GTC finalized debt restructuring of its Romanian subsidiaries

Globe Trade Centre S.A. (“GTC”) successfully restructured the loan agreements of its Romanian subsidiaries with the European Bank for Reconstruction and Development (“EBRD”).

On 26 June 2015, GTC signed the agreement with EBRD for the restructuring of the existing loans for its two Romanian shopping malls in Arad and Piatra Neamt. Under this agreement, GTC will be released from guaranteeing the loans and instead will become a co-borrower alongside its subsidiaries. According to the restructuring agreement, the loans totaling approx. EUR 33.6m will be repaid in quarterly instalments until the end of 2017.

“As a result of the continuing weak consumer spending in secondary Romanian cities, the retailers’ sales in our shopping centers there have continued to underperform, while rent levels have not recovered. Therefore, some of our projects have been in covenant breach and GTC decided to guarantee the repayment of these loans on corporate level. GTC is committed to its long-standing relationships with its financing banks and eager to further strengthen its reputation as a trustful and reliable borrower. The successful loan restructuring with EBRD, as well as the recently completed loan restructuring with our Hungarian banks, allows GTC to match its debt repayments with its operating cash flows and additionally removes any existing project related loan covenants. This will allow GTC to continue with the restructuring of its remaining non-performing portfolio in the most efficient way and to focus on the realization of our growth strategy which we see as single most important catalyst to further value creation for our shareholders” – said Thomas Kurzmann, GTC’s Chief Executive Officer.

Additionally, GTC has fully repaid its loan in relation to Avenue Mall in Osijek, Croatia, and has signed a preliminary agreement for the sale of the SPV that owns the asset. The closing of this transaction is expected for July 2015 subject to customary closing conditions.

Finally, GTC has restructured loan agreements with MKB and OTP, its two Hungarian lenders, which originally financed construction of Galleria Varna. This loan, which amounts to approx. EUR 12.5m, will be amortized in equal quarterly instalments until the end of 2018. In parallel, GTC has signed a preliminary agreement for the sale of Galleria Varna and fully repaid the loans related to this project. Closing of this transaction is expected for July 2015 also subject to customary closing conditions.

The company expects that the restructuring of all the above loans will be finalized this Summer, as the last loan restructuring agreement related to Galleria Stara Zagora is scheduled for signing in July.


GTC obtains permit for Galeria Polnocna mall in Warsaw and starts its growth path

Globe Trade Centre S.A. (“GTC”) reaches an important milestone, as the company obtains a building permit for Galeria Północna project in Warsaw, Poland, one of GTC’s key retail projects.

Obtaining the building permit for Galeria Północna opens a new chapter in GTC’s history. “We are delighted to conclude the first formal stage of Galeria Północna development” – said Thomas Kurzmann, GTC Chief Operating Officer.Constructing new buildings, making our visions come to life is in GTC’s DNA. I am sure that Galeria Północna, with its design and set of features, will contribute to Warsaw’s Białołęka district development. Thanks to our investment, Białołęka will become even more attractive, convenient and enjoyable place to live” – added Thomas Kurzmann.

Local authorities working with GTC

I am happy that first stage of this project is now concluded. A modern, functional and architecturally attractive shopping mall has been expected by our district inhabitants for a long time. We keep our fingers crossed for construction schedule, according to which only two years from now, in the very heart of Białołęka one will be able not only to go shopping, but also see a movie in multiplex cinema or relax in exceptional surroundings on a rooftop garden” – said Piotr Jaworski, Mayor of Warsaw’s Białołęka district.

The project of Galeria Północna had received continuous support from City of Warsaw and Białołęka’s authorities through all steps of building permit application process. Białołęka’s authorities engaged with GTC into constructive dialogue on needs of inhabitants of Białołęka and infrastructure investments. Galeria Północna will serve one of the most dynamically growing parts of Warsaw, now a home to more than 140 thousand people.

First major shopping centre in north-east Warsaw

Our project will change the dynamic of Warsaw’s retail market. Galeria Północna will be the first major modern shopping and entertainment centre located in north-eastern part of Warsaw. Many customers will be no longer required to travel long distances to reach shopping destinations which meet their aspirations, because they will be able to find them nearby. Also, with an unmet demand for quality shopping in a large catchment area of the project, we are convinced that Galeria Północna will be a huge success” – said Jacek Wachowicz, GTC Management Board Member.

About Galeria Północna

Galeria Północna has already attracted renowned tenants, including Cinema City, LPP Group, Carrefour, H&M, and many more. Designed by renowned APA Wojciechowski and Tzur Architects studios, the project will offer approximately 64,000 sq m of leasable space, while the customers will be provided with ca. 2,000 parking spaces. Galeria Północna will feature numerous leisure solutions, including publicly accessible rooftop with a garden, walking paths and a playground. In order to confirm Galeria Północna’s status as one of the greenest buildings in its class in Poland, GTC plans to obtain LEED Gold certification for the investment.