GTC is to develop two A-class office buildings on Piata Presei Libere in Bucharest, close to the Sofitel hotel and the Romanian exhibition center. The property is located on the main road connecting the airport with the city center. The project is comprised of 43,000 m² of gross area across the two buildings and the underground car park that will accommodate around 670 cars.
GTC expects to obtain a building permit in the fourth quarter of 2006 and to start construction of the first building immediately thereafter. The project is to be developed in two phases with construction of both office buildings planned to be completed within 2 years. The estimated total development cost is €56 million (inclusive of the site acquisition cost of €7.5 mil).
GTC will have a 50.07 % stake in the project and will lead and manage it on behalf of the other shareholders.
The new office investment will more than double the size of GTC's portfolio of A-class office buildings in Bucharest, Romania's capital city. In 1Q 2006 GTC completed America House - an A-class office building comprising of 27,000 m², that has been fully let to renowned international tenants.
After this acquisition GTC's portfolio in Romania will include 450,000 m² of commercial and residential space.