The preliminary agreement on the sale of five buildings inPlatiniumBusinessPark(I-V) was signed by GTC and Allianz in June. The companies finalized the sale of the Platinium I-IV buildings on 31 October 2012, after satisfying all conditions set forth in the preliminary agreement.
The final price of the four buildings inPlatiniumBusinessParkis EUR 139m and reflects the an investment yield of 6.7%. The transaction will bring GTC approx. EUR 44m of free cash which will allow the company to continue deleveraging and developing new projects.
The sale of the Platinium V building is expected in the first quarter of 2013 and will generate another approximately EUR 16m of free cash flow.
PlatiniumBusinessParkstands out for its award-winning architectural design, technical specifications, as well as quality of it tenants. The complex is located at the intersection of Domaniewska and Wołoska streets inWarsaw, and consists of five completed buildings, nearly 100% let, with a total rentable area of aprox. 56,000 sq m. Regardless of the transaction, GTC may develop on this site another building consisting of approx. 13,000 sqm.
Shortly before concluding the transaction, GTC received official confirmation from U.S. Green Building Council about granting LEED® Gold for Core and Shell certificate to the Platinium fifth building. The certificate covers all stages of the development process, including choice of location, design and construction works, as well as implementation of ecological solutions.
“By deleveraging and increasing the financial liquidity, GTC demonstrates strong improvement, especially in view of the volatile market environment. GTC will continue the efforts for implementing its business plan including development of its key selected projects,” – explains Erez Boniel, GTC’s Finance Director.
GTC had proposed investors to prolong the maturity of some of the existing bonds by way of acquiring new bonds in exchange for existing ones. The proposal was directed to selected institutional investors who were the bondholders of the bonds issued by GTC in 2007 and 2008.
As a result of the acceptance of the proposal by the bondholders, GTC issued bearer, unsecured bonds in the total nominal value of approximately PLN 206,000,000. The bonds will be amortized over 2017 and 2018 in 3 equal tranches with the final maturity 30 April 2018.
The interest on the bonds issued today is based on the 6M WIBOR and a 4% p.a. margin set forth in the terms and conditions of the bonds. With the aim of further deleveraging GTC has decided to purchase for redemption purposes additional bonds with a value of approximately EUR 17m at an average price approximately 98% of its nominal value.
GTC plans to list the new bonds on Catalyst by January 2013.
“Each of the three properties comprises between 10,000 and 14,000 sq m of net rentable area while all other GTC shopping centers exceed 30,000 sq m and are more focused on international tenants. GTC decided to focus on its large scale shopping centers due to the change in market conditions, relatively high operational costs for smaller assets, and their different tenant mix which results in lack of synergies with the larger retail assets in the Group,” – said Alain Ickovics, Chairman of the Supervisory Board of Globe Trade Centre S.A.
The transaction will improve both, the cash flow and profit and loss statement by €3 to €4 m on an annual basis since the properties were loss making. As a result of this transaction, GTC will recognize a revaluation loss of €19 m in the third quarter of 2012. In this specific case, GTC decided to choose immediate operational improvement over longer term value preservation due to current market conditions.
The buyer is an international private investor. The transaction is subject to buyer due diligence and customary approvals. The sale purchase agreement is expected to be finalized by Q1 2013.
The centers are located in Buzau, Piatra Neamt and Suceava which are second-tier and third tier cities in Romania and opened in 2008.
Platinium V is part of one of the most popular business parks in Warsaw and was put into use in June this year. The building comprises approx.11,000 sq m of modern office space. The area of a typical floor is 1,024 sq m, and each floor can be efficiently arranged into separate offices or open space. Tenants also have 180 parking spaces at their disposal. The building is over 90% let.
GTC fulfilled a number of USGBC requirements both during design and construction works. The result is a tenant-friendly building that was raised with full respect for the environment. Platinium V was constructed from materials that increase energy efficiency and enable maximum effectiveness of heating and air conditioning systems. Pro-ecological solutions include modern building management system (BMS) that helps in proper energy management, automatic light switches and toilets equipped with batteries with a temporary stop the flow that allow significant water savings. USGBC also valued the location of the facility, easy access to public transport, effectiveness of waste segregation and quality of the internal environment.
The architectural design of Platinium Business Park V was prepared by the Grupa 5 Architekci studio. The general contractor for the development was Warbud. The following companies were also involved in the LEED certification process: Buro Happold and Hill International.
GTC is about to complete the sale of five building in Platinium Business Park. The preliminary agreement on this matter was signed by the subsidiaries of GTC and Allianz Real Estate in June 2012.
Globe Trade Centre S.A. (GTC) has purchased from Polnord S.A. (Polnord) the remaining 50% of the Galeria Wilanów shopping center project in Warsaw. As a result, GTC will be now developing and managing the Galeria Wilanow project by itself.
The modern shopping and entertainment centre in Wilanow will comprise of up to approx. 80,000 sqm of net rentable retail space. The first phase of the project will comprise of approx. 60,000 sqm of net rentable area and the cost of that phase is estimated at 160 m euro. The project is under advanced preparations and will be started as soon as all permits will be obtained. The construction of Galeria Wilanów will last about 18 months.
The primary catchment area of the mall includes the most affluent housing districts of Warsaw such as Ursynów, Wilanow and Sadyba, as well as a prestigious resort area in nearby Konstancin.
Simultaneously, GTC plans to develop another modern shopping and entertainment centre in the Northern part of Warsaw. The mall will be constructed on a 4,9 hectare site in the Białołęka area