GTC Galleria Burgas

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Translated version of this PSD: Bulgarian The EBRD is providing a €30 million senior loan under an A/B loan structure and an equity / shareholder loan investment of €7.6 million to Galleria Burgas EAD, wholly- owned by GTC Real Estate Investments Bulgaria B.V., which in turn is owned 100% by Globe Trade Centre S.A. Poland (“GTC”). The proceeds are being used for the development of Galleria Burgas, a third generation shopping centre with a Gross Leasable Area (GLA) of 35,700 sq.m. in Burgas, Bulgaria. The proposed project will deliver an important response to the current crisis by providing liquidity to the commercial real estate market in regional Bulgaria, which has come to a complete freeze during the financial crisis. Additionally, the project will contribute to narrowing the gap in retail supply in Bulgaria, which has the lowest proportion of retail offering of all EU countries. The Project will introduce a new retail/leisure model to the region, where retail and leisure markets remain both fragmented and underdeveloped. Based on the quality of this offering, the project will attract quality tenants not present in the region and will contribute to an improved competitive environment, including through a decline in rental rates. As with other GTC Galleria developments, the Project will set a standard for innovative construction quality, including energy efficiency. The Project has very good energy efficiency technical characteristics and its emission levels are expected to significantly outperform minimum national and EU standards. Furthermore, the project will lead to the dissemination of international best practice standards to local sub-contractors and will introduce improved business standards in areas such as real estate management. GTC has been active as a developer in the Central Eastern European real estate markets since 1994, operating in Poland, Czech Republic, Hungary, Romania, Serbia, Croatia, Ukraine, Slovakia and Bulgaria. GTC has positioned itself as one of the leading developers in CEE with 3.6 million gross sq. m. of office, retail and residential space under management. 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 and GPR 250. (i) Senior A/B Loan of €30 million, of which 50% syndicated to a B Lender (ii) Equity / Shareholder Loan investment of €7.6 million Up to €76 million. Category B (2008). The project's environmental and social impacts are readily identified and addressed through adequate mitigation measures. Information Reviewed The Bank's environmental and energy efficient specialists reviewed the completed Environmental and Social Due Diligence Questionnaire and visited the project site (March, 2010). Due Diligence Outcomes The client, GTC is an existing client to the Bank with a number of property projects. The outcomes of the environmental, energy efficiency and social due diligence are as follows: The project is located in a former industrial zone and fully in line with the municipality Burgas' brown site re-generation plan; the project has been developed to date in accordance with national law and good international practice; the project has been notified to the public through a local news paper; the soil test was carried out for the site which indicated that there was no contamination; there are no significant environmental and social impacts associated with the project; and the project design has already incorporated many energy efficiency elements and will further enhance its energy efficiency with the Bank's specific technical advisory. An Environmental and Social Action Plan will be developed to address construction worker health and safety issues and grievance mechanisms for the construction workers and neighbouring communities. Monitoring The Bank will monitor environmental and social performance of the project through reviewing an annual environmental and social report and monitoring visit where necessary. None. Hagai Harel, GTC S.A. Tel: + 48 22 60 60 770 Email: hagai.harel@gtc.com.pl