Project description
and objectives:
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The EBRD invested in Globe Trade Centre S.A., an established property
developer in Poland, in order to support the growth plans of the company, to
enable it to raise additional funds in the future through a listing on the
Warsaw Stock Exchange and to contribute to improvement of liquidity on the
Warsaw Stock Exchange.
The operation will support the listing of an established property development
company in Poland and improve the liquidity of its share listing on the Warsaw
Stock Exchange (WSE). In so doing, the EBRD’s participation in the IPO is
expected to strengthen investor confidence in Poland’s capital markets in
general and to improve liquidity on the WSE.
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Transition impact:
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The transaction is expected to create liquidity and depth in Polish equity
markets and to attract new sources of finance for property investments. The
project is expected to create a market benchmark upon listing of the company.
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The client:
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Globe Trade Centre S.A., (GTC) was incorporated in Poland in 1994 with the
objective of supplying the country’s growing demand for Western quality
commercial and residential property at affordable prices. It has since become
one of Poland’s leading property developers. GTC has a completed property
portfolio of 138,000 rentable sqm, another 18,000 sqm rentable under
construction and about 140,000 sqm in the planning stage.
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EBRD finance:
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US$ 15 million (€17.15 million) equity investment in GTC (about 5.7 per cent
of the company’s stock).
In addition, the Bank has signed a Sale Option Agreement with GTC. According
to the Agreement, the EBRD has the right to sell to the company the shares
purchased at the offering price increased by the cost of capital if an agreed
percentage of the shares of the company are not listed on the Warsaw Stock
Exchange within three years (or five years at the EBRD's discretion) from the
subscription date at a price higher than the zloty equivalent of US$ 17.95 per
share.
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Total project cost:
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Environmental impact:
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The project was screened B/0, requiring an environmental analysis. The
analysis confirmed the following points:
An independent report carried out for the IPO confirms that all appropriate
measures have been taken to ensure site safety at Mokotow Business Park and
Galeria Mokotow. Appropriate remedial works have been carried out in
accordance with Polish environmental standards. An environmental impact
assessment (EIA) has been undertaken for the Galeria Mokotow project, and all
necessary remedial works were carried out for the site of Galeria Office. The
independent report and other documents also state that remedial works have
been completed at the site of Wielicka (formally occupied by a milk factory)
and confirm that there is no significant contamination.
Construction of on-going and future projects will be undertaken in accordance
with Polish and EU worker health and safety legal requirements and standards.
Most of the necessary environmental permits have been received and the
remainder have been applied for. The projects have complied with and will
comply with all local fire, safety and emergency procedures. Sprinklers will
be installed throughout according to authorities' requirements.
Existing trees were replanted in new locations at the site of Galeria Mokotow,
and energy conservation measures will form a major part of the GTC's projects
along with the provision of clean air filtration systems.
The remediation and use of "brownfield" sites will result in environmental
improvements in the area.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Philippe Mansion, Operation Leader: mansionp@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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