GTC, Unibail-Rodamco finalise EUR 205m loan in CEE

Real estate developer Globe Trade Centre (GTC) and pan-European property giant Unibail-Rodamco have finalised a EUR 205 mln loan agreement with a consortium of German banks.

Tel-Aviv and Amsterdam-listed firm Kardan - GTC's parent company - said in a statement that the loan was one of the largest real estate financing deals in Central Eastern Europe. The banking consortium included Berlin-Hannoversche Hypotheken Bank and Westdeutsche ImmobilienBank (Westimmo).

The loan will be partly used to refinance Galeria Mokotów in Warsaw. GTC and Unibail-Rodamco each hold 50% ownership of the mall. Net proceeds from the loan amount to about EUR 120 mln, according to Kardan.

The term of the loan is 5 years, with a 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 EUR 378 mln ($529m) for Galeria Mokotów, reflecting an initial loan-to-value ratio of 54%.

'GTC has capitalised 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 in 2000, and further extended in 2002 and 2006. Today, it comprises 62,500 m² of net rentable area. Unibail-Rodamco acquired a 50% interest in the shopping centre in 2003.