GTC plans to invest over EUR 100m into Ukraine by building an office complex. The deal may be signed this year, according to GTC’s chairman Eli Alroy. Eli Alroy also stated that the company has not made any decision on dividend payment from 2006 net income.
Our view: GTC has already stated in the past that it plans to focus on expansion of its activities into new countries including Ukraine and Slovakia while to continue in its expansion in Bulgaria and Romania. We continue to view the plan positively given higher yields in those markets compared to the traditional C3 countries accompanied by prevailing lack of quality real estate assets driving rents higher. Note that GTC has already announced a deal in Moldova. GTC has cash to finance its expansion from equity issue, the sale of Galeria Kazimierz and the Mokotow Business Park.