Real estate developer Globe Trade Center (GTC) Romania states itis more attracted to the office market than to the housing marketor retail, as office space rents have not plunged and demand isstill high. GTC holds 150m euros in cash and can support a newoffice project in northern Bucharest without resorting to bankingfinancing.
"We're one of the few real estate developers that are currentlyable to sustain the development of such a project with its ownfunds, without banking financing," said Shimon Galon, GTC's chiefexecutive officer for Romania.
GTC announced it planned to start the construction of a newoffice project in northern Bucharest, close to City Gate complex italso developed. Investments amount to 60m euros and the lettablearea stands at 28,000 square metres.
According to Hagai Harel, a managing board member, besides the150m euros in cash the company also holds assets worth 1.2bn eurosthat could be invested in the construction of new real estateprojects.
GTC built two major business centres in Bucharest, Europe Houseand America House, both located in Piata Victoriei.
On the Bucharest housing market, GTC is present with two housingcomplexes, namely Rose Garden and Eden Garden. The second complex,comprising almost 2,000 homes, will be redesigned so that apartmentprices should be in line with "First Home" prices and the companyshould also benefit from a VAT reduction for project construction."(...) On the housing segment, GTC does not have projects thatcould be included in this programme and we want to becomecompetitive," explained Galon. According to its own estimates, GTCannually makes over 12m euros from office space rental and over7.5m euros per year from retail.
GTC late last week launched the third Galleria mall, in PiatraNeamt, with investments revolving around 20m euros. The companyopened another two Galleria malls, in Buzau and Suceava, whichentailed investments worth over 40m euros.
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