GTC in Talks to Sell Part of German Residential Portfolio
Polish real estate developer Globe Trade Centre SA is in talks to sell approximately 45% of a German residential portfolio it acquired less than a year ago. The proceeds will be used to repay financing and help deleverage the company.
Real EstateGtcGerman PortfolioDeleverageRefinancingReal Estate MumbaiOct 10, 2025
The proceeds from the sale will be used to repay €190 million ($220 million) of the financing provided by Baupost Group and Diameter Capital Partners. Czaplicka mentioned that while the company has identified the properties it intends to dispose of, the first sale is not expected until next year.
This decision marks a strategic shift for GTC, which traditionally focuses on commercial real estate in central and Eastern Europe. The company plans to refocus on its core markets, although it will remain flexible depending on market developments. Czaplicka emphasized that the move is part of a broader strategy to deleverage the business amid pressure on real estate valuations and higher financing costs.
In addition to the planned disposal, 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, after announcing plans to buy back existing bonds. Schroder Investment Management is set to purchase €275 million to €300 million of the new issue, according to a previous statement.
The developer also plans to extend €300 million of short-term bank debt by the first quarter of next year. CFO Jacek Bagiński noted that discussions are already well advanced, and the loans will likely be extended for a period of five to seven years.
GTC's strategic moves reflect the company's efforts to navigate the challenges in the real estate market, including the need to manage debt and maintain financial stability. The company's proactive approach to refinancing and asset disposal demonstrates its commitment to long-term sustainability and growth.
Frequently Asked Questions
Why is GTC selling part of its German residential portfolio?
GTC is selling part of its German residential portfolio to repay financing and help deleverage the company, which is facing pressure on real estate valuations and higher financing costs.
How much of the portfolio is GTC planning to sell?
GTC plans to sell around 45% of the portfolio acquired from Peach Property.
What will GTC use the proceeds from the sale for?
The proceeds from the sale will be used to repay €190 million of the financing provided by Baupost Group and Diameter Capital Partners.
What other financial moves is GTC making?
In addition to the planned disposal, GTC has secured refinancing for its high-yield bond due in 2026 and issued €455 million of securities due in 2030. The company also plans to extend €300 million of short-term bank debt by the first quarter of next year.
What is GTC's long-term strategy?
GTC's long-term strategy involves focusing on its core markets in central and Eastern Europe and maintaining financial stability through proactive refinancing and asset disposal.
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