Booting up

Dozens of companies are already operating in one of the most dynamically developing economic zones in Poland, while the Słupsk area should see the opening of three shopping centres by 2008

Following the reform of local government in Poland in 1998, Słupsk was relegated from the status of provincial capital, but despite this did not go the same way as other downgraded cities and today cannot complain of a lack of investor interest. The Słupsk Special Economic Zone has been expanding since 1997 growing from its initial 136-ha to today’s 219-ha – 43.5-ha of which is still waiting for tenants. Some 50 companies operate in the zone managed by the Pomeranian Regional Development Agency, which together have invested a total of PLN 605 mln, and employ almost 2,100 people. The largest investors are the ‘Łosoś’ Fish Processing Works, Bajcar and M&S Okna i Drzwi (both companies producing windows and doors), Glas, Woźniakowski, Jankowiak (car windscreens) and the Italian Kapena bus manufacturer. Scania – the largest bus manufacturer in Europe – also has a plant within the city, as do Plast-box and Gino Rossi (both stock exchange listed companies).

Wojciech Federowicz, Gino Rossi’s export director, thinks that: “The growth potential of Słupsk is similar to that of other cities of a similar size, but Słupsk has the advantage of its economic zone. During the 15 years which the company has been active here, 3 facilities have been built here, comprising a production, logistics and administration section with a total area of 5,200 sqm. We decided to set up in Słupsk since, first of all, the company owned land on which a footwear plant could be built according to the local development plan – but also because the local population has a large pool of people with experience and qualifications in footwear production, educated in the local vocational school and footwear technical college, and living both within the city and the surrounding area.”

But the poor transport infrastructure can put off investors considering Słupsk as a location (as is the case in other towns). Wojciech Federowicz of Gino Rossi claims that Słupsk’s greatest minus is its location, which is most inconvenient in terms of travelling to Warsaw and other large cities. The poor state of the roads, the small number of railway connections and the absence of air links must also be taken into account.

The American anti-missile shield planned to be installed less than 30 km from Słupsk does offer some opportunity for change – though this may not be the best news for the neighbouring seaside town of Ustka, since it could frighten away tourists. For Słupsk, however, it could herald an investment boom, since investors are said to have nerves of steel.

Ready, steady, go!

Only a very short time ago Słupsk was still very much a city forgotten by developers of modern retail. But now three companies are building shopping centres here: Echo Investment (CH Arena), Mayland Real Estate (CH Jantar) and Polimeni (Galeria Słupsk). Investors are working around the clock, since the first mall opened is likely to benefit from those customers who decide to remain loyal to it when the others finally arrive on the scene. Currently, Mayland Real Estate’s Jantar centre seems to be leading the field in this department.

Anne Plaistance of Mayland Real Estate asserts that: “The Jantar Shopping Centre will open in the first half of 2008, as the development process is proceeding without any problems. I have learned that one of our competitors has still not been granted a building licence, while another one has encountered problems of an archaeological nature.”

Jantar will contain leasable space of 35,000 sqm, which is already filling up. Real with 9,000 sqm is to open one of its supermarkets within the mall, H&M with 1,800 sqm is to open the largest clothing outlet, while Smyk (around 800 sqm), Empik and Carry (600 sqm each) have also signed tenancy contracts. Jantar’s handy location is another of its strong points, served by a dual carriageway and close to the largest housing estate in Słupsk.

Echo Investment – its competitor – is to start work on Arena in the last quarter of 2007, with tenancy contracts for this centre having already been signed for more than 50 pct of the available space – the principal tenants being Tesco (around 9,000 sqm), Galeria Centrum, Media Markt, and with Kolporter and Rossman next on the list. There will be 150 retail outlets within a total area of 84,000 sqm, as well as an entertainment section. Wojciech Gepner of Echo Investment claims that the company is confident of Arena’s future market position, arguing that the quality of the products offered will be decisive in the battle for customers rather than the moment it opens to the public.

Polimeni has been the most unfortunate out of the three retail developers. Galeria Słupsk is well under construction, but the development process has been plagued by several surprises indirectly connected with the mall’s excellent location – the site being in the city centre between two old tenement buildings. During earth removal the remains of 18th buildings were revealed, which alerted local archaeologists. Construction was soon restarted, but a short time later it turned out that the construction of an underground car park (for 275 vehicles) would endanger the neighbouring houses built on very boggy land, complicating matters somewhat. The whole investment is to cost around EUR 30 mln, while the centre will boast an area of more than 33,000 sqm.

Paweł Rzepecki, Polimeni International development’s director, stresses that: “The element which will distinguish Galeria Słupsk from the other shopping centres is, in our opinion, its location in the very heart of the city. Research by the Geni Polska agency in mid-September 2006 – after the tourist season – reveals that around 3,000 people daily pass down ul. Tuwima, which is where Galeria Słupsk is to be. The number will substantially increase as tourists visit the city centre, which has functioned as its old town, shopping district and something of a promenade for some time. It is clear that the process of shopping centre transformation that is now occurring in Poland is taking place in a manner similar to that of the USA and western Europe, as we evolve from the hypermarket stage with shopping malls on the city peripheries to III-generation centres (such as Galeria Słupsk) – that is, shopping malls with delicatessens in the heart of the city.”

The development of all 3 centres continues apace, with the battle for customers already begun. Mayland, in a highly unconventional manner, is trying to rally Słupsk’s citizens into a unit with a single purpose by becoming the sponsor of the local football club.

Nothing really unusual

The Słupsk housing market is nothing unusual and differs little from the situation in cities of a similar size. The largest developer is the city council, which delivered 9 communal buildings with 412 homes between 2000 and 2006 and one 60-flat block with 20 garages this year.

Only individual commercial projects are presently underway within the city. The Amaco company is developing a tenement building with a residential and services function on ul. Solskiego. Service business outlets will be on the ground floor, with 20 2- and 3-room apartments on upper storeys as well as 2 two-level apartments. They will be between 50.5 and 73.5 sqm in size. This project is scheduled for completion in August 2008. Mat-Bet is the largest private housing developer, which has undertalem three projects in the city: estates on ul. Słowackiego, ul. Moniuszki and ul. Bogdanowicza. These are neither large nor sophisticated projects. The most interesting building coming to Słupsk could be one on ul. Jana III Sobieskiego, which the Komas company is planning. This 6-storey building with a shopping and services ground floor is to include 78 flats of between 37 and 67 sqm. The investment is to get off the ground this year and is due to be ready in September 2008.

There is very little land for housing construction available in Słupsk, but the city is planning to prepare 5 sites with full technical facilities and measuring 21-ha for single- and multi-family homes by 2009. As many as 219 hectares is being taken up close to Ustka in the economic zone, while the city is surrounded on the other side by privately owned allotments. The price of homes on the secondary market is between PLN 2,500 and 3,500 per sqm, with homes available in renovated tenements at somewhat lower prices (PLN 1,800-2,800).

There is also a dearth of office and warehouse space in Słupsk. No new offices are being developed, while old warehouses can only be found on the city outskirts.            

Zuzanna Wiak