According to Mariusz Kozlowski,
GTC’s management board member, company plans to boost its office space for rent to 250,000 sqm by the end of 2007 and almost triple by the end of 2009.
Separately,
GTC started work on its EUR 120m Okecie Business Park project close to airport area, which includes seven office buildings. First building should be finished in 1Q2008.
Our view: We see the new regarding expansion of
GTC rentable area as trading neutral, as this is based on already announced projects in the pipeline. Mentioned figures are broadly in-line with our expectations, however in 2007 we expect
GTC to have only 230,000 sqm of rentable area, while 750,000 sqm seems reachable by the end of 2009, should there be no delays in delivering announced projects. Net rentable area in the office segment stood at some 170,000 sqm at the end of 2006, indicating some 47% y/y increase in 2007.
Okecie Business Park project has been in the pipeline for some time and expects to deliver 48,700 sqm of rentable space. Previously
GTC planned to erect only 6 buildings, while currently there are plans for 7. Although there is some delay of one quarter in delivering first building, we see this only as a marginal issue in our valuation, which should be more than offset should the projected rentable area increases with additional building.