with Bank Pekao S.A.
The loan of EUR 90m refinances a previous loan of EUR 67m, providing the company additional funding of EUR 23m. The loan-to-value ratio upon drawing the loan will be about 53%, in line with the ratio for GTC’s other completed assets.
Globe Trade Centre S.A. holds a 50% interest in GTC Galeria Kazimierz Sp. z o.o., while the remaining 50% belongs to a fund managed by Quinlan Private.
GTC Galeria Kazimierz Sp. z o.o. owns the Galeria Kazimierz shopping center in Cracow. The mall offers 36,000 sq m of modern retail space, with the Alma flagship food store, a Cinema City multiplex, Zara, H&M and Reserved as the anchor tenants. In January 2009 the renowned British fitness center chain Pure is going to open a 2,000 sq m facility there.
The term of the loan is 10 years, with a 30-year amortization period, and an interest rate based on the 1 month Euribor rate plus a margin.
“The terms of the loan reflect the quality of the underlying asset and the financial standing of GTC,” said Justyna Kędzierska, Deputy Director of Project Financing at Bank Pekao S.A. “Bank Pekao S.A. has a long-established relationship with Globe
Trade Centre S.A., and we hope to continue our cooperation in other projects in the future.”
GTC has secured over EUR 500m for financing development of its real estate projects in the region. The company cooperates with 11 banks. As of the end of Q3 2008, GTC held EUR 209m in cash and equivalents, while the long-term debt to total assets ratio was 39%. Such a strong financial condition allows GTC to secure financing from banks even during turbulent times on the credit market.