GTC begins the construction of the Karkonoska Office Center in Wrocław

The subsidiary company of GTC – GTC Wrocław Office has chosen Budimex Dromex as the general constructor for the Karkonoska Office Center in Wrocław.

According to the contract signed between the companies – on the 1st of September this year Budimex Dromex has begun work on the building of the Karkonoska Office Center.

The Karkonoska Office Center is GTC’s second investment in Wrocław, after the handing over the use this year of the GLOBIS Wrocław. The Center will be built on a plot of an area of 1.3 ha on Karkonoska Avenue – a main access route to the city, 10 minutes from the centre, in the vicinity of the Special Economic Zone and the Bielański Junction, where the national routes intersect with the A4 motorway and the largest retailing-services establishments in Wrocław are located.

Karkonoska OC is three cascaded office buildings (A, B and C) with a combined space of 32 000 sqm. In the first stage, buildings A and B will be built. Building A, composed of 13 storeys, will have 15 000 sqm of space, the second – of nine storeys – 12 000 sqm. On the ground floors of both buildings – is envisaged a supporting retail base, and below ground – parking for approximately 550 cars.

The completion of building A is planned for the end of 2009, building B will be completed in 2010. The construction of these two phases of investment will cost 44,6 mln euros (148,4 mln PLN).

The Karkonoska Office Center is the project of the architectural design office Studio EL, managed by Edward Lach, and Knight Frank and IK Development agencies are responsible for leasing the space in the Karkonoska Office Center.

GTC continues expansion

Globe Trade Centre S.A. (GTC) has posted its Q2 2008 results.GTC posted a net profit of EUR 42.8m in Q2 2008 (+23% QoQ). Operating revenues grew 46% YoY to EUR 19.1m.The company maintains high liquidity with EUR 292m in cash. The first projects in Russia and Ukraine have been acquired


Revenues from operations increased 46% YoY to EUR 19.1m resulting mainly from lease commencement in newly completed buildings, as well as the increase of rental income in existing shopping centres and office buildings.


Net profit was EUR 42.8m vs EUR 34.8m in Q1 2008 (23% increase QoQ).

A year ago, Q2 2007 net profit was EUR 77.9m – a difference YoY attributed to completion of a large shopping centre, Avenue Mall in Zagreb, in that quarter.


In Q2 2008, profit from revaluation of the Zephirus office building (9,200 sqm NRA) in Warsaw and Galleria Buzău (13,300 sqm GLA) in Romania was EUR 20.9m (before tax). The independent international appraisers based their valuations on 6.2% and 7.5% exit yields respectively.


An additional EUR 6.8m in income resulted from reversal of market value impairment of land in the Osiedle Konstancja development in Warsaw.

An effective strategy of hedging interest rate and currency risk for GTC’s financial liabilities resulted in significant profits in Q2 2008, largely contributing to the EUR 20.5m net financial income.


The company has maintained high liquidity and achieved outstanding results in raising financing. As of 30 June 2008 GTC held EUR 292m in cash and cash equivalents, while the long-term debt to total assets ratio was 37%.


In May 2008 GTC issued 5-year unsecured bonds with a face value of PLN 350m (approx. EUR 102m). The bond obligation in Polish zloty was swapped for Euro-denominated debt at a fixed interest rate, resulting in an effective interest cost of 6.63%.


A strong track record in execution of real estate projects, high quality of assets, low leverage, as well as long-established relations with leading European banks, have allowed GTC to secure financing under favourable terms for all projects under construction or soon to be started.


GTC continues its expansion in new markets. In May 2008 GTC Russia acquired a 50% interest in an office project in St. Petersburg which provides for development of 110,000 sqm of Class A offices.


In July 2008 GTC Ukraine purchased together with Europort Ltd a 14-hectare site in Odessa. The project, in which GTC Ukraine holds a 49.99% share, will include development of 120,000 sqm of office and logistics space.


In order to further strengthen GTC’s position in CIS markets, Globe Trade Centre S.A. purchased a 10% stake in Europort Ltd, which is a platform for developing real estate projects in Ukraine and Russia.


Currently the portfolio of pipeline projects under development includes approximately 2m sqm of net office, retail and residential space
(GTC’s stake)
, of which 1.5m is planned to be completed by the end of 2010.

Still more tenants in Platinium Business Park

In August GTC S.A. hands over Platinium II for use, the list of prestigious tenants continually grows. During the last quarter 70% of the total available space in the building has been leased.

*PLATINIUM II is ready to accept tenants
* GTC has leased 70% of the space in the office building in three months

In August Globe Trade Centre S.A. hands over PLATINIUM II for use, the list of prestigious tenants continually grows. During the last quarter 70% of the total available space in the building has been leased.

The group of PLATINIUM II tenants has recently been joined by: the clothing firm IC Companys (700 sqm); Helm, which a distributor of chemical products (500 sqm); Accetis, human resources advisory firm (300 sqm), and so three firms from the financial sector: the largest with regard to the number of clients is the French retail bank Crédit Agricole (400 sqm), mBank (270 sqm) and Finamo (150 sqm).

In September this year the new offices in the second building of Platinium Business Park shall be taken up by the equally well-known advertising and the media firms – Saatchi & Saatchi and Zenith Optimedia (to 1,700 sqm), one of the leaders in the IT sector – OKI Printing Solutions Polska (700 sqm), and Electrabel (300 sqm), a renowned representative of the power generation industry.

“We observe with pleasure that Platinium Business Park is becoming the next business showpiece of Warsaw Mokotów, in the creation of which GTC has been involved. The unwaning interest of lessees in the office space proves the attractiveness of this place. It is undoubtedly one of the best business park locations in the Warsaw district of Mokotow and the location is conducive to creative work in a friendly atmosphere” – says Katarzyna Pankiewicz, Director of Office Space Leasing of Globe Trade Centre SA.

All of the above mentioned firms join the already existing tenants of Platinium Business Park, located in Warsaw at the intersection of Domaniewska and Wołoska Streets. Since spring this year, Leo Burnett, Levi Strauss, GE Medical Systems, Trio Management and Expander have already located their offices in the first building of the complex.

The plan of expansion of Platinium Business Park, which is to have five A-class buildings offering in total 66,000 sqm of leasing space, will allow companies to extend their offices within one location. Apart from attractive situation in the very heart of a dynamically developing business district, the complex is distinguished by modern architecture, high quality decorative elements and interesting arrangement of common areas among buildings.

GLOBE TRADE CENTRE S.A. (GTC S.A.) is one of the leading developers in the New Europe, developing real estate projects in CEE (Central and Eastern Europe) and SEE (South Eastern Europe), while exploring CIS markets for further expansion. Globe Trade Centre S.A. carries out investments as a developer in Poland, Hungary, the Czech Republic, Romania, Serbia, Croatia, Slovakia, Bulgaria, Russia and Ukraine.

GTC carries out investments in three key sectors of the property market: office buildings and parks, shopping and leisure centres and in the residential sector.

GTC has developed about 600,000 sq m of net space and now owns completed commercial property with a net area of about 254,000 sq m. GTC also holds an impressive portfolio of 2 mln sq m of commercial and residential area at various stages of development.


GTC S.A. shares are listed on the prestigious WIG20 index and are also included in the international MSCI indices. In January 2006, GTC S.A. shares were added to the GPR 250 index, which includes the 250 largest and most liquid companies in the world in the real estate sector.