Polish real estate developer Globe Trade Centre SA is in talks to sell part of a German residential portfolio it bought less than a year ago.
GTC plans to sell around 45% of the portfolio acquired from Peach Property, a Swiss-listed real estate company, chief executive officer Malgorzata Czaplicka said in an interview. 
“We already started marketing among certain potential buyers,” she said.
The CEO said the firm has identified the property it wants to dispose, although it doesn’t expect to see the first sale until next year. The proceeds will be used to repay €190 million ($220 million) of the financing provided by Baupost Group and Diameter Capital Partners to buy the portfolio.
At the time, the deal marked a departure from GTC’s usual area of commercial real estate, typically in central and Eastern Europe. The company plans to focus on core markets going forward, Czaplicka said, subject to market developments.
The developer has been looking for ways to deleverage its business in the face of broader pressure on real estate valuations and higher financing costs.
In addition to the disposal, the company secured a refinancing for its high-yield bond due 2026. GTC issued €455 million of securities due 2030 this month after announcing plans for a tender to buy back existing bonds.
Schroder Investment Management was due to buy €275 million to €300 million of the new issue, according to an earlier statement.
The developer also plans to extend €300 million of short-term bank debt by the first quarter of next year, Chief Financial Officer Jacek Bagiński said in the interview. Discussions are already “well advanced” and the loans will likely be extended for a period of five to seven years.
Source: Mint