GTC - Regional Retail Centres

complete

The proposed project consists in a senior A/B loan facility to be extended to Special Purpose Companies (“SPC”) 100% owned by Globe Trade Centre S.A. Poland (“GTC”) and Aura Investment Ltd. (“Aura”) (jointly “the Sponsors”). The SPCs will be established to acquire, develop and manage commercial centres in Romanian cities where population exceeds 100,000 inhabitants. The facility will support the expansion of the Sponsors to regional cities in Romania and diversification into the retail segment. The main rationale of the project is to directly promote competition in the property sector by supporting strategic investors to expand into regional cities in the Romanian market and indirectly, by attracting quality foreign tenants to the local market, in addition to introducing international standards of retail development. The project represents one of the very few international quality chains of regional retail centres in Romania. Additionally, the Bank will support this commercially effective structure, to create a replicable practice in the financial markets. One of the expected results of the project will be the encouragement it should provide for commercial banks to finance similar structures in the future. GTC has been active as a developer in the Central Eastern European real estate markets since 1994, operating in 9 countries, including Poland, Czech Republic, Hungary, Romania and Serbia and Montenegro. GTC has positioned itself as one of the leading developers in CEE with over 1,500,000 sqm of office, retail and residential space under different stages of development. It is listed on the Warsaw Stock Exchange since May 2004 and is also a member of various prestigious equity indexes, such as the WIG 20, MSCI, GPR 250 and CAIB REX. Aura was established in November 1992 and is listed on the Tel Aviv Stock Exchange. Until September 2005, Aura acted primarily as a holding and management company.. Since end of 2005 Aura is involved in real estate development , alongside experienced investors, both in Israel and other countries. Senior A/B Loan in total amount of EUR 80 million. To be confirmed. Screening category and justification B/1. The Project has some environmental impacts which can be readily identified and addressed by adequate mitigation measures. Due diligence undertaken and outcomes The Sponsor is an existing client, and their environmental reporting on the preceding GTC Belgrade project has been satisfactory to date. The soil and ground water contamination examinations for the three specific sub-project sites of the Project were carried out, and that the sites are not contaminated.  The Project has been prepared in accordance with good international practice to date. Implementation requirements The Sponsor will be required to implement the Bank’s Environmental Procedures for Multi-Property Developments by carrying out adequate environmental due diligence and monitoring for each sub-project as well as to ensure that each sub-project complies with national and EU environmental, health and safety standards and requirements as well as to submit an Annual Environmental Report to the Bank. None. Hagai Harel, GTC S.A. Tel: + 48 22 60 60 770 Email: hagai.harel@gtc.com.pl