GTC acquires 200,000 sqm of new

Terms of purchase of four new investments have been agreed. New land acquisitions will increase GTC’s portfolio of completed property and projects under development to 1.7m sqm of net office, retail and residential space

In June, GTC agreed the terms of acquisition for two residential projects in Łódź and Budapest, and two mixed-use retail and office developments in Belgrade. The four projects will increase GTC’s portfolio by 200,000 sqm of net building rights.

Globe Trade Centre S.A. (GTC) accelerated the pace of new investments in June.

In Poland, GTC signed a preliminary agreement to acquire a 4.7- hectare site in a central location in Łódź. Upon completion of the acquisition, GTC is going to develop an upper-middle-class residential complex of about 1000 apartments.

In Budapest, GTC Hungary has agreed the terms of acquisition of a 6-hectare site in a prominent residential district. The site can accommodate development of about 60,000 sqm of residential space, targeting a upper-middle-class income owners .

GTC further expanded its commercial property pipeline in Belgrade. GTC Serbia has signed two memorandums of understanding for purchase of two separate sites.

The total area of both sites combined is 3.25 hectare. GTC is planning to develop there mixed-use projects that will include overall 29,000sqm of NRA retail space and 25,000sqm NRA office space. Both sites are situated in attractive locations, easily accessible by car and public transportation. The larger site, that will be a predominantly retail development, backs onto a dense residential area with high income per capita and with no significant retail developments located in the vicinity.

The total cost of acquisition of the four sites is estimated at about EUR 75m , while the total development cost (including cost of land) of those projects amounts to EUR 290m.

Upon completion of those four transactions, GTC’s portfolio of completed property and projects under development will increase to 1.7 million sqm of net office, retail and residential space.

GTC`s new retail project in Croatia 100% leased

GTC to open the first third-generation shopping mall in Zagreb. Avenue Mall brings Zara to Croatia

Avenue Mall – the first third-generation shopping center in Zagreb, developed by GTC Croatia – has been 100% leased. The retail project, scheduled for opening this August, will produce EUR 10m of net annual rental income.

The mall features 130 shops, 36,500 sq m of gross retail space (26,500 sq m NRA), and some of the biggest names in the fashion world. One of the world’s largest fashion retailers, Inditex Group, will open its first Zara and Bershka stores in Croatia. Other international brands include Marks & Spencer, Esprit, Benetton, Calvin Klein, Tommy Hilfiger, Lacoste, Mango, Pirelli, Top Shop, Nike, Adidas, Puma, Deichmann, Bata, Jack & Jones, and Sephora.

Avenue Mall will set a new standard for Zagreb’s entertainment destinations with a nine- screen Blitz Cinestar multiplex cinema with 1,800 seats. There will also be more than 500 seats in the food court and restaurants, cafés and bars featuring names like Daily New Café, Escobar and Khala.

Konzum supermarket has signed 20-year lease for 3,500 sq m and will open its flagship store there.

Vast majority of the leases in Avenue Mall have been concluded for 10 years.

Avenue Mall is the first mall in New Zagreb. Its catchment area within 30 minutes’ drive includes Zagreb’s entire population of 800,000 people. It has been designed to the highest world-class standards and features superb, stylish architecture.

Colliers International has been appointed as the exclusive leasing agent responsible for renting the retail space in Avenue Mall.

S. Mor, Country Manager of GTC Croatia, said: “Avenue Mall will be the first real shopping destination in Zagreb to meet international standards. We are very proud to have developed such a world-class facility and believe that it will transform shopping here.”

GTC Croatia holds a 70% interest in Avenue Mall. GTC Croatia is a 97.2% subsidiary of Globe Trade Centre S.A. GTC Croatia began its activity in Croatia in 2004.

In March 2006 GTC Croatia acquired a 1.2-hectare site in New Zagreb, on which 14,000 sq m of net retail space and 10,000 sq m NRA of office space is planned to be completed in 2008.

At the same time, GTC Croatia is developing a prestigious golf resort on the sea coast of Istria. The project includes 20,000 sq m of residential space and a 5-star hotel, in addition to a professional 18-hole golf facility. GTC Croatia is a 75% partner in the residential development and an 80% partner in the hotel project.

Record sales of GTC apartments in Bucharest

In seven months of sales of the Rose Garden residential development in Bucharest, 500 out of 908 homes have already been sold.First half of investment to be ready for occupancy in 2008.

GTC Romania, a 95% subsidiary of Globe Trade Centre S.A. (GTC), has sold more than 500 of the 908 flats and apartments being built in the Rose Garden residential development in Bucharest. The total value of the Rose Garden homes sold so far is more than EUR 52 m.

Rose Garden is a residential complex being built in the northeastern section of Bucharest, on Colentina Avenue, near the city center and convenient to numerous commercial, service and recreational facilities. With its rich municipal infrastructure and different types of mass transit serving the area around the development (metro, buses, trolleybuses and trams), Rose Garden residents will have an easy commute anywhere in Bucharest.

The development offers a total of 908 apartments and flats in 11 buildings (from 9 to 11 stories). A shopping and service area of some 1500 sq m is also being built as part of the development. Residents will have access to 1100 parking spaces above- and below-ground, numerous green areas for walking, and playgrounds for children. The homes at Rose Garden are varied in order to suit the needs of different types of buyers. Among the options available to buyers is ahigh-standard fitout of their home. Homes being built in the complex range in size from 55 sq m to 145 sq m and include studios, large apartments and penthouses.

Rose Garden is one of four residential investments being carried out by GTC in Bucharest (the others are Felicity, Green Dream Residence and Jasmine Park). By the end of 2009, the company plans to release a total of about 280,000 sq m of residential area onto this market.

GTC has been active on the Romanian market since 1999 via its subsidiary GTC Romania.

The developer holds an impressive portfolio of residential investments in the upper-middle and upper range of the market. Currently, GTC is carrying out 16 investments with a total area of almost 500,000 sq m (the portion owned by GTC, taking into account the company’s share in joint ventures).

Three of the projects – Sasad Resort in Budapest, and Rose Garden and Felicity in Bucharest – are being carried out jointly with RREEF, a fund managed by Deutsche Bank. GTC Hungary and GTC Romania, respectively, hold 50.1% of these companies.

Other projects being carried out currently are:
Poland: Osiedle Konstancja in Warsaw, Ogrody Galileo in Cracow, Rezydencja Parkowa in Poznań, and a housing development on Mikołowska Street in Katowice
Czech Republic: Prague Marina and Green City in Prague
Hungary: River Loft in Budapest
Slovakia: Vinohrady and Park Apartments in Bratislava
Serbia: Park Apartments in BelgradeCroatia: Istria Golf Estate