Margin in charge

WSE-listed developer GTC announced its financial results for the first quarter of 2008. The company reported a net profit of Euro 34.8 (zł.117.6 ) million, which marks a 211-percent rise compared to Q1 2007.

The company achieved a record 95-percent margin on buildings completed in the first three months of 2008. According to the company's statement, the record margin is the result of the prestigious tenants, prime location and efficient design of its developments.

"A large number of commercial projects currently underway are enjoying a constantly high interest on the part of tenants long before their completion," Mariusz Kozłowski, a board member at GTC told TVN CNBC.

"We are proud to have completed the largest lease transaction in the history of our company. In Kraków, we have leased almost 12,000 sqm of modern office space to State Street, a company entering the Polish market," he added.

Office and large retail space developments are GTC's main focus in Poland, but the company also invests in Poland's residential market. In other European markets, especially Romania, the residential sector is the main focus of GTC's activities.

The company has several large office projects underway. A second building in Platinum Business Park and the Zephirus building in Okęcie Business Park are expected to deliver approximately 9,000 sqm each in the third quarter of this year. The year 2009 is expected to see more than 70,000 sqm of office space in Łódź, Katowice and Wrocław.

"The profit climax from the new investments will come in 2009 and 2010, when most of [the developments] are completed," added Mariusz Kozłowski.

GTC operates in several countries of the CEE and SEE regions, and boasts a portfolio of 600,000 sqm of completed space. The company currently has approximately two million sqm of commercial and residential space under various stages of development. GTC is listed on WSE's WIG20 blue-chip index.