We have information from recent days that one of the largest banks has just received the "green light" from the headquarters to finance retail parks with an area of up to 10,000 m2 GLA. Many other banks have announced that they will return to talks in the coming weeks - in an interview with SCF News / Retailnet.pl say Ewa Ściubidło, Vice President of the Board, Mallson Polska. The first part of the interview mainly concerns investments in the retail park segment. Tomorrow, the second part and questions about the rental conditions under which the market will operate after coronavirus.

Convenience projects - this is the format that works best under current conditions. Is this a permanent or temporary trend?

As it turned out, it is a proven concept for all times, which did well before the pandemic and in the current situation. As a Mallson company, we have already intensively developed this market sector and focused on retail parks. We have already completed about 30 such facilities and currently the company's portfolio in the design and rental process includes another several dozen. We also agree with the quite common view that a pandemic will only strengthen the upward trend for this type of project.

In the opinion of some experts, shopping centers in medium-sized cities will be in the most difficult situation. Do you agree with this opinion?

Our data, but also information from tenants prove ... the opposite! Large shopping malls in big cities have a bigger problem. We know that it is mainly the inhabitants of large cities that have "switched" to online. In addition, in smaller cities galleries are one of the main attractions and places creating events, cultural events, entertainment, etc. and it will not change. In large cities, there are many alternatives to spending time, but also to shopping or using the gastronomic offer - even on the streets -. In smaller cities, most of these functions have been taken over by galleries, which is why I am calm about their results. Let's also remember that rents in smaller cities are much more adapted to turnover - there are no cases of having stores solely for prestigious purposes - at all costs ...

In what formats can we expect new investments?

Certainly, some investors with new investments will observe the market situation or move them to the coming years.

From the conversations and observations we can see that the investments that are still being implemented are safe projects, such as shopping parks and undersized shopping malls.

In addition, in recent days several investors so far operating in other industries have come to us, interested in entering the retail park market.

Interestingly, we also see "movement" towards shopping parks on the side of tenants, who until now have focused only on shopping centers, which will certainly also strengthen the development of this sector.

What is the banks' assessment of prospects for the retail park market?

Banks have increased their security levels and requirements for investors, but it's still a very attractive piece of cake.

Certainly, the amount of own contribution and the level of pre-let will increase, and the banks' propensity for flexibility in these elements will decrease.

We have information from recent days that one of the largest banks has just received the "green light" from the headquarters to finance retail parks with an area of up to 10,000 m2 GLA. Many other banks have announced that they will return to talks in the coming weeks. Therefore, we hope that in August / September the situation in this respect will return to relative normality.

Today, the focus of the entire market is renegotiation of lease terms, but you are probably working on further projects in parallel ...

Over the past few weeks, we've been dealing almost exclusively with renegotiations of several hundred lease agreements and conditions for lock down and exiting. Finally, however, we return to normal work - we have started finalizing contracts for new investments.

Galeria Wiślanka in Żory is one of our flagship projects. Especially in these times, it will be a unique event on the market - it is one of the last new shopping and entertainment galleries in the whole country and at the same time, it is the only large shopping center opened this fall. So I think that the entire industry will be able to treat the opening of Wiślanka as a kind of "marker" of the situation. The building will be unique not only because of the location, catchment, great mix of tenants or modern architecture with elements of Silesian history. It is also significant that the investor is a 100% Polish family company, without previous experience in such a large investment. Therefore, let's all keep our fingers crossed for the success of the object. We are convinced that the good opening of Wiślanka encouraged tenants to new openings, investors for subsequent projects, and rumors of the end of such facilities will prove premature ...

Wiślanka is a large project, but there are many smaller ones in your portfolio.

This year we will also be able to test the opening of smaller formats - in autumn we are opening 4 new retail parks. Shopping Park "Rynek" in Zawiercie, Go! Park in Gorlice as well as 2 new MultiBox network facilities: in Greater Poland Trzcianka and in Warsaw's Wilanów. All on the day of rubbing off will be 100% rented.

Next year promises to be very active. In the spring of 2021, we are opening our hybrid project - the Sekunda Shopping Center in Jędrzejów. However, we managed to create an object with a great mix that will become a trade center for the entire region. In seconds, the most popular brands (including Lidl, Pepco, CCC, Sinsay, Rossmann, MediaExpert, Jysk, Smyk, Martes Sport, and Diverse) will be trading at around 40 premises, and we only have a few smaller spaces to rent.

We are also preparing another "Warsaw" project for the first half of next year. Construction of another Era Park shopping park in Rembertów will start soon. The facility will be built on an area with deep commercial traditions, near the well-known city market. The project will enrich the existing commercial offer of the inhabitants of this district of Warsaw with well-known and popular brands in the fashion, electronics and household appliances, drugstore, service, interior and other industries.

In the second half of 2021, we are opening, among others Shopping Parks: Retalia in Grodzisk Mazowiecki, Mozaika in Krotoszyn or MultiBox in Szamotuły.

We have several dozen projects in preparation in our portfolio and we are convinced that despite the epidemic, the commercial real estate industry will continue to grow.

 

Source: Retailnet.pl