GTC Group (“GTC”), a renowned public commercial real estate company operating in Central, Eastern and Southern Europe since 1994, has announced that the Johannesburg Stock Exchange Limited (“JSE”) has approved its inward listing on the bourse’s main board. GTC is an owner and developer of primarily Class A office and retail properties located in Poland and capital cities throughout the CEE and SEE region.
Upon listing the company will be included in the “Real Estate Holding and Development” sector and become the first Polish inward listed company on the JSE. GTC’s primary listing will remain on the main market of the Warsaw Stock Exchange.
“Over the last few years, we have observed significant interest from South African investors in high-quality SEE and CEE commercial real estate properties as evidenced by recent transactions in Poland, Romania, Serbia and Croatia. Based on this increased interest, we have decided to pursue a secondary listing on the JSE to enlarge our shareholder base and provide South African investors with an opportunity to invest in a premier commercial real estate owner and operator within the region. GTC not only has a uniquely located Class A office and retail portfolio, but also has significant embedded growth associated with our current development pipeline,” commented GTC CEO, Thomas Kurzmann.
South African institutional demand for property stocks remains robust. In particular, South African investors have shown a strong appetite for foreign-domiciled, quality inward listed property stocks that have a proven track record, with over R80 billion being invested in these stocks over the last three years.
GTC presents a clear and defined growth path with a compelling total return proposition. Whilst the SA investor community remains concerned about expensive REIT valuations, GTC offers reasonable upside in the future and significant embedded NAV growth potential. The platform offered by GTC comprises 40 commercial properties providing approximately 715,000 sqm of office and retail space to its tenants and customers in Poland, Serbia, Hungary, Romania, Croatia, Bulgaria and the Czech Republic. The portfolio is valued at €1.3 billion as at 31 December 2015 and generates approximately €84 million in annual net operating income.
In addition to the current portfolio of income generating assets, GTC is currently developing three projects totalling 82,000 sqm of retail and office space in Warsaw and Belgrade. The company is currently considering another four commercial projects with the commencement of construction planned for 2016/2017.
“GTC is a renowned CEE commercial real estate owner and developer with an established track-record and we anticipate that this inward listing will increase the liquidity and tradability of our shares. In addition, this listing will also drive increased awareness of our current activities, future strategic initiatives as well as position our brand positively with a new group of institutional investors,” concluded Kurzmann.
GTC does not plan to issue new shares as part of the secondary inward listing.
Investec Bank has been appointed as Corporate Advisor and JSE Sponsor in relation to the proposed listing.