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.


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