Globe Trade Centre SA Explores Partial Sale of German Residential Portfolio
Polish real estate developer Globe Trade Centre SA is in talks to sell approximately 45% of its recently acquired German residential portfolio, aiming to deleverage and refocus on core markets.
Real EstatePortfolio SaleDeleveragingGtcGerman ResidentialReal Estate NewsOct 10, 2025
We already started marketing among certain potential buyers,” Czaplicka stated. The company has identified the specific properties it intends to sell, although the first transactions are not expected to occur until next year. The proceeds from these sales will be used to repay a significant portion of the €190 million ($220 million) financing provided by Baupost Group and Diameter Capital Partners to acquire the portfolio.
The decision to sell part of the German residential portfolio marks a strategic shift for GTC. At the time of the acquisition, the deal represented a departure from the company's usual focus on commercial real estate in central and Eastern Europe. However, Czaplicka emphasized that the company plans to concentrate on its core markets going forward, contingent on market conditions.
This move is part of GTC's broader strategy to deleverage its business amid pressures on real estate valuations and rising financing costs. In addition to the planned asset disposals, GTC has secured a refinancing for its high-yield bond due in 2026. The company issued €455 million of securities due in 2030 this month, following an announcement of plans to buy back existing bonds. Schroder Investment Management was set to purchase €275 million to €300 million of the new issue, according to an earlier statement.
GTC is also working on extending €300 million of short-term bank debt by the first quarter of next year. Chief Financial Officer Jacek Bagiński noted that discussions are already well advanced, and the loans are likely to be extended for a period of five to seven years. These financial maneuvers are crucial for GTC as it navigates the current market challenges and positions itself for future growth.
The company's strategic decisions reflect a broader industry trend of real estate firms seeking to optimize their portfolios and financial structures in response to changing market dynamics. GTC's proactive approach to deleveraging and refocusing on core markets is expected to strengthen its position and resilience in the competitive real estate landscape.
Frequently Asked Questions
What is GTC planning to sell?
GTC is planning to sell approximately 45% of its German residential portfolio, which it acquired from Peach Property less than a year ago.
How will the proceeds from the sale be used?
The proceeds from the sale will be used to repay €190 million of the financing provided by Baupost Group and Diameter Capital Partners to acquire the portfolio.
Why is GTC selling part of its portfolio?
GTC is selling part of its portfolio to deleverage its business and refocus on core markets amid pressures on real estate valuations and higher financing costs.
What other financial actions is GTC taking?
GTC has secured a refinancing for its high-yield bond due in 2026, issued €455 million of new securities, and is working on extending €300 million of short-term bank debt.
What is the expected timeline for the first sale?
The first sale is not expected to occur until next year, according to GTC's CEO Malgorzata Czaplicka.
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