Poland’s GTC to sell 3 shopping centres in Romania

The buyer is an international private investor, the company said in a statement sent to SeeNews on Friday, without disclosing its name of the price of the deal. A sale agreement is expected by the first quarter of 2013 after due diligence and customary approvals,

The company considers smaller assets generate higher costs in the current market conditions because of their different tenant mix and the lack of synergies with its larger shopping centres. The outlets, located in Buzau, Piatra Neamt and Suceava, have lettable area from 10,000 to 14,000 square metres while the rest of GTC malls span on more than 30,000 square metres.

The transaction will contribute to both cash flow and earnings by 3 million euro [$3.9 million] to 4 million euro on an annual basis since the properties have been loss making. As a result of the transaction GTC will recognize a revaluation loss of 19 million euro in the third quarter of 2012, but it has opted for "immediate operational improvement over longer term value preservation".

Apart from Romania, GTC also operates in Poland, Hungary, Croatia, Serbia, Slovakia, the Czech Republic, Russia and Ukraine.

($ = 0.7788 euro)