GTC rethinks its assets

Globe Trade Center (GTC) has signed a memorandum for the sale of the Mokotów Business Park (MBP), Poland's largest office complex. The firm, which is also behind Warsaw's Galeria Mokotów, Kraków's Galeria Kazimierz, nine office and two residential complexes in Poland, is selling MBP to the US Heitman real-estate fund for $287.5 (zł.872.8) million.

"The transaction is part of the company's strategy of restructuring its portfolio, [which is aimed at] reducing office properties and introducing a balance between the number of retail, office and residential developments," says Mariusz Kozlowski, director of development and investor relations.

The deal is scheduled for completion in March 2007. In the meantime, the Heitman Fund needs to obtain the necessary approval and funding for the purchase. Once completed, the deal will bring a capital gain of $52 (zł.157.8) million. According to Kozłowski, GTC will use part of the income from the sale to pay off debts and the remaining $100 (zł.303.6) million will be used for an extensive investment campaign. The company is completing new office developments in Łódź and Kraków.

GTC's H1 results show that its operational revenues increased by 15 percent on H1 2005, and amounted to zł.166.6 million. Its net profit in H1 2006 reached zł.152.7 million, compared to zł.16.9 million in H1 2005. According to Kozłowski, the jump came from the company's development and expansion to new markets, new complexes, improved yields and a boom in the Balkans.