Galeria Jurajska voted the Best Shopping Centre Development in 2009

GTC’s Galeria Jurajska in Częstochowa, developed by Globe Trade Centre S.A., was recognised by the Construction & Investment Journal as the Best Shopping Center Development 2009.

The Best Shopping Center Development award is granted to the best retail projects in Poland. Galeria Jurajska, developed by Globe Trade Centre S.A. (GTC), attributes its success to such factors as its excellent location, attractiveness to tenants and customers and the timely and efficient execution of the project.

The international jury, which was composed of executives from the leading property companies, financial institutions and legal firms of the region, elected Galeria Jurajska as the best development project in the shopping centre category in 2009. The Construction & Investment Journal’s award distinguishes real estate projects which meet the highest standards of architectural design, construction and investment practice and are the most popular among their tenants.

This year’s recognition has been already the third award in that category received by the project developed by Globe Trade Centre S.A. The two other winners in the past were Galeria Mokotów in Warsaw and Cracow’s Galeria Kazimierz.

“We make utmost efforts to ensure that each GTC S.A. project is an innovative and safe place, built with the highest attention to details. This award proves that our commitment has also been noticed by the industry leaders. The unique tenant mix of Galeria Jurajska is another proof of recognition” – says Piotr Kroenke, the General Manager of GTC S.A.

The Construction & Investment Journal has been granting its awards since 2002 to leading projects and players of the real estate market in the office, commercial and residential sectors.

Galeria Jurajska is the third investment conducted by Globe Trade Centre S.A. (GTC) in the retail sector in Poland and the first modern facility of this type in Częstochowa. The construction began in February 2008.

Galeria Jurajska is located on the plot with total area of 8.5 ha, situated in the immediate vicinity of national road no. 1, connecting North and South of Poland.

Total area of Galeria Jurajska is 130 000 sq m, of which 49 000 sq m is the retail space, acommodating 200 stores and service points, as well as a multiplex cinema – Cinema City.

The offer of Galeria Jurajska includes stores of the most popular Polish and international brands. For many of them it was a debut on the local retail market. Among others, Alma (3400 sq m), Peek & Cloppenburg (3000 sq m), LPP Group – Reserved, Cropp, Home & You, Esotiq, House, Mohito (2900 sq m), Mega Avans(2800 sq m), Inditex group – Zara, Bershka i Stradivarius (2600 sq m), H&M (1830 sq m), C&A (1800 sq m), Euro RTV AGD (1300 sq m), Intersport (1200 sq m), Dziecko (1000 sq m), Empik (800 sq m), KappAhl (750 sq m), New Yorker (730 sq m), Cubus (680 sq m), S. Oliver (565 sq m), Smyk (400 sq m), Superpharm (400 sq m), Rossmann (360 sq m), Kakadu (360 sq m), Sephora (345 sq m), Amrest GroupPizza Hut (315 sq m), Douglas (310 sq m), Mango (275 sq m), Mc Donald’s (150 sq m), Max Mara (120 sq m), Trussardi (120 sq m), Apart (120 sq m), KFC (90 sq m), or Burger King (85 sq m), have opened their stores in Galeria Jurajska.

The food-court is located on the first floor of Galeria Jurajska. To provide comfort for customers, also a car park for nearly 1900 vehicles has been built.

The opening of Galeria Jurajska took place on 3rd of October 2009. The mall has been visited by 650.000 people in October.

GLOBE TRADE CENTRE S.A. (GTC S.A.) is one of the leading developers in the New Europe and was established in 1994 in Warsaw. Currently it operates in Poland, Hungary, the Czech Republic, Romania, Serbia, Croatia, Slovakia, Bulgaria, Russia and Ukraine.

GTC develops projects and manages completed properties in three key sectors of real estate: office buildings and parks, retail and entertainment centers and residential sector.

GTC has developed about 650,000 sq m of net space and currently is the owner of completed commercial property with a combined net area of about 360,000 sq m. GTC also holds an impressive portfolio of investment at various stages of development which will facilitate the construction of 1.9 million of commercial and residential space.

GTC gearing up for market recovery

• GTC recorded EUR 116.9m in operating revenues in the first 3 quarters this year
• Rental income grew 33% y-o-y to EUR 65.6m in January–September 2009
• Operating cash before working capital changes more than tripled year-to-date vs. the first 9 months of 2008

Globe Trade Centre S.A. (GTC) has reported its results for the first three quarters of 2009. Operating revenues increased 65% y-o-y, while the gross margin from operations grew 42% to EUR 59.8m.

There was a net loss in the first three quarters of 2009 of EUR 43.6m.

For the 3 months ended on 30 September 2009, GTC achieved operating revenues of EUR 33.4m (vs. EUR 35.8m in Q3 2008), while the gross margin from operations increased to EUR 18.1m from EUR 17.4m a year ago. The operating margin on rental income was maintained at 76%, while the gross margin on residential sales was 12%.

Profit for the period was adversely affected by a decrease in valuation of commercial property. The decrease resulted mainly from softening of rental rates. In Q3 2009 the revaluation loss was EUR 43.9m, bringing the net loss for the period to EUR 34.0m.

GTC’s strategy has been focused on gearing up for the market recovery. The cash burning rate was decreased in January–September 2009 by 55% y-o-y, while at the same time operating cash before working capital changes increased to EUR 43.8m (+250% y-o-y). The cost-cutting measures that the company took last year started to show results: in Q3 2009 the administration expenses were EUR 4m vs. EUR 6.1m in the same period of 2008. The company maintains a favourable debt structure, with 20% of long-term loans maturing in 2014 and 59% in the following years.

“The Q3 2009 results were impacted mainly by the revaluation losses on completed commercial assets,” said Erez Boniel, Chief Financial Officer of GTC. “However most real estate consultants expect stabilization or decrease in investment yields, while rental rates should start bottoming out in 2010. We managed to maintain a healthy balance sheet throughout the global economic crisis, and GTC is now well geared up to benefit from the expected improvement in market conditions.”

The financial crisis brought opportunities for GTC to consolidate its holdings and buy out minority shareholders. Recently the company acquired stakes in City Gate in Bucharest and Galleria Burgas in Bulgaria, bringing GTC’s share to 59% and 100% respectively. Approximately EUR 12m was invested in those two acquisitions.

In Q3 2009 the company completed Galeria Jurajska shopping mall in Częstochowa and City Gate office complex in Bucharest.

Galeria Jurajska opened nearly fully let on 3 October 2009, with more than 100,000 visitors on the first two days. The mall comprises 130,000 sq m total area, accommodating 200 shops on 49,000 sq m of retail space. Its unique location next to Poland’s most important highway and convenient access to public transportation, as well as a large catchment area, have attracted leading international and Polish retailers. Recently the Construction & Investment Journal Awards voted Galeria Jurajska as the Best Shopping Development in Poland in 2009.

In Q3 2009 both towers at City Gate received an occupancy permit. City Gate comprises two buildings, with a total net rentable area of 44,000 sq m. It is located in the northern part of Bucharest, at the entrance to Romexpo exhibition centre, next to a major public transit hub and the main road leading to the international airport. The main tenants of City Gate include Romtelecom, Millennium Bank, Microsoft, Autoitalia, Hoffman LaRoche, Knauf and Global Eye. Currently approximately 75% of the office and retail space has been already been let.

Currently GTC has 263,000 sq m of commercial properties under construction, scheduled for completion in 2009–2011.

“Long-established relations with leading European banks and GTC’s financial strength have allowed it to secure financing for construction of new office and retail developments,” said CFO Erez Boniel. “In view of a forecasted shortage of supply in 2010 and 2011, delivering completed projects in that period may give GTC a competitive edge.”

GLOBE TRADE CENTRE S.A. (GTC S.A.) is one of the leading developers in the New Europe and was established in 1994 in Warsaw. Currently it operates in Poland, Hungary, the Czech Republic, Romania, Serbia, Croatia, Slovakia, Bulgaria, Russia and Ukraine.

GTC develops projects and manages completed properties in three key sectors of real estate: office buildings and parks, retail and entertainment centers and residential sector.

GTC has developed about 700 000 sq m of net space and currently is the owner of completed commercial property with a combined net area of about 410 000 sq m. GTC also holds an impressive portfolio of investment at various stages of development which will facilitate the construction of 1.9 million of commercial and residential space.