Press Release: Gdansk Young City Becomes Reality

Baltic Property Trust and the City of Gdansk have announced the beginning of the Young City project, the biggest waterfront revitalization project in Poland. The City of Gdansk, BPTO Infra and BPTO Gdansk Development have signed an agreement on cooperation covering Young City construction. Thanks to the agreement, the biggest waterfront revitalization project in Poland will be created. What is more, the citizens of Gdansk will gain a perfect venue for living, working, shopping, services and entertainment.

At a time when there is great difficulties in the global financial market, Young City, stands out, like an oasis, as a solid place to invest in – told Torben Schøn, Chairman of the Board of Directors, Baltic Property Trust Optima S.A., SICAR.

Danish people lived and worked in Gdańsk for centuries, now the history makes a circle, now Danish business comes back to create the Gdańsk of 21^st century – told Paweł Adamowicz, the Mayor of the City of Gdańsk.

As a start to creating Young City, the City and BPTO Infra, in cooperation, will develop the first stage of Nowa Wałowa Street, the main thoroughfare in Young City, and the main traffic connection to the rest of the city. Additionally, Nowa Wałowa will improve access to the stadium where Gdansk will host the UEFA 2012 football championship matches.

We are “Making Things Happen” in Young City – Gdansk by creating an innovative solution to develop the necessary road and infrastructure.  BPTO Infra will be responsible for the construction of one part of Nowa Wałowa, the “Small Loop”, before December 2010.  The City of Gdansk will be responsible for the construction of another part of Nowa Wałowa over the railroad tracks connecting to Jana z Kolna, the “Extension”, before November 2011.

The start of Nowa Wałowa Street and the cooperation of the City of Gdansk will permit developers of this new usable space to quickly obtain building permits. The completion of the Small Loop and the Extension will allow developers to obtain final occupancy permits for the new development.

BPTO Gdansk Development is guaranteeing that over about 12 years at least 750,000 sq. m. of new usable space will be developed in Young City.  This new usable space will generate significant new real estate tax revenues for the City of Gdansk.

Amongst the new usable space to be developed will be a multi-purpose center with a large shopping center, multi-plex and IMAX cinemas, two residential towers and an office building to open in the fall of 2011 or early 2012.  Also, an European Solidarity Center will be built across from the historic BHP Hall.

Young City is a seven minute walk to the central train station and a fifteen minute walk to the Old Town of Gdansk.  The uniqueness of this centrally located, historic, waterfront site, along with the diverse mixture of new usable space to be developed and welcoming public spaces will attract sufficient numbers of workers, visitors, shoppers and residents to Young City that pension funds, investors and developers who invest in Young City will earn a good return on their investment and contribute to the successful development of Young City – Gdansk.

About BPTO Gdansk Development A/S

BPTO Gdansk Development A/S was established in Copenhagen, Denmark, for the purpose of investing and developing in the former shipyard of Gdansk, Poland.  It is a sub-holding of the investment fund established in Luxemburg - Baltic Property Trust Optima S.A., SICAR.  The fund’s principal shareholders are pension plans and other institutional investors, and its purpose is to invest in the three Baltic States and Poland.

In 2006 BPTO Gdansk Development acquired 4.4 hectares of land in Young City as part of a three phase acquisition.  Later that year it sold the land for the development of a multi-purpose retail, residential and office center, to be completed in 2011 or 2012.  In 2007 it acquired in the second phase 23 hectares of land in Young City.

Its goal is to ensure at least 750,000 sq. m. of new usable space is developed in Young City that compliments each other to create a dynamic new destination for living, working, shopping and services.

BPTO Infra sp. z o.o., is a subsidiary of BPTO Gdansk Development A/S and responsible for, the development of the first stage of Nowa Wałowa Street in Young City, in cooperation with the City of Gdansk.

BPTO Gdansk Development has four other subsidiary companies in Gdansk.

For more information, please contact:

Terry A. Selzer

Gdansk Young City Project Director

Phone: +48 58 767 79 99