Through the credit’s restructuration (total value of EUR 33.6 million) GTC was released from its guarantor status and became co-debtor. Now, Galleria Piatra Neamţ has to reimburse a credit of approx. EUR 5.7 million and Galleria Arad a loan of EUR 27.8 million, credits that GTC engaged to pay quarterly by the end of 2017.
GTC was strongly hit last month, after the leave of Cora from Galleria Arad. The value of the two malls has dropped in the last year from EUR 35.1 million to EUR 8.5 million, according to the company’s financial report.
Lone Star Funds has completely changed the strategy of GTC since its becoming of major shareholder. During last year, GTC Romania has sold at a loss the malls Galleria Suceava and Buzău, in its attempt to liquidate the assets with problems.
GTC also owns in Romania the office towers City Gate in Piaţa Presei (in partnership with Cyprus’ fund Bluehouse), whose value has dropped last year from eUR 157 million to EUR 148 million, a land of 10,000 sq. m in partnership with George Copos, intended to the development of an office tower and the residential complexes Rose Garden (almost fully sold) and FeliCity (in default).
GTC is the foreign developer with most projects completed in Romania. The company invested in the six projects in its portfolio a total of approx. EUR 377 million, plus the first two modern office buildings in Bucharest, Europe House and America House, for which it received EUR 100 million from the sale. (source: capital.ro)
