Poland’s GTC, significant losses in the region. Property developer negotiates Felicity project sale in Romania

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Listed commercial real estate developer GTC recorded around EUR 132 million decline in the fair value of its real estate portfolio in the 2014 financial report as compared to end-Q3 values, GTC said in a market filing.

“The decline in fair value is mostly related to the company’s assets located in secondary cities in Romania, Croatia and Bulgaria, as well as the landbank in Budapest,” GTC said, according to biznes.pap.pl.

According to GTC data, the company lost EUR 32 million in three months in Romania. GTC has three shopping centers under Galleria brand in Arad, Buzau and Piatra Neamt. Three malls, besides the one in Arad, were missed transactions in early 2013. Currently, GTC is negotiating with creditor banks restructuring loans and repayment schedule.

Felicity project in Soseaua Odaii area, Bucharest, completed by GTC, could be taken over by UniCredit Tiriac Bank, which funded it, econmica.net informs.

In Poland, GTC is the second largest real estate developer based on market value, according to Bloomberg. On January 16, when the company released the report, GTC shares crashed by 17 percent, the lowest level since 2004.

GTC, which had EUR 78 million of cash at the end of 2014, will stick to its plan to sell new shares in the first half of this year to fund acquisitions, Chief Executive Officer Thomas Kurzmann, said recently. In Hungary, GTC will focus on Budapest, in Romania on Bucharest and in Poland on Warsaw and other cities, he said.

GTC was one of the developers interested in purchasing Promenada shopping center in Bucharest, bought by NEPI for EUR 148 million.


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