GTC has acquired its first project in Ukraine, together with Europort Ltd. The partnership will develop a mixed-use project in Odessa. Another GTC subsidiary has also purchased a 10% stake in Europort Ltd – an exchange-listed company that invests in real estate projects in CIS markets.
GTC Real Estate Investments Ukraine B.V. (GTC Ukraine), a 85.5%-owned subsidiary of Globe Trade Centre S.A. (GTC), has purchased a 49.99% stake in a company that owns a plot of land in Odessa. The remaining shares in the project are held by Europort Ltd, a public company listed on the Tel Aviv Stock Exchange that is investing in real estate projects in CIS markets. GTC Ukraine will provide the partnership a shareholder loan of USD 12.6 million.
At the same time, a 95%-owned subsidiary of Globe Trade Centre S.A. has acquired a 10% stake in Europort Ltd, and potentially under certain conditions may increase its stake to 20%. The price paid for the 10% stake was USD 5.5 million.
Earlier this year GTC entered Russia, acquiring a 50% interest in an office project in St. Petersburg. 110,000 sq m of class A office space is planned for the 4.3 hectare site, located in the Vyborgsky District. GTC is planning further expansion in Russia and Ukraine, either alone or with reputable partners. The European Bank for Reconstruction and Development (EBRD) is a 10% shareholder in GTC Ukraine, while GTC’s partner in the St. Petersburg project is Menora Mivtachim, a leading insurance group in Israel with assets of over USD 14 billion.