GTC sold three small shopping malls in Buzau, Piatra Neamt and Suceava. The name of the buyer is being kept confidential until the deal closes in the first quarter of 2013.
“Each of the three properties comprises between 10,000 and 14,000 sqm of net rentable area, while all other GTC shopping centers exceed 30,000 sqm and are more focused on international tenants,” said Alain Ickovics, Chairman of the Supervisory Board of Globe Trade Centre S.A. “GTC decided to focus on its large scale shopping centers due to the change in the market conditions and the relatively high operational costs for smaller assets and their different tenant mix, which results in a lack of synergies with the larger retail assets in the group.”
According to a company statement, GTC’s Romanian properties have been driving its results down, generating some substantial losses over the years. Through the sale, GTC hopes to improve its cash flow and balance sheet.
