Kardan's GTC sells Poland's largest office complex for $287m.

Global Trade Centre SA (WSE:GTC) (GTC Poland) , a subsidiary of Kardan NV (TASE: KRNV;AEX:KARD) has signed a memorandum for the sale of the Mokotow Business Park, Poland's largest office complex, to the US Heitman real estate fund for $287.5 million.

Upon completion of the deal, GTC will record a capital gain of $52 million. Other companies of the Kardan Group will also record profits in the wake of the deal; Kardan N.V., which holds 62.7% of GTC's shares, will record a capital gain of $32 million. Kardan Israel Ltd. (TASE: KRIS), which indirectly holds 14.3% of GTC, will make $7 million.

The deal is due to be completed in March 2007, and is subject to completion of due diligence and to obtaining all necessary approvals and funding needed by the Heitman Fund for the purchase. The Mokotow Business Park is the largest office complex in Poland, comprising nine buildings, with net office space of 109,000 sq. meters. The site was purchased in 1994 and development began in 1995.

Published by Globes [online], Israel business news - www.globes.co.il - on August 13, 2006