After 46 months of intensive construction and conservation work, the revitalisation of the Norblin Factory, the flagship project in the Capital Park Group’s portfolio, has been completed despite the ongoing pandemic. In August 2021, the complex with a total area of over 65,000 sq.m. was granted a use permit. In December 2021, the commercialisation of its office space was completed. Meanwhile, 68% of space designated for entertainment, culture, food, retail and services has been leased. The tenants of the Norblin Factory include Allegro Group, the Global Business Services Centre of Japan Tobacco International, SEB Bank, BioBazar, KinoGram cinema, the largest food court in the capital city Food Town, Piano Bar. In the coming days and weeks, visitors will be allowed to the immersive gallery Art Box Experience, the Apple Museum Poland which will present the most comprehensive exhibition of the company’s products in the world, as well as new retail, service and food outlets and the OrangeTheory Fitness gym.

In 2021, the Capital Park Group continued its investment activities. It sold two properties: Eurocentrum Hotel and Residences, a residential and hotel project located at Jerozolimskie Ave. in the vicinity of the Eurocentrum Office Complex; and a complex of retail and service units at Belgradzka St. in Warsaw. The transactions generated total gross revenue of PLN 121.8 million and the prices paid in both cases exceeded the book value of the investments. The Royal Wilanów project, fully stabilised and 100% leased, is ready for sale.

“We are planning new unique projects with an urban edge, which we have been developing intensively in the past year. Polski Hak in Gdańsk is one of the most prestigious locations in the heart of the Tri-City, situated on a promontory in the picturesque surroundings of the mouth of the Motława River which flows into the Martwa Wisła. The project includes residential development with retail and service functions on the ground floors of the buildings. In turn, Nowy Wełnowiec, where we are a strategic partner, is a multifunctional and ecological district to be developed in the northern part of Katowice and in Siemianowice Śląskie. The post-industrial area of 43 ha will be recultivated, revitalised and returned to the city. Work is currently underway to finalise these transactions along with signing joint venture agreements with land owners and financial investors. There are also investments in the pipeline in Warsaw, Szczecin and Kołobrzeg, all with a predominantly residential function,” said Marcin Juszczyk, Member of the Management Board, CIO / CFO at Capital Park Group.

The Group’s financial position is stable. Operating revenue in 2021 amounted to PLN 65.4 million, an increase of 14% year on year. The company generated a consolidated net profit of PLN 245.6 million. Property revaluation of PLN 274 million (net of the exchange rate effect) had a positive impact on the valuation of the Group’s investment properties. This represents a 31% increase in the value of the investment portfolio to over PLN 2.6 billion. The Group’s net cash at the end of 2021 was PLN 172 million and its net debt was only 34%.

Capital Park presents for the first time its Sustainability Report which introduces a measurable summary of the Group’s ESG (Environmental, Social, Governance) activities to a broad range of stakeholders.

“Since the inception of the Group, environmental, social and governance factors have been important in our activity with an impact on the strategy pursued. In order to meet the expectations of our stakeholders, we have created a report summarising our sustainable development actions,” said Kinga Nowakowska, Member of the Management Board, Chief Operating Officer responsible for ESG in the Capital Park Group. “All our projects are developed with respect for the environment and contribute to the well-being of the facility’s users: tenants, business partners, clients, guests, and local residents. Our priority is to educate and build a community around our investments that cares about the environment and is not indifferent to the challenges of climate change. The overall approach to the investment process, as well as the awareness of tenants and financial institutions, has changed over the years. Today it would be unthinkable to have a commercial building without a green certificate but a few years ago, when we were building the Eurocentrum Office Complex, some people were surprised that it was already certified at the design stage. They thought it was not a necessary requirement. We had a strong conviction that this is the future, and we have become a leader of change,” said Kinga Nowakowska.

The report provides information on environmental, labour, social, legal, and ethical issues. In addition, the Group presents aspects relating to its engagement with local communities and the impact of its investments on cities, and summarises its financial results for 2021. The report has been prepared in accordance with the requirements of the Accounting Act, as well as the international reporting standards of the Sustainability Accounting Standards Board (SASB) and recommendations of the TCFD (Task Force on Climate-Related Financial Disclosures). The report was preceded by a sustainable development survey among Capital Park Groups stakeholders.