Kardan subsidiary GTC and Unibail Rodamco finalize €205 million property refinancing (PL/NL)

Kardan N.V. ("Kardan"), active in Real Estate, Financial Services and (Water) Infrastructure in emerging markets, announced that its real estate developer in CEE/CIS, Globe Trade Centre S.A. ("GTC S.A."), and Unibail Rodamco S.E. (UR), finalized a €205 million loan agreement, partly used for refinancing their jointly owned shopping mall. The mall, Galeria Mokotów in Warsaw, is a leading shopping mall in Poland. Net proceeds from the loan amount to approx. €120 million.

GTC S.A. and UR, each of them holding 50% of Galeria Mokotów, secured one of the largest real estate financing loans in Central Eastern Europe with a consortium of German banks. The consortium included Berlin-Hannoversche Hypotheken Bank A.G. and Westdeutsche ImmobilienBank A.G.

The term of the loan is 5 years, with the Borrower's prolongation option for an additional 2 years. The interest is based on 3-month EURIBOR plus a margin of 2.25%. The refinancing was based on a valuation of €378 million ($529 mln.) for Galeria Mokotów, reflecting an initial LTV ratio (Loan-to-Value) of 54%.

"GTC has capitalized on its long-established relations with the leading European banks, which combined with the excellent financial standing of both GTC and Unibail Rodamco and prime quality of the asset - Galeria Mokotów, allowed to secure such a large amount of financing despite difficult credit market conditions. The proceeds from the loan will further increase cash resources of GTC" – said Eli Alroy, GTC S.A.'s Chairman of the Supervisory Board.

Galeria Mokotów was developed by GTC S.A. in 2000, and further extended in 2002 and 2006. Today it comprises 62,500 m² of net rentable area. Galeria Mokotów was the first modern shopping mall in Poland and still remains one of the most prestigious and best performing retail projects in the country. In 2003, UR acquired a 50% interest in Galeria Mokotów.

Source: Kardan

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