Immoeast AG is going to expand one of the most successful real estate investments in Poland. The Silesia City Center in Katowice has become the most important shopping center in the entire region and, since its opening in November 2005, shown an impressive above-average performance. The number of customers this year has risen 3.4 percent year on year, turnover with tenants 5.4 percent. Rental income even rose an above average 9.1 percent. The fact that already upon opening 100 percent of the available space was let also demonstrates the shopping center’s success. The average remaining term of existing rental agreements is six years. Due to the country’s robust economic constitution, the level of domestic consumption in Poland is high, providing growth especially to well-structured shopping centers such as the Silesia City Center.
12.8 million visitors per year, tendency rising
Strong international anchor tenants such as retail chains Tesco, Saturn, C&A, Zara and Intersport are pleased with the steadily growing visitor numbers. In 2008 the electronically counted customer frequency had already totalled 12.8 million. Daily there are more than 35,000 visitors to the shops, which are distributed over 66,000 sq. m.
Expansion by 16,500 sq. m
In order to accommodate this satisfying development, Immoeast AG is planning to expand the shopping center and to create additional rental space on two sales floors after all necessary board approvals have been obtained. The property on which the new section is to be built already belongs to Immoeast AG and also has the required planning approval so that a speedy realization is imminent. The expansion is to be concluded in spring 2011, whereby the total investment costs will be EUR 48 million. The square floor plan is to create the most attractive and flexible rental space combined with maximum space efficiency and is to be accessible through two entrances from outside and through direct entry from the existing shopping center. Optimal vertical frequency is to be created on the inside by two escalators in the mall and another escalator within shops that have two levels.
Numerous international chains have already signalled interest in renting retail space there and are in negotiation with local management concerning long-term rental agreements.
Prizewinning, outstanding performance
That the Silesia City Center is not only of enormous regional significance, but nationally also one of Poland’s most renowned retail centers is documented by the numerous awards the center has been distinguished with to date. In a “Tenants’ Satisfaction Study” conducted by Market Side it was recently named Poland’s best and most popular shopping center among tenants. Further distinctions stem from Newsweek and the International Council of Shopping Centers.
Near the Katowice city center, directly on the A4 (Dresden-Cracow motorway, Poland’s most important east-west link); 13 bus lines and 5 tram lines stop directly at the location.
approx. 66 000 sq. m
Tesco, Saturn, C&A, Zara, Intersport, Cinema City
Average remaining term of existing rental agreements
Customer frequency 2008
16 500* sq. m to 2 sales levels
Start of construction April 2010, completion March 2011*
Total investment costs
approx. EUR 48 m
* Latest update says about 18 500 sq. m of a new retail space and Q4 2011 as the completion date.
source: Immoeast AG