Globe Trade Centre S.A. and its three 100%-owned subsidiaries have agreed with Heitman European Property Partners III Fund the terms of sale for Mokotów Business Park in Warsaw. The property is the largest office complex in Poland and includes nine buildings with 107,000 m² of net rentable area, and the right to perpetual usufruct of 7.3 hectares of land.
The execution of the final transaction is subject to the positive outcome of due diligence, the obtainment of relevant permits and financing by the Buyer, and should be completed before the end of 2006, but in any case not later than by 31st March 2007.
The price of the transaction has been agreed at approximately €209 million ($287.5 million), free of any liabilities and encumbrances. Such a price shall bring GTC an estimated profit before tax of approximately €29 million ($40 million) over the book value of the property.
Mokotów Business Park located between two major intersections in Mokotow, enjoys a convenient location between the city center and Okêcie International Airport, with easy access to public transportation and ample parking. A wide range of services are available on-site (banks, restaurants, medical center, pharmacy, post office and many other amenities) in addition to shopping and service facilities in Galeria Mokotow which stands adjacent. It is for these reasons that the business park has attracted renowned tenants, including some of the largest international corporations.
Development of MBP started in 1995 and was GTC's first investment.
The sale of Mokotów Business Park is part of GTC's strategy to further diversify its property portfolio both in terms of sector, geographical spread and maturity of assets.