GTC Buys 30% In Three Malls For EUR1

03.12.2013 By Cristi Moga

Israeli-held real estate developer GTC bought a minority shareholder out of three Galleria malls for EUR1.

GTC had 70% in Galleria Buzau, Piatra Neamt and Suceava and its partner in the three was another Israeli company, Aura Investments, which had 30% and decided to sell.

“On December 24, 2012, GTC signed the final agreement with the minority partner in its subsidiary NCC,” the group said in its 2012 financial report. The company controls three shopping centres located in Buzau, Piatra Neamt and Suceava in Romania.

“According to the agreement, GTC Romania purchased minority stake in NCC in consideration of EUR1,” reads the report.

The malls with a 37,000 square meter floor space are valued at EUR7 million (EUR189 per lettable square meter), while the debt to the European Bank for Reconstruction and Development and Raiffeisen, which funded the construction, amounts to EUR27 million.

GTC’s most important asset in Romania is the City Gate office complex in Bucharest, valued at almost EUR170 million. The two towers in the complex with a floor area of 47,700 square meters are 95% rented.

GTC made EUR23.6 million in revenue from rent in Romania and Bulgaria last year, up 22% while total revenue amounted to EUR29.7 million, as it also owns two residential compounds with homes for sale in Bucharest.

(English version by Loredana Fratila-Cristescu)