Developer GTC affected by residential slowdown in Romania, Hungary

Slow residential sales in Romania and Hungary impacted the revenues of real estate developer GTC, which only made EUR 25 million from the sale of residential properties last year, according to its most recent financial report. GTC's residential properties in Romania are the Felicity and Rose Garden compounds. Furthermore, the value of the developer's properties was down to EUR 296 million last year, “due to continued adverse market conditions in Romania, Bulgaria, Croatia and Hungary,” writes GTCs' report. Romania, GTC's second largest market, with 19 percent of its properties, is one of the markets seen as subject to greater risk than the developed ones, together with Poland and Hungary. Romania and Bulgaria together brought GTC a total income of EUR 26.5 million in 2011, down on EUR 27.6 million in 2010. GTC has a total net area for lease of 117,000 sqm in Romania, which includes the City Gate office towers, some 28,000 sqm, where GTC has 59 percent of shares. Its retail portfolio comprises four Galeria shopping centers in regional cities in Romania, with an occupancy rate of around 88 percent. The full financial report here. editor@romania-insider.com (photo source: GTC)