Kardan decided to sell the major share package within the second biggest developer in Poland in order to cover its own debt, informs Bloomberg.

Some investors are in due-diligence process over GTC, which might lead to the sale of the package owned by Kardan by the end of this year. The market value of the share is EUR 206 million.

Kardan is raising money to improve its liquidity and pay the loans. In 2009, Kardan sold shares with the value of 160.8 million zlotys on the Stock, and in 2011 sold another 15% share of GTC for 755 million zlotys, shows the data presented by Bloomberg.

„The chances for the transaction to be completed are big, as GTC announced there are companies in due-diligence process", has declared Andrzej Knigawka, analyst within ING group in Warsaw.

The involvement of a strategic investor in GTC could support the company in its development process, but also in selling some assets, said Malgorzata Kloka, analyst within UniCredit SpA in Warsaw, cited by Bloomberg.

„The investors have greeted Kardan’s announcement to sell the shares because its liquidity problems and not because GTC is a poor investment", said the analyst of Banco Espirito Santo SA in Warsaw, Cezary Bernatek.

GTC, whose activity focuses on the development of office buildings, commercial centres and residential properties, has registered losses in the last nine quarters, on the background of the decrease of the properties’ value determined by the economy slowdown in Eastern Europe.

In Romania, GTC is facing problems. Last autumn GTC announced the sale of three commercial centres in Suceava, Piatra Neamţ and Buzău, a transaction assuming a loss of EUR 19 million. The transaction was not completed, but the developer succeeded in selling Galleria in Suceava to a bearings company.


GTC Romania developed two residential projects in Bucharest: Rose Garden and Felicity, the office projects Europe House, America House and City Gate (all in Bucharest), as well as four commercial centres branded Galleria (in Arad, Buău, Piatra – Neamţ and Suceava). GTC will also develop in partnership with the businessman George Copos the office building Ana Tower, in the proximity of Presei Square in Bucharest. (source: economica.net)