GTC to list on the Johannesburg stock exchange via a secondary listing

GTC Group (“GTC”), a renowned public commercial real estate company operating in Central, Eastern and Southern Europe since 1994, has announced that the Johannesburg Stock Exchange Limited (“JSE”) has approved its inward listing on the bourse’s main board. GTC is an owner and developer of primarily Class A office and retail properties located in Poland and capital cities throughout the CEE and SEE region.

Upon listing, which is expected to commence on or about 18 August 2016, the company will be included in the “Real Estate Holding and Development” sector and become the first Polish inward listed company on the JSE. GTC’s primary listing will remain on the main market of the Warsaw Stock Exchange.

“Over the last few years, we have observed significant interest from South African investors in high-quality SEE and CEE commercial real estate properties as evidenced by recent transactions in Poland, Romania, Serbia and Croatia. Based on this increased interest, we have decided to pursue a secondary listing on the JSE to enlarge our shareholder base and provide South African investors with an opportunity to invest in a premier commercial real estate owner and operator within the region. GTC not only has a uniquely located Class A office and retail portfolio, but also has significant embedded growth associated with our current development pipeline commented GTC CEO, Thomas Kurzmann.

South African institutional demand for property stocks remains robust. In particular, South African investors have shown a strong appetite for foreign-domiciled, quality inward listed property stocks that have a proven track record, with over R80 billion being invested in these stocks over the last three years.

GTC presents a clear and defined growth path with a compelling total return proposition. Whilst the SA investor community remains concerned about expensive REIT valuations, GTC offers reasonable upside in the future and significant embedded NAV growth potential. The platform offered by GTC comprises 40 commercial properties providing approximately 715,000m² of office and retail space to its tenants and customers in Poland, Serbia, Hungary, Romania, Croatia, Bulgaria and the Czech Republic. The portfolio is valued at €1.3 billion as at 31 December 2015 and generates approximately €84 million in annual net operating income.

In addition to the current portfolio of income generating assets, GTC is currently developing three projects totaling 82,000 m² of retail and office space in Warsaw and Belgrade. The company is currently considering another four commercial projects with the commencement of construction planned for 2016/2017.

“GTC is a renowned CEE commercial real estate owner and developer with an established track-record and we anticipate that this inward listing will increase the liquidity and tradability of our shares. In addition, this listing will also drive increased awareness of our current activities, future strategic initiatives as well as position our brand positively with a new group of institutional investors” concluded Kurzmann.

GTC does not plan to issue new shares as part of the secondary inward listing.

Investec Bank has been appointed as Corporate Advisor and JSE Sponsor in relation to the proposed listing.

GTC acquires two office buildings in Poland

GTC has announced the acquisition of Neptun Office Center and Sterlinga Business Center, located in Gdansk and Lodz respectively. These two Class A office buildings, featuring modern design and a total of 30,000 sq. m GLA of office space and 364 parking places, will enrich the Group’s Polish investment portfolio.

The Gdańsk-based Neptun Office Center, a Class A high-rise office building, offers 16,082 sq m of leasable space with 73% occupancy. Sterlinga Business center is a Class A office building located in the center of Łódź and offering 13,895 sq. m of leasable office space with 94% occupancy. The weighted average lease term of 3-5 years combined with approximately 5,000 sq. m of leasable space available in both buildings secure recurring income and allow for an upside potential in cash flow and property value. The acquisitions were financed by bank loans and GTC’s own sources.

“Each year, the demand for modern office space in major Polish regional cities grows continuously as evidenced by a record volume of leasing transactions in 2015. We are very happy to further enlarge our portfolio in the regional cities by investing in Neptun Office Center and Sterlinga Business Center as they stand for the high quality of office space in a very good location.“ commented GTC Chief Investment Officer, Jacek Wachowicz.

“Being present in most of the regional office markets in Poland, we are able to participate in their investment potential. Both, Neptun Office Center and Sterlinga Business Center will further contribute to our recurrent income, value creation and enhance our presence on the fast growing regional markets. The new acquisitions fit exactly our investment strategy and view on the market.” commented GTC CEO, Thomas Kurzmann.

During the transactions, GTC was advised by Hoganlovells, JLL, KPMG and Aecom. The transactions was closed in two months.

NEPTUN OFFICE CENTER

Neptun Office Center is the only high-rise office building in the Tri-City offering its tenants a high profile office accommodation in a prime location with excellent public transportation links. The building was built to high technical specifications with 16,082 sq. m. of leasable office space designed to allow individual space layouts and flexible division of floors into modules addressing individual clients’ requirements. Fully glazed facade ensures plenty of daylight at workstations and lets the tenants enjoy an amazing view of the city and the nearby Baltic Sea and its commercial port.

STERLINGA BUSINESS CENTER

Sterlinga Business Center is a class A, office building in the center of Łódź offering 13,895 sq. m of modern leasable space on 9 floors. Tenant car park is located on two underground floors and provides a total of 203 parking spaces. The ground floor houses a representable double-height reception lobby with high quality finishes in natural stone, wood and custom-made furniture. A canteen and retail units on the ground floor add to the services provided to the building’s tenants.

Sterlinga Business Center Łódź2

Centrum Biurowe Neptun Gdańsk