Briefs

Polinvest considers a return to the investment market

Despite earlier abandoning its original investment plans, the Gdansk-based owner and manager of the Klif shopping centres in Gdynia and Warsaw, is considering a return to the investment market, after restructuring its debts in 2002. The change of position has come about because of a recent increase in real estate prices. The company has no concrete plans for the moment but is researching the market. 

LPP expands

By the end of 2003 there will be 24 new Reserved shops in Poland, bringing the total to 65. By 2005 this number could come to 110-120.
Reserved's owner LPP plans to spend PLN 23-35 mln on marketing the brand every year, which will be funded by current profits and bank loans. According to recently published data, LPP's net profit for 2002 was PLN 18 mln, which it is forecast will be PLN 31 mln by the end of this year.

President stops investors

Bia³ystok's president is holding up permits for large-scale retail projects. According to the Polish daily, 'Puls Biznesu' his decision is based on a law, which allows for the suspension of zoning plans prepared before 1994.
This has complicated things for investors who have acquired plots in Bia³ystok, among whom are retailers Carrefour and Selgros and developer TK Polska Operations. The city authorities will not say when any new plans will be ready and whether the same locations would be possible.

Is Plaza Centres Poland in trouble?

Retail centre developer Plaza Centres Poland, who have been behind several projects in southern Poland and Warsaw, is experiencing financial trouble. It owes money to general contractors, banks and municipalities.
In 2000 the company declared it would invest USD 2 bln in Poland but now PCP owes PLN 16 mln to the general contractor of its scheme in Ruda Œl¹ska. It also has problems paying off other loans and owes several million PLN to the municipalities of Radom, Rybnik and Katowice for sites.

Kinepolis buys shares

Kinepolis, the Belgian multiplex operator, has announced the acquisition of a 13.4 % stake in Kinepoleast, the company managing Kinepolis Poznañ, Poland's only Kinepolis megaplex and the largest multiplex cinema in the country with 20 screens. Another Belgian company Deficom sold the shares. It has been reported that the Kinepolis Group eventually plans to acquire all of the latter's stake in the megaplex.
Kinepolis currently owns 316 cinema screens in Europe, the majority of which are located in Belgium with 135 and France 78.

An even bigger Reduta

TK Development are to create a retail park around the existing Reduta shopping centre in Al. Jerozolimskie. The first stage of development will involve construction of two storey, 6,000 sqm building which will house a Decathlon sports shop on the ground floor as well as a number of offices.
The construction of the Reduta retail park commenced in mid December 2002 and should be complete in the second quarter of 2003.