Lone Star mulls sale of controlling stake in CEE developer GTC

US private equity firm Lone Star said on Tuesday that it is evaluating the sale of its 61% stake in the Warsaw-listed CEE-focused real estate developer Globe Trade Centre (GTC) to a strategic or financial investor.

Lone Star has hired J.P. Morgan and UBS to help it review its options regarding its investment in GTC, which has a market cap of €1 bn (PLN 4.3 bn) and a portfolio valued at €2 bn.

The US firm initially invested in GTC in 2013 with the purchase of a 28% stake from the Kardan group for €160 mln and subsequently took part in the company's €140 mln capital increase in October 2015.

'A possible sale of Lone Star’s entire stake to a strategic or financial investor comes on the back of GTC’s strong performance since Lone Star’s initial investment in 2013,' Lone Star said.

Shares in GTC gained almost 20% last year.

Lone Star does not plan to sell any of its shares in GTC on the stock exchange via an accelerated book building, it added.

GTC owns and manages €2 bn of assets, largely office buildings and shopping centres, for a total of roughly 650,000 m2 all located in five capital cities, namely Budapest, Bucharest, Belgrade, Zagreb and Sofia. It is currently developing 130,000 m2 of new space across five projects.

Events

Latest news

Best read stories