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GTC Poland to lease 6.75 acres in Warsaw for NIS 32.8m

The company plans to build 40,000 sq.m. of office space on the site.

Kardan Real Estate Enterprise and Development (TASE:KRDR), a subsidiary of Kardan NV (TASE:KRNV; AEX:KARD), controlled by chairman Joseph Grunfeld and Avner Schnur, announced today that Global Trade Centre SA (WSE:GTC) (GTC Poland) has signed an agreement with another party to buy the leasing rights to a 6.75-acre lot in Warsaw occupied by 3,000 sq.m. of buildings for NIS 32.8 million. Kardan owns 30% of GTC Poland. The lot is close to the Mokotow Business Park and the Galeria Mokotow, one Warsaw's shopping and entertainment center.

The buildings are currently leased to third parties. GTC Poland plans to obtain permits to build 40,000 sq.m. of office space on the site. GTC International owns 51% of GTC Poland. GTC International is owned by Kardan Real Estate, and by IDB Holding Corp. (TASE:IDBH) through Azorim Investment, Development and Construction (TASE:AZRM). GTC Poland held an IPO on the Warsaw Stock Exchange in May, at a company value of $431 million. Its market cap is now $601 million.

GTC Poland published its financial report for the second quarter of 2004 last week. The company posted $14.3 million in revenue, 14% less than the $16.6 million posted in the corresponding quarter of last year. The company posted a net profit of $4.1 million ($0.23 per share) in the second quarter, compared with $3 million ($0.21 per share) in the corresponding quarter of last year.

Published by Globes [online] - www.globes.co.il - on August 8, 2004