GTC announced acquisition of 61,000 sqm site in 14th District of Budapest, Hungary. GTC plans to develop some 58,500 sqm of residential space with scheduled delivery in 2009-2010. The acquisition price is € 17.5m, implying € 287/sqm and the cost of construction excluding price of land is expected to came at € 57.5m, implying € 982/sqm.
This acquisition supplement another project on 6.0ha plot announced in Budapest recently. Based on similar figures, we estimate GTC to achieve at least 20% margin on this development. In this case the project adds approx. PLN 0.2/per share to our fair value estimate.