GTC’s Serbian portfolio expands further

  • GTC has acquired an A-class office building in Belgrade
  • Belgrade Business Center offers 17,900 sq. m
  • It is 96.8% occupied by UniCredit, AirSerbia, and NCR

The GTC Group, one of the leading commercial real estate companies operating in Central, Eastern, and Southern Europe, has acquired a modern A-class office building in Belgrade, Serbia. Belgrade Business Center will increase GTC’s Serbian portfolio to 98,400 sq. m GLA and further strengthen its leading position on this market.  

Belgrade Business Center offers 17,900 sq. m of GLA and 307 parking places. The state-of-the-art office building has been designed and build to the highest standards.

“GTC’s strategy includes acquisition of assets with value add potential to expedite growth in parallel to our highly profitable development activity. We seek for opportunities in booming, capital cities like Belgrade, Budapest and Bucharest. Belgrade Business Center will strengthen our recurring NOI by more than EUR 3 million per year with additional potential for NAV growth” said Thomas Kurzmann, GTC CEO.

Belgrade Business Center is located in a well-established residential and commercial area called “Belville” which offers easy access by car or public transport from all around the city. The current occupancy rate stands at 96.8% with key tenants being Air Serbia, UniCredit, and NCR.

Earlier this summer, in line with it strategy, GTC has acquired an office building in prime CBD location of Bucharest, Romania. Cascade Office Building offers 4,200 sq. m of modern leasable area and has a prominent tenant list featuring Procredit Bank, Enel, and Taiwan TC. The building has a very distinct architectural design, with its curved colorful façade and provides flexible floor space.

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GTC with almost EUR 400 m of financing and refinancing in the first half of 2017

  • Refinancing of existing project loans of EUR 221.5 m
  • New construction loans of EUR 96 m
  • Euro denominated bonds of EUR 68.5 m

It took GTC, a leading CEE real estate investor and developer, only the first 6 months of 2017 to refinance and conclude loans for almost EUR 400 m through euro bonds offering, project loans and construction loans.

The concluded loan agreements for financing and refinancing of the company’s 8 projects amounted to more than EUR 300 m. Among this year’s deals, GTC signed a binding term sheet with Banca Intesa Beograd, VUB and PBZ for EUR 64 m for the financing of Ada Mall in Belgrade and a construction loan for GTC White House in Budapest for EUR 26 m with Raiffeisen Bank. Among largest refinancing deals, GTC has agreed the facility for City Gate for EUR 84 m with Erste Bank, the facility for Korona Office Complex for EUR 46 m with BZWBK and facility for Avenue Mall Zagreb  for EUR 50 m.

What’s more, only in June 2017, GTC completed a EUR 40 m prospectus-exempt public offering of 3-year euro denominated bonds to be listed on Catalyst, which adds up to approximately EUR 70 m since the beginning of the year and is used amongst other to replace more expensive debt.

“We did not say the last word yet. Thanks to the expansion of the company’s operations and development we continue to secure long term financing through new bonds, financing and refinancing activity. We continue to take advantage of the current low interest levels to significantly improve the costs of our debt, while optimizing the leverage ratio.”– commented Erez Boniel, GTC’s CFO.

Galeria Północna with occupancy permit

  • Galeria Północna has attracted renowned tenants including Forever 21, Cinema City, H&M, the LPP Group and many more
  • The new generation shopping mall is LEED Gold certified
  • Total leasable area of the mall is 64.800 sq. m

GTC’s Polish flagship retail project was officially granted a final occupancy permit. Galeria Północna is the first major modern shopping and entertainment centre located in Warsaw’s Białołęka district. The investment was completed within 25 months after obtaining the construction permit.

Designed by renowned APA Wojciechowski and Tzur Architects studios, the shopping mall offers 64.800 sq. m of leasable space and ca. 2.000 parking spaces at its customers’ disposal. The list of brands that are to open their stores in Galeria Północna includes companies that decided to enter the Polish market for the first time, i.e. Forever 21 and Hamleys.

“It is with great pleasure to announce that Galeria Północna has received final occupancy permit, officially marking the completion of the project. Galeria Północna is the first and biggest shopping center in the area, strongly awaited by locals and retail industry. This investment is collective success of the whole company and its opening in September 2017 will more than double the value of GTC’s income producing retail portfolio” said Thomas Kurzmann, GTC CEO.

The official opening of the shopping center will take place on 14th September this year.

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GTC expands company’s operations and development and continue to secure long term financing through new bonds, financing and refinancing activity

H1 2017 HIGHLIGHTS:

  • Development profit of €51m driven by projects under construction and revaluation of income generating portfolio
  • Profit before tax at €68m in H1 2017 (€46m in H1 2016)
  • Earnings per share up to €0.13 in H1 2017 (€0.08 in H1 2016)
  • EPRA NAV increased 6.6% to €956m (€897m as of 31 December 2016)
  • EPRA NAV / share increased 4.2% to €2.03 as of 30 June 2017 from €1.95 as of 31 December 2016
  • Gross margin from rental activity increased to €43m in H1 2017 (€42m in H1 2016)
  • FFO I stable at €21.5m (€21.9m in H1 2016) despite disposal of the malls in Bulgaria
  • FFO I / share at €0.05 (€0.05 in H1 2016)
  • €68.5m newly issued Euro denominated bonds to refinance existing expensive PLN bonds
  • Financing and refinancing activity on project level of approx. €326m in H1

PORTFOLIO UPDATE:

  • 5 projects under construction with over 174,000 sq. m GLA with 72,300 sq. m to be completed in Q3 2017 (Galeria Północna and Artico office building, Warsaw)
  • 239,000 sq. m of retail and office space is in the planning stage in 8 projects (Warsaw, Budapest, Bucharest, Sofia and Zagreb)
  • Strong leasing performance with 61,500 sq. m of office and retail space newly leased and renewed extending current WALT
  • Occupancy at 94% (93% as at 31 March 2017) thanks to improvement in Galeria Jurajska and tenants expansion  mainly in FortyOne complex

The first half of 2017 was dedicated to advance planning and permitting on our development pipeline projects as well as acquisition of excellent new office locations in the fastest growing office markets of Budapest, Bucharest and Sofia. The opening of Galeria Północna in Q3 2017 will more than double the value of GTC’s income producing retail portfolio. More completions in Budapest and Belgrade planned for 2018 will further strengthen our yielding retail and office portfolios and contribute significant to rent income and NAV growth. As a result we have today 5 projects under construction and 8 projects in the planning stage, they will boost our income generating portfolio by 0,4 m sq. m GLA from 2017 to 2020” said Thomas Kurzmann, GTC’s CEO.

Thanks to the expansion of the company’s operations and development we secured long term financing through new bonds and refinancing activity. We continue to take advantage of the current low interest levels to significantly improve the costs of our debt, while optimizing the leverage ratiocommented Erez Boniel, GTC’s CFO. “Additionally, growing activity and improving results allowed us to pay dividend in Q2, which is another milestone in our growth momentum” he added. 

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