ARTICLES LABELLED WITH TAG retail

Large leases and the rebranding of City Center Sofia marked the Bulgarian retail property market in the third quarter. The demand for prime space remained strong fuelled by the increasing consumption in the main cities, while the supply didn’t change. Fashion and shoes, as well as health & beauty were the most rapidly growing categories in terms of new stores. The FMCG sector was driven mainly by the appetite of the fast growing retailers to occupy the niche vacated with the exit of Carrefour and Penny Market, as well as the reorganisation of Piccadilly. Forton has published its Bulgaria retail market snapshot for Q3 2016.

On 4 November 2016, NEPI, through its subsidiary NE Property Cooperatief UA, concluded an agreement to acquire all the issued shares in, and shareholders’ claims against, Granit Polus Laniste d.o.o. from Lobularia Ventures Limited and repay Laniste’s entire outstanding debt. Laniste wholly owns a shopping mall of 62,100 sqm of GLA situated in Zagreb, Croatia, that opened in November 2010, named Arena Centar and adjacent additional land plots of approximately 4.4 ha. The aggregate purchase price for the transaction is €237.5 million and was settled from NEPI’s existing cash resources.

Immofinanz will soon start construction on a further shopping centre under its VIVO! brand in the Polish city of Krosno. The new shopping centre will have approx. 21,000 sqm of rentable space for more than 60 shops. Pre-rentals are successfully underway, with the future tenants including H&M, Media Markt and Helios Cinema. The investment costs will total approx. €34 million, and the opening is planned for the fourth quarter of 2017. The VIVO! Krosno will be the third VIVO! shopping centre in Poland. 

Galeria Metropolia in Gdańsk-Wrzeszcz was officially opened on 22 October 2016. Przedsiębiorstwo Budowlane Górski is the investor of the shoping centre, whilst Cushman & Wakefield is responsible for its commercialization.

Only two shopping centres will be completed in 2016 in the Czech Republic due to the slow-down of construction activity in response to the perceived market saturation. Colliers International has released its Q3 retail market report for the Czech Republic, which also states that there are signs of new entrant demand which do not match suitable space availability. 

Romania has significantly strengthened its position as a favourable investment destination within Central & Eastern Europe and unlike other countries in the region, the Romanian property market is not entirely dominated by its capital city. Although investors and developers are most active in Bucharest, secondary and even tertiary cities have a lot of potential as well, and several companies have decided to explore what these regional hubs have to offer. 

CA Immo has concluded an agreement with WOOD & Company to sell the Šestka Shopping Center in Prague, continuing its strategic withdrawal from segments that do not belong to the core business. The centre covers more than 27,300 sqm of retail space and had been part of the asset portfolio of CA Immo since 2011. The buyer is a fund of WOOD & Company, the leading investment bank in Emerging Europe. The transaction, which is subject to the standard conditions precedent, is expected to be closed within the next weeks. It was agreed not to disclose the purchase price. Law firm Clifford Chance Prague advised the seller on the disposal.

After a calm Q3, the Polish retail market is set to pick up momentum. In Q4 developers may deliver up to 276,000 sqm of modern shopping centre space. JLL has published its Q3 2016 report on Poland's retail market.

The commercialization of Gdańsk’s Galeria Metropolia, which is scheduled to open on 22-23 October, is nearing completion. Fourteen new tenants include fashion stores, cafés and services. Cushman & Wakefield  acted as the agent on the lease agreements.

HB Reavis’ Central Europe Real Estate Fund (CEREIF) has sold its retail asset, Aupark Piestany in Slovakia, to New Europe Property Investments (NEPI) for €39.5 million. The shopping centre, totalling 10,000 sqm of GLA and 380 parking spaces, is home to brands such as CCC Shoes, Mango, Orsay and