GTC gets red light for Galeria Wilanów project
12:55
Mid-cap real estate developer GTC has been denied permission to build the Galeria Wilanów shopping mall in Warsaw's Wilanów district, the company stated in a market filing.
The refusal was “primarily due to a discrepancy in the interpretation of the law by the Company and by the Mayor of the Capital City of Warsaw in respect of the provisions of the zoning plan,” according to the filing.
The Company plans to file an appeal against the decision as soon as possible. The decision does not impact the book value of the relevant property as recorded in the Company's financial statements.
“Although there has been media speculation of a possible refusal for a while now, the market was still hoping that GTC would get the permit. Hence the negative reaction. But I wouldn't give up on this investment entirely. I think that after some disturbance, GTC may eventually launch the project,” said Cezary Bernatek, an analyst at Haitong Bank.
