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Lone Star increases stake in Polish developer

The Dallas-based private equity real estate firm has upped its stake Polish real estate developer GTC to 55.2 percent.

Lone Star, the Dallas-based private equity real estate firm, has agreed to increase its stake in Central and Eastern European property company Globe Trade Center (GTC), the firm announced on Monday.

Lone Star, which was already the largest shareholder in the property developer with a 32.5 percent stake, upped its stake to 55.2 percent and is aiming to raise its holding to 66 percent eventually.

But, having offered PLN6.1 (€1.48; $1.63) per GTC share until May 22, it is now offering a reduced price of PLN5.5 until the tender closes on June 3, below GTC's current market price of PLN6.05.

“We have surpassed the minimum level that we wanted to achieve,” Alexander Hesse, co-head of real estate investments at Lone Star Europe and head of the GTC's supervisory board, said in a statement.

Lone Star decided to go ahead with the tender despite failing to secure enough backing among GTC shareholders for a rights issue for the developer to issue up to 140 million new shares.

Lone Star originally acquired a 22.75 percent stake in GTC on behalf of its $7 billion Lone Star Real Estate Fund III back in November 2013 for €160 million.