Kardan NV (TASE: KRNV;AEX:KARD) subsidiary Globe Trade Centre SA (WSE:GTC) (GTC Poland) has sold its 50% stake in the Galeria Mokotow in Warsaw to its partner in the mall, an affiliate of Unibail Rodamco SE (Euronext Paris: UL), at a value of €475 million. GTC Poland will receive €110 million in cash on the sale, and Kardan expects a gain of €1 million..
Kardan said that the sale will strengthen GTC Poland's financial position and facilitate future developments. GTC Poland chairman Eli Alroy said, "As the real estate investment market continues to improve, we proceed with recycling of capital and plan new investments in the commercial sector in Poland."
The 62,000-square meter Galeria Mokotow mall was built in 2000. It generated €24.8 million revenue in 2010.
Kardan owns 27% of GTC Poland. Kardan's share price was flat at to €3.53 in morning trading in Amsterdam, giving a market cap of €394 million, and rose 2% to NIS 17.50 by midday on the TASE. GTC Poland's share price rose 3.9% by midday in Warsaw to 19.16 zloty.
Published by Globes [online], Israel business news - www.globes-online.com - on May 26, 2011
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