GTC sells three small sized, loss making shopping centers in Romania to focus on larger projects
The three shopping centers, in Buzau, Piatra Neamt and Suceava, were reporting losses and were opened in 2008 and 2009.
The value of the deal was not announced, but the Romanian media places it at some EUR 7 million.
“The transaction will improve both the cash flow and profit and loss statement by EUR 3 to EUR 4 million on an annual basis, as the properties were loss making. As a result of this transaction, GTC will recognize a revaluation loss of EUR 19 million in the third quarter of 2012. In this specific case, GTC decided to choose immediate operational improvement over longer term value preservation due to current market conditions,” the developer also explained upon announcing the sale.
GTC owns another Galleria mall in Romania, at Arad. Its other projects in Romania include the City Gate offices in Bucharest, the future Ana Tower offices also in Bucharest, as well as Rose Garden and Felicity residential projects.
Corina Chirileasa, corina@romania-insider.com
(photo source: GTC)