Kardan seeks to sell stake in CEE developer

Amsterdam-listed group Kardan has announced that a subsidiary is seeking a 'strategic investor' to acquire its 27.75% stake in CEE real estate developer Globe Trade Centre (GTC).

The subsidiary, GTC Real Estate Holding, is in a process to 'possibly sell, directly or indirectly, its share' and a few investors from a selected list are performing due diligence with the aim of submitting binding offers, Kardan said.

Kardan estimates that the process could lead to a possible sale before the year-end. Citigroup Global Markets is managing the process on behalf of GTC RE.

There is no certainty that the process will result in a sale as this will, among other factors, depend on the economic terms of the binding offers to be received, Kardan added.

Kardan is active in real estate, water infrastructure and financial services in emerging markets. It said that the decision to consider selling its 27.75% stake in GTC was predominantly due to Kardan and GTC RE’s ‘liquidity needs’ in relation to loan repayment obligations as well as the upcoming repayments of principal and interest of Kardan’s debentures in February 2014 and 2015.