Avon to occupy 1,000 sqm at Okęcie Business Park

• Avon Polska is one of the new tenants of Okęcie Business Park

• The company rented 1,000 sqm of space in the Zephirus building

• Avon plans to move to its new offices in September of this year

Globe Trade Centre S.A. (GTC) and Avon Polska have concluded a lease for 1,000 sqm of office space in the Zephirus building at Okęcie Business Park in Warsaw. In September of this year, Avon will be opening its Polish Customer Service Office in the building.

Avon has been present on the Polish market since 1992. The company manufactures and distributes popular cosmetics and associated products.

Okęcie Business Park is the first business park to be located in the vicinity of Warsaw Chopin Airport. The complex will ultimately comprise six buildings with a total leasing area of 55,000 sqm. Two buildings—Nothus and Zephirus—have been finished so far, with a third one (Corius) in the preparatory stages of construction. The Zephirus building, where Avon will have its offices, provides a total of 9,600 sqm of office space.

All buildings at Okęcie Business Park are Class A office blocks, with raised access flooring, modern building management systems and access control systems, as well as a professional security service. Some of the additional facilities introduced for the convenience of the tenants include full air conditioning, suspended ceilings, and soundproof tilt windows.

A significant advantage of Okęcie Business Park is its location, providing convenient access to Poland’s biggest airport as well the city centre and the Mokotów business district.

“Office centres located in the vicinity of airports in major metropolitan areas are increasingly popular, especially among large international corporations,” said Piotr Kroenke, Management Board member and General Manager at GTC. “The infrastructure development processes that are currently under way around Okęcie Business Park, at the airport as well as expansion of the nearby roads and railroads, are a significant asset for potential tenants.”

The architectural design of Okęcie Business Park, which reflects both the natural advantages of the surroundings (with a pond and green areas) and the vicinity of the airport, was created by the prominent APA Kuryłowicz & Associates architectural studio, headed by renowned Polish architect Prof. Stefan Kuryłowicz.

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 centres, and residential.

GTC has developed about 800,000 sqm of net space and currently is the owner of completed commercial property with a combined net area of about 515,000 sqm. GTC also holds an impressive portfolio of investments 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, in the prestigious WIG20 index. The company’s shares are also included in the international MSCI index and the 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.

Philips and Berlitz – new tenants at Centrum Biurowe Francuska

• The first building at Centrum Biurowe Francuska has been delivered to tenants

• GTC has rented another 330 sqm of office space in the building

Globe Trade Centre S.A. (GTC S.A.) has concluded lease agreements in July for office space at Centrum Biurowe Francuska with Philips Lighting Polska and Berlitz. Philips has rented 200 sqm of space and Berlitz 130 sqm. The first building at Centrum Biurowe Francuska has already been put into commission.

Philips Lighting Polska is the leader of the Polish lighting market and the largest lighting manufacturer in the world within the Philips group. The company is one of the most significant foreign investors in Poland and one of the largest Polish exporters. The offices of Philips Lighting Polska will occupy about 200 sqm of space at Centrum Biurowe Francuska.

Berlitz Polska is one of the branches of the international company offering foreign language teaching services, translation, and language training worldwide. At Centrum Biurowe Francuska, Berlitz will open a facility devoted to training for top management. The Berlitz offices will take up 130 sqm of the building.

Philips are Berlitz are the latest tenants at Centrum Biurowe Francuska. Other tenants in the office building include Nordea Bank, which occupies 500 sqm.

Centrum Biurowe Francuska is located in the centre of Katowice, at ul. Francuska 34. The first building in the complex houses 11,000 sqm of rentable office space. The project is a major part of the emerging new business and service district of Katowice. Many key institutions are located in the nearby surroundings of Centrum Biurowe Francuska: local government authorities, courts, and many renowned Polish and international companies.

Centrum Biurowe Francuska will eventually comprise two six-storey, Class A office buildings providing a total rental area of over 21,500 sqm.

The interiors of Centrum Biurowe Francuska were designed to provide future tenants with flexible interior design and effective adaptation of the area. This approach facilitates free arrangement of the space, e.g. for the back-office, research or laboratory operations that are usually conducted by companies from the BPO sector. The building provides companies with the opportunity to develop and expand within a single business park, which is still a rarity in Katowice.

With more demanding tenants in mind, Centrum Biurowe Francuska has been fitted with facilities commonly associated with projects that are finished to the highest standard. Maximum working comfort is achieved through the use of a modern air conditioning system, advanced telecom systems, professional security services, suspended ceilings, and tilt windows. All of these elements make GTC’s development at ul. Francuska stand out among the competition in the region.

Centrum Biurowe Francuska is conveniently located in the vicinity of public transport stops. The complex is also car-friendly, with an entrance directly from ul. Francuska and ready access from the A4 highway and state road no. 86. The centre is located about 25 minutes’ drive away from the Katowice Airport at Pyrzowice. The building’s underground parking lot provides space for about 400 vehicles.

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 centres, and residential.

GTC has developed about 800,000 sqm of net space and currently is the owner of completed commercial property with a combined net area of about 515,000 sqm. GTC also holds an impressive portfolio of investments 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, in the prestigious WIG20 index. The company’s shares are also included in the international MSCI index and the 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.

GTC and Blue House concludes significant property refinancing in Romania

• EUR 80 m loan will refinance the City Gate office building in Bucharest

• The building has attracted prominent tenants and is currently nearly fully leased

GTC Romania, a subsidiary of Globe Trade Centre S.A. (GTC), together with its partner Blue House has finalised a EUR 80m refinancing loan agreement with a consortium of banks including Alpha Bank Group, Bank of Cyprus and Eurobank EFG Group.

“This is the largest real estate refinancing transaction concluded in Romania this year” – said Hagai Harel, International Development Manager at GTC. “It is also one of the first major commercial real estate loans in Romania since the beginning of the financial crisis. Such an outstanding achievement is a result of joint efforts of GTC team and our partners from Blue House”

City Gate is one of the best performing office projects in the Romanian capital. The building, a joint development by GTC (59%) and Blue House Capital (41%), has a total rental space of 46,000 sq m and is located in the most prestigious business district of Bucharest. The complex includes retail space on the ground floor, two eighteen-storey towers, and a three-level underground garage providing more than 1,000 parking spaces. Both towers of the complex are nearly 90% leased. Some of the most prominent tenants are: Microsoft, Millennium Bank, Romtelecom, Hoffmann – La Roche, Rompetrol, and Autoitalia.

According to Eli Alroy, Chairman of GTC’s Supervisory Board, “City Gate is a landmark office development in Bucharest. I believe that it is the best office property in Romania today.”

City Gate won two CEE Real Estate Quality Awards in 2009. The project was honoured both as the best office complex (CEE Real Estate Office Development of the Year) and as the top construction project overall (CEE Real Estate Building of the Year).

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 800 000 sqm of net space and currently is the owner of completed commercial property with a combined net area of about 515 000 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.

GTC publishes H1 2010 results

• Rental revenues in H1 2010 increased to EUR 61.2m (+41% y-o-y)

• GTC achieved EUR 49.6m profit from operations (+226% y-o-y)

• Positive revaluation gain of EUR 13m in Q2 2010 after 5 consecutive quarters of negative revaluations

• GTC held EUR 203m in cash and short-term deposits

Globe Trade Centre S.A. (GTC) has released its H1 2010 results. The company achieved EUR 78m in revenues from operations. Total assets exceeded EUR 2.7bn. Net profit in H1 2010 was EUR 2.8m.

Total revenues from operations decreased by 7% year-on-year, mainly due to lower income from residential sales. Residential sales in H1 2010 were EUR 16.7m (down from EUR 40m in H1 2009), with a decrease in the number of apartments and houses available for sale.

Rental income increased 41% y-o-y to EUR 61.2m, driven by income from newly completed buildings and improved occupancy rates. The operating margin on rental activity was maintained at 78%.

The gross margin on operations increased 16% y-o-y, to EUR 48.3m.

In Q2 2010 investment property was revalued by independent external appraisers. As a result, a profit from revaluation of EUR12.6m was recognised in H1 2010. The main positive contributors were office buildings in Warsaw (due to yield compression and higher occupancy), Galeria Mokotów in Warsaw (due to increased income) and City Gate in Bucharest (improved occupancy and lower yield upon completion).

Profit from operations in H1 2010 increased to EUR 49.6m (+226% y-o-y).

Financial expenses were EUR 34.4m (vs EUR 20.7m in H1 2009).

“While GTC maintains a low interest rate on its loan portfolio, one-off financial costs and tax provisions have impacted the bottom line, as a EUR 2.8m profit was recorded in H1 2010. The one off financial cost resulted from classification of Topaz and Nefryt buildings as “Assets held for Sale”. The tax provision relates mainly to appreciation of assets in local currency, which may reverse once the euro exchange rate will be less volatile, as well as impact of interest expenses for which deferred tax assets can not be recognized”explains Erez Boniel, CFO and Management Board member.

“GTC has a strong balance sheet, with EUR 203m in cash and short term-deposits, while 50% of the debt matures in 2015 or later,” added Erez Boniel. “Our lenders are confident in GTC’s financial capacity, and we continue to successfully raise financing for new projects.”

In H1 2010 about EUR 100m in new financing was secured for projects in Warsaw (Platinium Business Park 4), Osijek (Croatia), Burgas (Bulgaria) and Bratislava.

According to Hagai Harel, GTC Management Board member in charge of international business development: “GTC managed to capitalize on long-term relationships with its strategic partner, the European Bank for Reconstruction and Development, as well as the region’s major commercial banks, in order to encourage them to provide financing on attractive terms for our retail projects under development in Osijek and Burgas.”

The high quality of the asset and GTC’s reputation as a developer allowed the company to conclude the largest pre-let office transaction in Poland in 2010, as the entire fourth building (about 13,000 sq m NRA) in Platinium Business Park in Warsaw was leased to Aviva Group. GTC has recently secured financing for this project.

There is also strong interest from tenants in pre-leases in the fifth building at PBP, as well for the third building at Okęcie Business Park in Warsaw. GTC plans to start construction of those two buildings in Q4 2010.

H1 2010 was also a turnaround time for GTC in terms of new acquisitions and disposal of assets.

The company signed a joint venture agreement with Polnord S.A. for development of a modern shopping centre in Wilanów, one of the most affluent residential districts of Warsaw. Under the agreement, Polnord contributed the land, and each partner holds a 50% stake in the company. GTC is in charge of managing development of the project on behalf of the partners. Also in H1 2010, GTC agreed with an international investor on the main terms for sale of two GTC office buildings in Warsaw: Nefryt and Topaz (combined NRA of about 27,000 sq m).

Eli Alroy, Chairman of the GTC Supervisory Board, said: “These transactions are the first purchase and sale of assets since the beginning of the crisis in 2007. This clearly reflects the improvement seen in the real estate market and indicates that GTC is back on track with its core business strategy: re-cycling capital through asset sales and selective acquisition of new projects.”

In 2011 and 2012 GTC plans to complete about 250,000 sq m of net office and retail space that is currently under construction. In 2010 major completions include office buildings in Katowice, Łódź and Budapest (GTC Metro) as well as shopping centres in Prague and Stara Zagora (Bulgaria).

Currently GTC holds 515 000 sqm of net rentable office and retail space.

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 515 000 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.