The management board of Globe Trade Centre S.A. (“GTC”) hereby announces that on 8 July 2015, Centrum Światowida Sp. z o.o., with its registered seat in Warsaw (the “Client”), a subsidiary of GTC, concluded an agreement with Unibep S.A., with its registered seat in Bielsk Podlaski, concerning the construction work involved in the construction of Galeria Północna located at ul. Światowida in Warsaw, the district of Białołęka (the “Agreement”).

Under the Agreement, Unibep S.A. will act as the general contractor for the construction of a retail shopping and entertainment centre consisting of three above-ground storeys, with a commercial area of approximately 64,000 square meters. In addition, visitors will be able to use approximately 2,200 parking spaces on a two-storey underground parking lot.

 The Agreement states that the investment is to be completed between the third quarter of 2015 and the second quarter of 2017.

 The fee for the completion of the entire investment consists of:

-          a lump sum fee of EUR 73.3 million net, which is the equivalent of PLN 309.6 million, with the proviso that given the adopted algorithm for the calculation of the components of such fee, the final amount of the lump sum fee will be determined in a separate annex to be concluded within 14 days from the date of the conclusion of the Agreement;

-          an indicative amount estimated at EUR 11.9 million net, which is the equivalent of PLN 50.3 million, due for work which is not subject to the basic scope of the Agreement and may be commissioned to the general contractor at the Client’s discretion.

 The sum of the above-mentioned fees, assuming that all work associated with the indicative amount will have been performed, is EUR 85.3 million net, which is the equivalent of PLN 359.9 million.

 The Agreement provides that the Client may impose contractual penalties in situations such as a delay in the completion of the investment contemplated in the Agreement or the rescission of the Agreement. The maximum amount of the contractual penalties that may be imposed on account of all applicable events has been capped at 10% of the total fee. At the same time, however, the parties to the Agreement are entitled to seek compensation exceeding the stipulated amount of the contractual penalties.

 The other terms of the Agreement, including the provisions concerning the performance of, the rescission or the termination of the Agreement are standard market terms customarily applied in agreements of this type. 

 The Client’s claims resulting from the non-performance or improper performance of the Agreement by Unibep S.A. will be secured by a bank guarantee (a performance bond) securing the proper and timely completion of the investment issued for the amount of approx. EUR 7.3 million, which will be the equivalent of 10% of the lump sum fee.

 For reporting purposes, to identify material agreements GTC uses the criterion stated in §2 section 1.44 (a) of the Regulation (as defined below), i.e. the threshold of 10% of the value of GTC’s equity. The Agreement meets the materiality criterion defined above.

Detailed legal basis: § 5 section 1 subsection 3) and § 9 of the Regulation of the Minister of Finance of 19 February 2009 (as amended) on current and periodic information provided by issuers of securities, and the conditions for recognising as equivalent information required by the laws of a non-member state (the “Regulation”).