GTC holds projects

Developer Globe Trade Centre has announced that all residential projects on which construction has begun will not be put on hold, however, no new projects will be started. Moreover, the firm will redesign a number of projects as commercial schemes, including investments planned in Poznań and Łódź, following a slowdown in the residential real estate market.

The company has reduced the total value of its investments in 2008 from €1 (zł.3.73) billion to €600 (zł.2,238) million by abandoning the purchase of new land and postponing some of its projects.

"We are going to be very cautious with spending our funds. We have sharpened our criteria concerning the selection of new properties. We are not launching new projects without ensuring financial security," said Eli Alroy, president of GTC's supervisory board. He added that the company is now renegotiating agreements with contractors that were signed a year or two ago, when the costs of construction materials and work were higher.