GTC successfully increases holdings in its CEE subsidiaries to 95-97%

GTC managed to further increase its share in CEE subsidiaries to more than 95% following purchase of shares from its minority partner in Hungary, Romania, Serbia and Croatia.
GTC agreed with ADRI International B.V. to acquire its stakes in GTC Hungary, GTC Serbia, GTC Romania and GTC Serbia for USD 19.4m.

On 10th October 2005, Globe Trade Centre S.A. (“GTC”) signed Sale Purchase Agreements with ADRI International B.V. (“ADRI”) to purchase its shares in GTC Real Estate Investments Serbia B.V. (“GTC Serbia”), GTC Real Estate Investments Romania B.V. (“GTC Romania”), GTC Hungary Real Estate Development Private Company Ltd.(“GTC Hungary”) and GTC Real Estate Investments Croatia B.V.(“GTC Croatia”) – together “the Subsidiaries” .

The transaction also includes cancellation of ADRI co-investment rights in future projects in Hungary, Romania, Serbia and Croatia as and in potential new countries in the region, as well as repayment of shareholders loans from ADRI in the amount of USD 10.6m.

GTC shareholdings in the Subsidiaries will increase by approx. 20-30% and upon completion of the transaction it will hold approx. 97% in each of GTC Hungary, GTC Serbia and GTC Croatia and approx. 95% in GTC Romania .

Other shareholders in the Subsidiaries will acquire as well their pro-rata part from the shares sold by ADRI at the same price.

The closing of the transaction with ADRI is scheduled for 15 December 2005.

In Budapest, leasing and construction of an A-class office building, Center Point II, with 23,000 sqm NRA is progressing according to the schedule.
Riverloft, the unique apartment project on the bank of the Danube – sold over 50% of units.

In Romania, the leasing of the America House office building in Bucharest has been completed and its 27,000 sqm NRA is fully let before completion scheduled for December 2005.
An impressive shopping mall Galleria in Bucharest with 60,000sqm of GLA is planned to open in 2007, while the business park and the residential complex (total of 60,000sqm) will be developed next to Galleria as further stages of the project.
Finally, two GTC’s prestigious residential projects currently under development: Jasmin Park and Green Dream Residence will offer nearly 800 apartments in Bucharest.

In Serbia, following the successful completion and leasing of GTC House – an A-class office building, GTC is progressing with the development of a mix office and residential complex in Block 19a in New Belgrade, offering 30,000sqm in total, while sale of apartments there has already started.

In Zagreb, GTC just started construction of 27,000sqm GLA modern shopping centre – Avenue Mall, to be accompanied 8,000sqm NRA A-class office tower. Leases with anchor tenants – a cinema operator and supermarket have been signed, which together with commitments from other retailers comprise 60% of available retail space.

New projects in Hungary, Romania, Serbia and Croatia are currently under negotiations.

Mariusz Kozłowski, Member of GTC’s Management Board commented on the transaction: “After the recent purchase of shares in CEE subsidiaries from Deutsche Bank, GTC seized another opportunity to further increase GTC’s share in the booming real estate markets in the region at attractive price. Purchase of ADRI shares will allow GTC to consolidate bigger share of revenues and profits coming from its successful projects in the region. The transaction will have a positive impact on GTC financial results in 2005 and subsequent years”.