The Galleria malls from the cities of Arad, Piatra Neamt and Buzau, owned by the real estate developer GTC, were valued at the end of June 2014 at 29 million euro, 17% less compared to March, while the office ensemble City Gate from Bucharest lost 1% of its value in the past three months.
City Gate ensemble, the most important asset of GTC in Romania, was estimated at the of H1 at 156 million euro, 1% less compared to the end of March.
The downwards reevaluation of the commercial centers was caused by the decrease of the current and future incomes from rents, according to the company’s financial report. The report also shows that the malls have lost 6 million euro of their value. This represents 20% (the largest percentage) of the loss of 67 million euro resulted from the downwards reevaluation of the entire portfolio of GTC in Central and Southeast Europe. The incomes from rents registered by GTC in Romania and Bulgaria have decreased slightly to 11.8 million euro, compared to 12.2 million euro in the same period of last year. On the other and, the overall incomes have increased from 16.3 million euro to 17.9 million euro, and based on the expenses cutting, the net profit of GTC on the two markets has increased from 6.4 million euro to 6.8 million euro.