Planned capital increase will stimulate GTC’s further growth
Globe Trade Center, focused on CEE and SEE, proposes to its shareholders to increase its share capital and issue up to 140 million of new shares. The company intends to invest the additional equity capital for the acquisition of value added, cash-generating assets, as well as for the construction of selected existing development projects.
Following a change in the shareholder structure at the end of 2013, GTC revised its mid-term strategy to take advantage of the new opportunities in the current market environment; the focus will be on creating value through opportunistic acquisitions and active portfolio and asset management of its growing portfolio in CEE and SEE, supplemented by carefully selected development activities of its existing landbank.
To effectively execute on this strategy, GTC’s Management Board recommends to its shareholders to approve and participate in the announced rights issue of up to 140 million of new shares. The newly raised capital will fuel the company’s further growth and profitability.
“We have carefully selected potential acquisition and development targets that meet our stringent investment criteria. We will acquire value added, cash-generating assets and selectively develop projects from our existing landbank which offer the highest risk adjusted returns to GTC. We will focus our new investments to major cities in Poland and capital cities in CEE and SEE, namely Warsaw, Bucharest, Budapest and Belgrade. We strongly believe that the commercial real estate market in combination with the current fiscal policy of the European Union resulting in an extraordinarily low interest rate environment creates unique acquisition opportunities allowing for accretive growth. Our main shareholder, Lone Star, fully supports the management's revised strategy which is the main objective for this capital increase. We are committed to convince our other shareholders of the merits of this strategy and to vote for the capital increase,” Thomas Kurzmann, GTC’s Chief Executive Officer commented.
Lone Star Fund, GTC’s main shareholder, confirmed its full support of the strategy and the management’s initiative to issue additional capital.
“This capital increase is important to further strengthen GTC’s balance sheet and for the execution of its growth strategy,” added Alexander Hesse, Chairman of the Supervisory Board of GTC.