GTC makes €100 mln in profit from real estate projects

According to a report by Erste Bank, GTC will make €321 mln on a €210 mln investment. The company expects to gain €37.8 mln from a third real estate project, called Green Dream Residence.

Work on the residential project is scheduled to begin this spring, once legal issues on access are resolved.

GTC is expecting prices for medium and lower-class segments to stabilize, even dropping slightly, while luxury home prices will remain at the same level.
“We have applied a 5 percent discount on the sale price of residential projects in Poland and Romania for the 2009-2010 period, due to forecasts which show a slowing of the market in this period,” the report shows. According to Erste Bank, the real estate market yield in Central and Eastern Europe will increase 0.5 percent, due to a rise in risk premiums in the first six months of the year.

GTC, owned by Israeli group Kardan, came onto the Romanian market in 1999. The company has projects in Poland, Hungary, Czech Republic, Romania, Serbia and Croatia, covering all market segments, including office buildings, shopping malls, and housing.