GTC slows down

GTC Poland, one of the most active developers at Polish market seems to slow its activities. In late February, the company released a statement saying that property developments in Hungary and Poland were halting and new projects or buying land wouldn’t be taking on. GTC won’t start projects that don’t show signs of success.

Mikołowska Office Center would be offering 26 000 sq. m office space. In opinion of GTC it is too risky to deliver almost 50 000 sq. m rentable office space to Katowice as the Francuska Office Center is already in progress with its 21 700 sq. m. Current market situation could be unpredictable and there can be problems with tenants and rentings. In this case, project at Mikołowska is on hold which was confirmed to by Katarzyna Pankiewicz, GTC’s office space department director.

Moreover, in face of the recession and troubles with residential projects, some of them can be convert into office projects. Mariusz Kozłowski, GTC’s board member and director for investor relations, says in his talk with CiJ Journal that offices at Apartamenty Moderna in Katowice (nearby Mikołowska Office Center) may be extended, though Kozłowski says it’s only an option for now.

He says GTC is flexible about beginning new projects, saying that as soon as there’s a satisfying level of pre-lets, they will get back on the development track.