GTC, which operates in ten markets in Central and Eastern Europe, registered an asset devaluation by over EUR500 million compared with 2009, according to the company’s 2012 financial report.
In 2012 alone, GTC’s assets in CEE were revised down EUR131 million, with 73% resulting from the devaluation of the properties in Romania and Bulgaria. Romania alone accounted for half of GTC asset depreciation in 2012, namely EUR65.5 million.
In 2012, the devaluation mainly resulted from shopping malls in Romania, Bulgaria and Croatia, the report also read.
Romanian property losses come from reevaluating the shopping center Galeria Arad, which was down EUR21 million in value, to EUR31 million. The value of the other retail projects, the malls Galeria Piatra Neamt, Suceava and Buzau, has decreased by EUR28 million, to EUR7 million.
GTC also said that due to market conditions, the malls in Romania could neither attract new tenants nor operate rents increases. GTC was on the verge to sell the malls in Piatra Neamt, Suceava and Buzau, but the deal was canceled.
Thus, GTC’s income generating property portfolio in Romania was evaluated at EUR206 million in 2012, mostly made up of office complex City Gate in Bucharest.
GTC also owns two real estate compounds in Bucharest, Rose Garden and Felicity.
In 2012, GTC obtained total revenues of EUR23.6 million in Bulgaria and Romania, from EUR19.2 million in 2011.
The company’s total revenues totaled EUR147 million in 2012, down from EUR153 million a year before.
GTC operates in Poland, Romania, Hungary, Croatia, Serbia, Bulgaria, Slovakia, Czech Republic, Russia and Ukraine with over EUR2 billion assets end-2012.
The group plans to develop other real estate and retail projects in Bucharest, including an office building on 32,000 square meters.