Globe Trade Centre S.A. (“GTC”), one of the leading commercial real estate companies active in Central Eastern Europe, recommends to its shareholders to issue up to 140 million new shares. The raised capital is intended to be used to finance acquisitions of yielding properties, where GTC will unlock value added potential through its regional platform and asset management skills, as well as organic growth from selected development projects.
The CEE and SEE markets are now offering attractive investment opportunities arising from the high yield spread in a low interest rate environment allowing for accretive growth. Rents in many capital cities in the region are at their historical lows. The combination of these factors creates investment opportunities for GTC.
“GTC has completed its restructuring phase and achieved good and stable operating results. Now, GTC is in good shape to take advantage of the attractive investment opportunities that we have identified to stimulate company growth. The potential acquisitions, to be partially financed with the new capital, will enhance GTC’s investment portfolio, effectively creating shareholder value,” said Thomas Kurzmann, GTC’s Chief Executive Officer.
Recently, GTC has carefully selected a number of potential acquisition targets that meet its investment criteria. GTC aims to invest in yielding properties with value added potential, which can be realised through its regional platform and asset management skills. Potential acquisition targets are located in Poland and capital cities in the CEE and SEE region.
GTC plans to acquire assets predominantly in the office and retail sectors. These acquisitions and selected project developments, most importantly the two shopping malls in Warsaw, should allow GTC to boost its real estate portfolio and increase cash flow from operations.
“We see acquisition opportunities that can be translated into highly accretive growth at GTC. In order to take advantage of these opportunities GTC needs to raise equity. We believe the execution of our growth strategy will change GTC’s profile into a cash generating company in the mid-term,” added Alexander Hesse, Chairman of GTC’s Supervisory Board.
The shareholders’ meeting that will decide on planned shares issue is scheduled for 13 October 2014.