Real estate group GTC first Polish company to list on JSE

August 18, 2016

Real estate group Global Trade Center(GTC) will list on the main board of the JSE on Thursday under the share code GTC.

GTC, which develops and owns office and retail properties inPoland and capital cities throughout the central and eastern Europe (CEE) region, as well as the south-east Europe (SEE) region, will be the first Polish inward-listed company on the JSE.

This will be the company’s second listing, as its primary listing is on the Warsaw Stock Exchange.

Speaking to a media delegation in Sandton, Gauteng, on Wednesday, CEO Thomas Kurzman said that the company’s balanced portfolio of €1.3-billion offers an attractive “total return” proposition for South African investors interested in high-quality assets in Poland and the capitals of high-growth CEE and SEE countries.

“Our listing on the JSE is a step in enabling our strategy to significantly increase our portfolio to over €2-billion, within 36 months, through value-enhancing acquisitions, development activities and asset-value improvements,” he said.

The JSE has granted the GTC a secondary inward listing of up to 460.22-million shares on the real estate holdings and development sector.

Kurzman noted that, although the property group was not raising capital from South African investors on this occasion, it believed that the inward listing would increase the liquidity and tradability of its shares.

He added that GTC had a strong management team with over 20 years’ experience in chosen CEE and SEE markets, offering noteworthy growth potential.

The management teams in each capital is backed by the experienced management board and prominent supervisory board.

“We will continue to actively manage our current and future income-generating commercial property portfolio to increase operating performance, efficiently diversify tenant risk and enhance rental income, while developing selected unique, high-quality projects.”

As of December 31, 2015, the GTC group consisted of the company and 99 entities directly or indirectly controlled by the company, as well as seven jointly controlled and associated entities.

The group has operations in Poland, Romania, Hungary,Croatia, Serbia and Bulgaria; it also conducts operations in the Czech Republic through its associates.

GTC has 25 completed commercial properties, including 20 office properties and five retail properties with a combined space of 524 000 m2, of which the group’s proportional interest amounts to 500 000 m2 of net rentable area (NRA).

GTC also has three commercial projects under construction, including two office projects and one retail project with a total NRA of 90 000 m2, of which the group’s proportional interest amounts to 9 000 m2 of NRA.

A commercial land bank designated for future development, with about 862 000 m2 of NRA, as well as residential projectsand a land bank of 369 000 m2 NRA designated for residential use, are also part of the group’s portfolio.

As at December 31, the book value of GTC’s portfolio amounted to €1.3-billion, with the company having generated about €84-million a year of net operating income.

Based on the group’s assessment, 97% of the portfolio is core while the remaining 3% is noncore, including assets held for sale and residential projects.

“We look forward to establishing strong relationships with the South African investment community as we drive awareness of our ‘total return’ proposition through a unique mix of current activities and future strategic initiatives,” Kurzman said. Source: Engineering News