GTC delivers strong top-line growth in 2009

• Operating revenues increased by 36.5% y-o-y to EUR 156.4m

• EUR 139.4m net loss in 2009 resulted from negative revaluation of investment property and land

• High cash and deposits position – EUR 215m as of 31 December 2009

• Long-term debt to total assets maintained at a moderate level of 54%

• Only 5% of debt matures in each of the next 2 years, while 56% of debt matures in 2015 and onwards

Globe Trade Centre S.A. (GTC) has published its 2009 annual financial statements. Rental revenues increased 33.5 % y-o-y to EUR 96.2m. Such strong rental growth reflects the quality of GTC’s office and retail assets and its resilient performance despite an adverse economic environment. Gross margin from operations grew to EUR 85.2 m (+36% y-o-y). Total assets were EUR 2.6bn, while the value of investment property reached nearly EUR 2bn at the end of 2009.

Profit and Loss

The margin on rental operations increased to 77% (from 74% in 2008), mainly due to higher occupancy in newly completed projects.

Residential sales income increased to EUR 60.1m (+42% from EUR 42.5m in 2008), as a result of successful delivery to buyers of residential units sold in 2008 and 2009. Gross margin on sales was maintained at about 20%.

Negative trends in rents and expansion of investment yields resulted in a EUR 172.3 m revaluation loss in 2009.

“GTC revalues its investment property portfolio in a transparent manner, in order to present its market value as assessed by independent appraisers,” explained GTC Finance Director Erez Boniel. “Due to yield expansion in 2009 and a decrease in estimated future rental values (ERV), mainly in 4Q 2009, GTC has provided for an accounting loss in its 2009 financial statements. This has no impact on the operating income and our cash flow. GTC continues to maintain a high cash balance and moderate leverage, and benefits from the distant maturity of its debt.”

Finance and Investment

GTC continued to secure funding at low cost. Throughout 2009 the company raised more than EUR 400m of new loans for project and investment financing, capitalising on its excellent track record and long-established relations with leading European banks. The average cost of the existing debt on GTC’s balance sheet stands at 6.1%.

In August 2009 Galeria Mokotów, GTC’s flagship shopping centre in Warsaw, was granted a refinancing loan in the amount of EUR 205m.

Eli Alroy, Chairman of the GTC Supervisory Board, said: “GTC’s operational results confirm its ability to perform efficiently in an economic downturn. GTC’s management team proved that even in such difficult times the company is able to raise new financing and complete large-scale, investment-grade projects. We believe that CEE property markets will start recovery in 2010, both in terms of tenant demand as well as investment transaction volume. GTC is in the leading position to benefit from the positive trends in Poland and other countries in the region.

Development

In 2009 GTC successfully completed numerous prime commercial assets.

In July 2009 Kazimierz Office Centre in Cracow was delivered, with more than 90% of the space leased, mainly to State Street (12,000 sqm) and Ernst & Young (1,000 sqm).

Galeria Jurajska, the first modern shopping centre in Częstochowa, with 49,000 sqm of retail space, opened in October 2009. Galeria Jurajska was 95% let upon completion and boasts an impressive tenant mix, including such names as Peek & Cloppenburg, Zara, H&M, C&A, Reserved, Cinema City and Alma Market.

In 4Q 2009 GTC completed City Gate, a landmark office complex in Bucharest. It comprises two Class A office towers with a total net rentable area of 44,000 sqm. City Gate has attracted such renowned tenants as Millennium Bank, Romtelecom, Rompetrol, Microsoft and Hoffman-La Roche. Currently the complex is more than 80% leased, with advanced negotiations for the remaining 20% of the space.

In December 2009 GTC handed over the third building in Platinium Business Park in Warsaw. 80% of the space has been leased so far to reputable tenants such as TUI, CBRE Facilities Management, Panasonic and Artegence among the others.

In total, GTC has completed to date an office and retail portfolio of 455,000 sqm of net rentable area. In addition, GTC has 240,000 sqm of office and retail space under construction, as well as 90,000 sqm of residential space, scheduled for completion during 2010–2011.

In 2009 GTC seized the opportunity to increase its share in two large projects. In City Gate the share of GTC was increased to 59%, while in the retail project Galleria Burgas the company bought out its minority shareholder and now holds a 100% stake. The total cost of those two investments was approximately EUR 12m.

GTC will further use its liquidity and secured debt facilities to explore new opportunities in the markets where it is currently operating, both in terms of consolidation of its current assets as well as new acquisitions.

In 2010 the company plans to start construction of office buildings in Warsaw and Bucharest, and shopping malls in Osijek, Croatia, and Burgas, Bulgaria. Together with the completion of buildings under construction and potential acquisition of new projects, GTC will invest EUR 200m to 300m during 2010.

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 750 000 sqm of net space and currently is the owner of completed commercial property with a combined net area of about 455 000 sqm. GTC also holds an impressive portfolio of investment at various stages of development which will facilitate the construction of 1.8 million sqm of commercial and residential space. GTC’s total assets exceed EUR 2.6 billion.

GTC’s shares are listed on the Warsaw Stock Exchange on the prestigious WIG20 index. The company’s assets are also included in the international MSCI index and Dow Jones STOXX Eastern Europe 300 index, as well as the GPR250 index which comprises the 250 biggest and most liquid real estate companies of the world. Among GTC’s shareholders are many of the biggest Polish and international institutional investors.

Panasonic leased 1400 sq m of space in Platinium Business Park

• One of the world’s biggest manufacturers of electronics will open its offices in a prestigious office complex in Warsaw

• Panasonic has rented nearly 1400 sq m of space in Platinum Business Park erected by GTC S.A.

Globe Trade Centre S.A. (GTC) has concluded office space lease transaction with the Polish branch of Panasonic. The electronics giant will occupy almost 1400 sq m in the third building of the Platinium Business Park complex in Warsaw.

Panasonic is one of the biggest manufacturers of consumer and industrial electronics in the world. This Japan-based company employs over 300.000 workers worldwide. Shares of the company are listed on the Tokyo and New York stock exchange. In 2009, Panasonic has been awarded the 89th place in Forbes magazine’s ranking of 2000 largest companies in the world. The Polish branch is also responsible for the management of the company’s business operations in Baltic countries – Lithuania, Latvia and Estonia.

The recently concluded agreement pertains to the rental of nearly 1400 sq m of space in the third building of Platinum Business Park – a modern office complex located by the intersection of Domaniewska street and Wołoska street in Warsaw. Panasonic Poland will move into the new offices in Platinium Business Park in July this year.

“We are proud that such a prestigious partner, one of the biggest international brands, selected offices developed by GTC for the base for its expansion in Central and Eastern Europe. This is the best recommendation of Platinium Business Park to prospective tenants.” says Piotr Kroenke, CEO of GTC S.A.

Third stage of the Platinium Business Park complex was completed in late 2009. The building provides 11 400 sq m of space, with 80% of that amount already rented. The remaining space is currently subject to advanced negotiations.

Current tenants of the third building of Platinium Business Park include: TUI, CB Richard Ellis Facility Management, Artegence, Starlink, Bibby Financial Services and Communication Unlimited. The list of tenants of the first two buildings comprises among others: Leo Burnett, Levi Strauss, Saatchi & Saatchi, or Zenith Optimedia.

The final shape of Platinum Business Park will comprise 6 buildings, providing a total area of 70 600 sq m of modern office space. The complex is a perfect location for companies that seek the possibility to expand their business within one office park. GTC plans to finish the fourth building of Platinium Business Park(12 700 sq m of rentable space) next year.

The location of the complex, in the heart of the business part of the Mokotów district, guarantees convenient communication with the centre of Warsaw and the nearby Okęcie international airport. Platinium Business Park is easily accessible by car as well as by public means of transportation. Tenants of the three buildings that have been completed so far, have a 650 space parking lot available at their disposal

Platinium Business Park was constructed with the use of highest quality materials. The architectural and structural solutions employed, improve the thermal economy of the building and allow for a more effective usage of the air conditioning and heating systems. The structure of the building and the materials used, guarantee an optimal illumination of the building’s interior with natural sunlight. Moreover the modern technological solutions applied in Platinium Business Parkprovide the highest comfort of work in its offices while being very energy-efficient.

Additionally, Platinium Business Park comprises vast green areas with a lake located in the central point.

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 412 000 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.

Eli Alroy honoured with the CEEQA Real Estate Lifetime Achievement award

• Chairman of the Supervisory Board of GTC has been honoured with the CEE Quality Awards Real Estate Lifetime Achievement prize

• Eli Alroy has been commended for his activities in the CEE region

• Eli Alroy has been leading GTC since 1995

Eli Alroy, Chairman of the Supervisory Board of Globe Trade Centre S.A. (GTC) has been honoured with the CEE Quality Awards Real Estate Lifetime Achievement prize. The award presentation ceremony will be held on 3rd March 2010, during the CEEQA Gala at the Royal Castle in Warsaw.

Eli Alroy has been honoured with the CEEQA Real Estate Lifetime Achievement award for his commitment to the advancement of the developer industry in Central and Eastern Europe. The jury of the contest, comprising of esteemed real estate and finance specialists, commended the Chairman of GTC’s Supervisory Board for his exceptional experience, vision and ability to lead a team of professionals who contributed to the progress that GTC has made.

„It is a great honour to be appreciated by the profession, for activities which I find to be a great pleasure to perform. Conducting operations on CEE markets is a demanding job but also a very rewarding one. I am glad that GTC can contribute to the changes and development that takes place in this part of Europe” – said Eli Alroy when notified of the jury’s verdict.

CEE Real Estate Quality Awards, granted by the CEE Insight Forum, are one of the most prestigious distinctions of the industry in Europe. This year the award will be granted for the seventh time. CEEQA Lifetime Achievement is the only award who’s laureate is proclaimed before the gala.

Eli Alroy – activities

Eli Alroy has a many years’ experience in managing real estate developer companies. He was one of the pioneers of Poland’s modern real estate industry. His ties with GTC go back to the mid 1990s. Under Eli Alroy’s command, the company has erected a modern office complex which at that time could be considered truly innovative in Poland – Mokotów Business Park in Warsaw. When in 2006 the complex has been sold for $ 287 mil., it was the largest investment of that kind in Central and Eastern Europe, with its 9 buildings providing jointly 107,000 sq m of area. Moreover, Mokotów Business Park has set a new trend for the revitalization of post-industrial urban areas in Poland.

During the following years of Eli Alroy’s command in the company, GTC has grown to become an international corporation and one of the leading and most high-profile developer companies in East-Central Europe. Currently, they are managing over 130 projects in 10 countries of the region: Poland, Czech Republic, Hungary, Serbia, Croatia, Bulgaria, Russia and Ukraine.

Eli Alroy’s management skills and long-term business strategies helped GTC to become one of the leading trend setters of the real estate market in Poland. In 2004, the Company has become the first developer company to enter the Warsaw Stock Exchange. GTC’s shares are listed on the prestigious WIG20 index. The company’s assets are also included in the international MSCI indexes, as well as the GPR250 index which comprises the 250 biggest and most liquid real estate companies of the world. Among GTC’s shareholders are many of the biggest Polish and international institutional investors.

In all of its countries of operation, GTC is widely respected for the highest quality of its office, commercial and residential projects.

In addition to Mokotów Business Park, the company has executed many significant and recognizable office projects, some of the examples being: three buildings of the Platinium Business Park and the Nefryt and Topaz office blocks in Warsaw, GTC office Center in Krakow, Avenue Center in Zagreb, CenterPoint and Spiral in Budapest, GTC House in Belgrade or CityGate in Bucharest.

GTC is also a major player on the commercial space market. Galeria Mokotów (63,500 sq m) was the first modern shopping centre in Poland. In the following years it was joined by Galeria Kazimierz in Krakow, Galeria Jurajska in Czestochowa, as well as by other retail and entertainment centres erected outside of Poland – Avenue Mall in Zagreb and shopping centres in three medium-sized cities in Romania.

Under Eli Alroy’s command, GTC skilfully endured the real estate market crisis between 2001 and 2003.

The assets and factors that allowed GTC to face and endure the latest economic crisis are: its team of dedicated specialists who appreciate and understand the requirements of modern real estate markets, its size, sector-wise and geographical diversification of operations, as well as vast financial reserves and a safe level of debt.

Eli Alroy was honoured with numerous, prestigious awards of the industry, with the CEE Real Estate Industry Professional of the Year award granted to him in 2007.

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 412 000 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.

65% of area in Platinium Business Park III rented to date

• GTC has leased 2,500 sq m of office space in the third building of the Platinum Business Park complex

• The new tenants are companies from the finance and advertising business

• 65% of the building’s area has been rented so far

In February this year, Globe Trade Centre S.A. (GTC) has signed lease agreements for over 2,500 sq m of office space in the third building of the Platinum Business Park complex in Warsaw. New tenants include Artegence, Bibby Financial Services and Starlink.

Other companies will be arriving in Platinium Business Park III in the near future. Offices of Artegence, an interactive agency, will occupy 1,700 sq m of area, whereas Starlink media house has rented 350 sq m of space.

Another new tenant is the international Bibby Financial Services – a leading factoring services provider for small and medium companies. Bibby Financial Services has rented 500 sq m of area.

The third building of the Platinum Business Park complex, finished at the end of 2009 provides 11,400 sq m of total rentable area. 65% of this area has been leased so far. Remaining tenants include: TUI, CB Richard Ellis Facility Management and Communication Unlimited. In the near future, rental agreements will be concluded for additional 1,500 sq m of area.

Platinium Business Park is a modern office complex, located by the intersection of Domaniewska St. and Wołoska St. in Warsaw. During the recent years, the object has been receiving positive opinions from tenants and experts, who appreciate the inspiring design of the common sections and vast green areas.

The Platinium Business Park III building has been constructed with the use of materials that decrease energy losses and allow for a more effective use of the air conditioning and heating systems. The location and structure of technical shafts additionally improves the thermal economy of the building.

The structure of the building and the materials used, guarantee an optimal illumination of the building’s interior. Platinium Business Park III is distinctive with a large portion of its area being illuminated with natural sunlight.

The building is fitted with a state-of-the-art elevator calling system that guarantees the highest efficiency of service combined with energy saving properties.

Many pro-ecological solutions were introduced in Platinum Business Park as well. The lake that is located in the central area of the complex has a positive effect on the hydrographical conditions of the area by collecting rainwater from the surroundings. It also introduces a special microclimate.

The final shape of Platinum Business Park will comprise of 6 buildings providing a total area of 70,600 sq m. The tenants of three buildings that have been erected so far have a 650-space parking lot available at their disposal.

The tenants of the first two buildings of the Platinum Business Park complex include: Levi Strauss, Saatchi & Saatchi, GE Medical Systems, Expander, Zenith Optimedia, IC Companys, Helm, Electrabel, Trio Management, Peugeot, Crédit Agricole, Finamo, mBank, and OKI Printing Solutions Polska.

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 412 000 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.

New stores in Galeria Jurajska

• New stores opened in Galeria Jurajska

• Bata, Camaieu, Clarks, Gino Rossi and Simple among the new tenants of Galeria Jurajska

At the beginning of the year, further renowned international and Polish brands became tenants of Galeria Jurajska. The customers can now visit the Gino Rossi shoe store and the Simple store. The Camaieu shop is going to be opened soon, along with two shoe & accessories stores – Bata and Clarks.

GTC S.A., the company that owns and manages Galeria Jurajska, has concluded lease agreements for over 700 sq m of commercial space. The Gino Rossi shoe store (60 sq m of area) has already been opened in Czestochowa’s first modern shopping centre. Men’s and women’s footwear, purses, leather accessories and women’s fashion are available in the store.

A Simple retail outlet (80 sq m) has also been opened in Galeria Jurajska, offering elegant and stylish fashion for women.

Other stores soon to be opened in Galeria Jurajska include: Camaieu (220 sq m), Bata (200 sq m) And Clarks (125 sq m). Camaieu is one of the leading brands of casual-style clothing for women. Bata and Clarks, are internationally-recognized manufacturers of men’s, women’s and children’s footwear as well as leather accessories.

Additionally, customers can visit the recently-opened Trafika newsagent.

For more information concerning Galeria Jurajska, please contact: Anna Malcharek, Managing Director for GTC S.A. Shopping Centres, phone no. 0-600 882 942, e-mail: amalcharek@gtc.com.pl

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 Group – Pizza 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 700,000 sq m of net space and currently is the owner of completed commercial property with a combined net area of about 412,000 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.