MBP has been sold for USD287m to funds managed by Heitman European Property Partners
GTC commences new investments in seven major Polish cities.
On the 1st December 2006 the three 100%-owned subsidiaries of Globe Trade Centre S.A. (GTC) signed with funds managed by Heitman European Property Partners III a final agreement to sell Mokotów Business Park in Warsaw for USD 287 million.
Mokotów Business Park comprises 107,000sqm of NRA in nine buildings. It has been the first and the largest GTC investments.
The transaction is a part of GTC strategy of rebalancing property portfolio in Poland, including the sale of mature assets in Warsaw and expansion in other large Polish cities.
GTC started this month construction of the first building in Platinium Business Park. The building will offer 9,000sqm of high-standard office space in prime location across from Mokotów Business Park and is scheduled for completion in Q4 2007.
Next to recently completed Topaz building, the Company is going to start 15,000sqm Nefryt Building. In parallel, in the vicinity of the Warsaw International Airport, construction of the first building in Okęcie Business Park is beginning.
Currently, in addition to three office developments in Warsaw comprising 33,000sqm, GTC is developing projects in Kraków, Poznań, Wrocław, Łódz, Częstochowa and Katowice. The Company expects that in 2007 approx. 250,000sqm of net space will be under various stage of development in the seven cities in Poland.
The property markets in Poland are showing strength in all three sectors. The office vacancy rates in major Polish cities range from 1% to 7%. Recently the demand for quality office space has significantly increased, with the biggest requirements coming from outsourcing firms and business process off-shoring operators.
Concurrently GTC is rapidly expanding its operations in Central & Eastern Europe.
GTC is benefiting from the booming regional real estate markets, which has been reflected in this year financial results. In nine months of 2006 GTC achieved more than USD234m profit.