Subsidiaries of Globe Trade Centre S.A. (GTC) are beginning to carry out new investments in Romania and Bulgaria. GTC Bulgaria has acquired 75% of shares in the company building a shopping mall in Stara Zagora, Bulgaria. GTC Romania has purchased land for a residential investment in Bucharest.
GTC Bulgaria will build the first modern shopping center in Stara Zagora. Stara Zagora is a city located on the route from Sofia to the Black Sea coast. In this city of 180,000, two investments important for the Bulgarian market are currently underway: the country's largest brewery, being built by Heineken, and construction of a thermal power station. GTC acquired a plot of 12,500 m² in the city and plans to construct a shopping mall with net area of 23,000 m². The opening of the mall is planned for Spring 2009. The value of the investment is €42 million, of which €5.5 million represents the cost of purchase of the site (€4.1 million is the part attributable to GTC Bulgaria).
The shopping center in Stara Zagora, GTC's second investment of this type in Bulgaria, is being carried out with the participation of a local partner holding 25% of shares in the venture. In May of this year, GTC Bulgaria also acquired a majority stake in a company constructing a shopping mall in Varna. The company is currently planning further investments in this sector in Bulgaria, which has one of the lowest levels in the region of modern retail space per resident. Since EU accession, dynamic growth of the commercial sector is expected in this country. The demand for modern buildings will grow along with growth in the income of the local population, additionally strengthened by purchasing power.
GTC's latest investment in Romania began with acquisition of 66,7% of shares (cost: €9,61 million) in the company possessing 46,500-m² plot, on which 85,000 m² of apartments will be built (57,000 m² is the part attributable to GTC Romania). The site is located in northern Bucharest, in a popular and rapidly growing residential district, not far from the investment (100,000 m² of middle- and upper-class apartments) which GTC acquired in early July of this year, near the prestigious American School.
This investment is planned to be completed in 2009-2010. In addition to holding a majority share, the company will also be responsible for management of the project, for which it will receive a fee equal to 5% of the investment costs (excluding the cost of land).
After this transaction is finalized, GTC's completed and under development investment portfolio in Romania will include:
- 427,000 m² of residential space
- 115,700 m² of retail space, and
- 98,400 m² of office space.
Meanwhile, the development projects conducted by GTC in Bulgaria will include:
- 60,700 m² of retail space, and
- 8,500 m² of office space.