GTC acquires retail and office site next to Sazka Arena in Prague

GTC purchased 90,000 sqm plot in Prague. Project includes 40,000 sqm NRA shopping centre and 80,000sqm NRA office complex. Total cost of investment amounts to approx. EURO265m

Globe Trade Centre S.A. (GTC S.A.), acting through its Czech subsidiary, together with its partners – RREEF (real estate fund managed by Deutsche Bank A.G.) and Scorpio (BS Group), acquired a unique 9 hectare site located next to Sazka Arena in Prague.

The land is located in District 9, next to the metro station, with an excellent exposure to the important city communication routes and access to public transportation.

Sazka Arena is a new sport and concert stadium that is one of the most impressive sport buildings in Europe, accommodating mass events.

The site has obtained a valid planning and zoning decision allowing to develop approx. 180,000 sqm of gross space.

The development will include a 40,000sqm GLA modern shopping centre as well as 80,000sqm NRA office complex developed in stages, and potentially a hotel.

The total cost of investment is estimated at approx. EUR265m. The start of construction is planned for Q4 2007.

GTC S.A. will develop this project through its associate company and will hold ultimately 29.7% interest in this venture.

The robust economic growth in Czech Republic resulted in increased demand for high quality retail centers and office space in Prague. The new project next to Sazka Arena will address that demand, creating a large commercial district in a popular destination for Prague residents.

The new development will add to the impressive property portfolio in Prague that GTC holds together with its partners.

Currently the Company develops two large residential projects – Prague Marina and Green City.

Within Prague Marina complex, GTC starts development of two office buildings, while already-completed 27,000 sqm Lighthouse office building is 90% leased.

In District 6 GTC owns an office-logistic centre that upon getting planning decision will be turned into luxurious residential complex with more than 400 apartments. In addition, GTC plans to develop waterfront residential property in the Vltava River ports of Liben and Smichov.

Total NRA (existing, in progress and pipeline) in Prague is app. 500,000 sqm on app 600,000 sqm land.

GTC to develop another shopping center in Romania and has won awards in Hungary

GTC Romania acquired site for a 25,000 sqm GLA shopping centre in Romania

GTC’s Center Point was voted the Best Office Development and the Best Overall Development in Hungary at CIJ Awards.

GTC Romania has recently finalized the purchase of a 33,000-sqm plot in central Arad, Romania. On this land GTC will develop a shopping center of 25,000 sqm GLA. The development is part of the joint venture with Aura Investments Ltd., which have previously acquired 3 other sites. GTC’s stake in this development is 75%.

Arad is one of the most important cities in Romania and among the top urban centers in the region in terms of area and population. With around 460,000 inhabitants, Arad County has a density of approximately 60 people/square km. The town of Arad counts approximately 171,860 people. Located near the western border with Hungary, Arad is one of the counties often preferred by foreign investors, being one of the most important transit locations connecting Romania to the west.

The construction for the new shopping center is planned to start in the next 6 months, with delivery scheduled for Q4 2008. After completion, the shopping centre is expected to generate EUR6m annual rental income.

In addition to the transaction in Arad, GTC is developing shopping centres in Piatra Neamt, Succeva and Buzau as part of the 50/50 partnership between GTC and Aura Investments. Galleria is the chain brand name and the first shopping center is expected to be open on Q1 2008.

Following this acquisition, GTC’s portfolio in Romania includes 500,000 sqm of net office, retail and residential property in completed and under development projects. GTC’s part comprises more than 300,000sqm, as some of the projects are developed together with partners.

GTC Hungary won two prestigious awards at the CIJ (Construction and Investment Journal) annual awards dinner on Thursday, 7th December in Budapest. GTC won the award for the Best Office Development in 2006 and the Best Overall Development in 2006 for their Center Point 2 Office Building in Budapest.

Robert Snow, Managing Director of GTC Hungary was also honoured with the Personality of the Year, one of the CIJ reader-voted prizes.

GTC completed earlier this year their €50 million investment in Center Point, one of the largest and most prominent Class A office buildings in Budapest, on Váci út in District XIII, with over 41,000 square meter of net rentable area. Designed by award winning architects ‘Zoboki Demeter Associates’ (Palace of Arts), the building is successfully leased to major international clients, the foremost tenant being ExxonMobil with 16,500m2 rented area. The tenant profile includes a list of the world’s top names such as: Allianz Bank, Bunge, GE, Honeywell, Lombard Leasing, Kudos, Nalco, Raiffeisen Bank and Leasing, and VTK. Within 6 months from completion the building was over 98% leased.

GTC finalised an agreement with Heitman to sell MBP in Warsaw

MBP has been sold for USD287m to funds managed by Heitman European Property Partners

GTC commences new investments in seven major Polish cities.

On the 1st December 2006 the three 100%-owned subsidiaries of Globe Trade Centre S.A. (GTC) signed with funds managed by Heitman European Property Partners III a final agreement to sell Mokotów Business Park in Warsaw for USD 287 million.

Mokotów Business Park comprises 107,000sqm of NRA in nine buildings. It has been the first and the largest GTC investments.

The transaction is a part of GTC strategy of rebalancing property portfolio in Poland, including the sale of mature assets in Warsaw and expansion in other large Polish cities.

GTC started this month construction of the first building in Platinium Business Park. The building will offer 9,000sqm of high-standard office space in prime location across from Mokotów Business Park and is scheduled for completion in Q4 2007.

Next to recently completed Topaz building, the Company is going to start 15,000sqm Nefryt Building. In parallel, in the vicinity of the Warsaw International Airport, construction of the first building in Okęcie Business Park is beginning.

Currently, in addition to three office developments in Warsaw comprising 33,000sqm, GTC is developing projects in Kraków, Poznań, Wrocław, Łódz, Częstochowa and Katowice. The Company expects that in 2007 approx. 250,000sqm of net space will be under various stage of development in the seven cities in Poland.

The property markets in Poland are showing strength in all three sectors. The office vacancy rates in major Polish cities range from 1% to 7%. Recently the demand for quality office space has significantly increased, with the biggest requirements coming from outsourcing firms and business process off-shoring operators.

Concurrently GTC is rapidly expanding its operations in Central & Eastern Europe.

GTC is benefiting from the booming regional real estate markets, which has been reflected in this year financial results. In nine months of 2006 GTC achieved more than USD234m profit.