Loss for the year of €85.9 million (31 December 2011: €13.9 million profit), which stems from a non-cash €79 million impairment of trading properties, of which 59% related to impairments of assets in Hungary and Romania and an overall net finance cost of €16.5 million compared to a net finance income of €74 million of 2011. The prior year finance income figure of €74 million was based on the substantial decrease in fair value debentures and related foreign exchange gains measured through the profit or loss account. In the course of 2012 write-downs were recognized in respect of projects in Romania (EUR 34.1 million). Despite GDP growth of +1.8% in CEE during 2012, it remained a challenging year for some of the economies in which we operate, particularly Hungary and Romania (GDP decreased by 1% in Hungary and in Romania recorded anaemic growth of 0.9%), and this has been reflected by the write downs to our landbank assets recorded during the year. Real estate investment volumes for CEE in 2012 also decreased significantly, recording a 35% drop year on year. These trends confirm that we were correct in our strategy to hold and actively asset manage our completed developments, enjoying the rental income they produce, until sales prices which appropriately reflect their current and existing potential are achieved ”, says the report. Plaza holds a 75% interest in a company in partnership with the Government of Romania to develop Casa Radio (Dambovita), the largest development plot in central Bucharest. It will comprise approximately 600,000 sqm of GBA, including a 158,000 sqm GBA shopping mall and leisure centre (one of the largest in Europe), offices, hotel, an apartment hotel, casino, hypermarket and a convention and conference hall. The Company has obtained the approval of the Urban Technical Commission of Bucharest and completion of the first phase is scheduled for 2014. The value of the Casa radio project in Romania includes two gas turbines with a total book value of EUR 9.1 million. A write-down of EUR 1.9 million was recognized in respect of the turbines in the course of 2012. The company owns lands in Iaşi, Miercurea Ciuc, Timişoara, Hunedoara, Târgu-Mureş şi Constanţa, Slatina, where shopping centres were planned to be built according to the company’s prior announcements. The starting of works was delayed due to the financial crises, but the report mentions the Romanian projects are planned for 2014-205, with a completion of works scheduled for 2015-2016. (source: zf.ro)