GTC International parent company Kardan Real Estate will record a $39 million net profit from the sale of the Galleria Mokotow mall to Rodamco Europe NV.
GTC International yesterday completed the sale of half of Warsaw’s Galleria Mokotow mall to Rodamco Europe NV of the Netherlands for $83 million. Kardan (TASE:KRDN) controls GTC International through Kardan Real Estate (TASE:KRDR), which will record a NIS 39 million net profit on the sale.
GTC will still own half the mall, which was built in the late 1990s and opened in September 2000.
This is one of the largest overseas deals by an Israeli real estate company to date, and underscores the potential of overseas real estate investments, particularly in Eastern Europe. Two weeks ago, “Globes” reported that BSR Europe sold two properties in Slovakia, earning a profit of NIS 75-87 million.
The Galleria Mokotow mall has 60,000 sq.m. of income producing space and a 2,400-space underground parking garage. GTC is owned by Kardan, Kardan Real Estate, Azorim Investment, Development and Construction (TASE:AZRM), Citibank, and Deutsche Bank.
Published by Globes [online] - www.globes.co.il - on July 1, 2003