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Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

WARSAW-CEE/CIS commercial and residential developer Globe Trade Centre and Unibail Rodamco have finalised a €205-million loan agreement, partly for refinancing their 50-50 owned Polish shopping mall, Galeria Mokotów in Warsaw. Net proceeds amount to some €120 million.

GTC is controlled by emerging markets property, financial services and infrastructure company Kardan, listed in Tel Aviv and Euronext Amsterdam. The financing, one of the largest in the CEE region, was secured with a consortium of German banks. The term is five years, with a 2-year prolongation option. Interest is based on three-month Euribor plus 2.25%. The refinancing was based on a valuation of €378 million for Galeria Mokotów, reflecting an initial LTV ratio of 54%.

Galeria Mokotów, developed by GTC in 2000 and extended in 2002 and 2006, now has 62,500 square meters of net rentable area. Listed in Warsaw, GTC reported first-half net loss of €9.6 million, mainly due to some €55.2 million in write offs on completed assets. This loss was largely offset by the revaluation of investment property under construction and newly completed property, which contributed €50.7 million. Revenues were up 138%, and gross margin from operations up 69%. Total assets were €2.6 billion, and the value of investment property €2 billion. Revenues from rental operations advanced 40%, while residential sales surged 889% to €40 million. In Q2 ’09, operating revenues were €38 million. GTC said it has 48% long-term debt to total assets. Some 80% matures in 2014 or later.

In October, GTC will complete and open the 48,000-square-meter Galeria Jurajska shopping centre in Częstochowa, southern Poland – its largest development, now nearly fully let. Its 51,400-square-meter City Gate office development in Bucharest, Romania is also due for completion soon. With financing secured for all projects under construction, it expects to complete some 300,000 square meters of net office and retail space in 2009–2010.

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