Globe Trade Centre income grows as portfolio expands

Posted On Thursday, 25 August 2016 17:47 Published by
Rate this item
(0 votes)

Globe Trade Centre grows its income-generating portfolio 9% in the six months to June.


Eastern Europe-focused property developer and manager Globe Trade Centre, which took up an inward listing on the JSE last week, grew its income-generating portfolio 9% in the six months to June. The company’s net operating income increased 5% to €41m.

CEO Thomas Kurzmann said local institutional investors had expressed a desire to gain exposure to property companies in the Eastern European real estate sector, which offered better growth than many other markets in the world.

Plans were also on track to open a 64,000m² shopping centre, Galeria Pólnocna, in the Polish capital, Warsaw, at the end of August 2017.

The mall was the first major shopping centre to be developed in Warsaw in about eight years, Kurzmann said.

GTC, which has a market capitalisation of nearly R12bn, intended to pay its first dividend to South African investors in 2018, he said.

The company owns primarily A-grade office and retail properties in high-demand nodes within Poland and the capital cities Budapest, Bucharest, Belgrade, and Zagreb. As of June 30 2016, the book value of the group’s portfolio was €1.45bn. The group’s completed commercial properties accounted for 79%; commercial properties under construction made up 10%; a commercial landbank intended for future development or for sale accounted for 8%; residential projects for 2%; and assets held for sale accounted for 1%.

Kurzmann said GTC and its management team had spent much of the reporting period trying to boost the quality of its office assets. "GTC reported remarkable results for the first half of 2016. The realisation of our growth strategy became evident with our investment of €95m in value-accretive office properties, and a plot of land for an office development in the central business district of Budapest.

"We completed the development of the University Business Park B office building, and the Budapest team commenced preparation for the construction of the White House office building in Budapest. The construction of Galeria Pólnocna and two office buildings in the FortyOne project continue according to schedule."

GTC, listed on the Warsaw Stock Exchange in 2004, changed its strategy from development to one of development and asset management in 2015.

source: Business Day

Last modified on Thursday, 25 August 2016 17:57

Most Popular

Africrest Properties completes mixed-use development, Stanley Studios in Johannesburg

Jan 21, 2020
39 Stanley Avenue
What could be better than living in an extremely well-priced apartment or working in…

Three stocks to boost your portfolio in 2020

Jan 22, 2020
Dr Adrian Saville CEO Cannon Asset Managers
After enduring a trying decade under the mismanagement and malfeasance of Jacob Zuma,…

New hotspots driving cost hikes in key data centre markets - thriving market in South Africa

Jan 21, 2020
Dan Ayley Turner and Townsend
Major global data centre markets are seeing soaring construction costs as development in…

Equites Property Fund Limited to develop a R1.3 bn warehouse for Pepkor

Jan 21, 2020
Andrea Taverna Turisan  CEO Equites Property Fund
Equites Property Fund Limited (Equites) today announced an agreement with leading…

2020 Commercial Property Themes –Electricity supply and cost will be a key wildcard for the Commercial Property Sector this year

Jan 23, 2020
John LoosFNB
Will electricity supply reliability and cost increases become a key issue again in 2020?

Please publish modules in offcanvas position.