(47 PLN, -2,75%) announced the finalization of America House sale in Bucharest, Romania. Class A office building has been sold to fund managed by IXIS AEW Europe. The transaction was based on a valuation of EUR 120m and implied yield of 5.55%.
We see this news as neutral as the info about the deal leaked already in August. In our last report, we have taken into account indicated transaction value as well as effect on other properties. Although the prime yield indicate faster than expected contraction we believe that this was rather extraordinary transaction and majority of the deals will still be concluded around 6.0%. We remain to be positive on the value of GTC’s properties currently under development in the SEE region, which will bring substantial revaluation gains upon completion starting in 4Q2007 and spreading until 2009/2010.