The maturing of Mayland

Yann Guen, vice-president
of the management board of Mayland Real Estate: The changes that we have introduced are our answer to the changing market and evolving economic conditions. We are adjusting the company to the new challenges reality is confronting us with. We are not changing the business model, but introducing new solutions instead. We are still a developer - we build and sell real estate. We have a few retail projects in the pipeline that we want to develop. Some of them are under construction, others at the financing stage, and there are also some we are developing concepts for.

Fabrice Paumelle, director of the project development and marketing department: The market has been changing. There will be a leasable area of 500,000 sqm delivered this year. According to our observations, 15-20 pct of this space is located in projects that have been extended or converted. We are following the conditions set by the market and adding new solutions to our basic activities - extension process management, as well as renovating and remodelling shopping centres that are already in operation. We are now ready to take on such a commission whenever clients request it. We have an idea for it and the necessary experience. And you need to know that an extension is much harder than building a shopping centre from scratch. We enter a living organism, which, after all, has to carry on functioning.

The structure of Mayland RE has also been changing. You had to make part of your team redundant...

Yann Guen: We have been changing the structure of our company. At some point the team became too large for the requirements of the market - so we decided to reduce the number of our employees. It is difficult, but a necessary element of the maturing of the company. We have to adapt our structure to the business model, the products we offer and market forecasts. We have one of the strongest development plans in Poland and have been introducing changes, but they have to be adjusted to the changing market requirements.

Are you not afraid that by developing a division for the renovation of shopping centres, you will become the competition for your own development business?

Yann Guen: The client is the one who ultimately decides which way to go. We for our part always try to create something unique that nobody has thought of before.

What are Mayland's investment plans?

Yann Guen: We have more than five years of experience as a developer. Our schedule currently includes 12 projects [such as Serenada in Kraków, Idylla in Wrocław, Aleja Słońca in Szczecin, Bella Dolina in Rzeszów, the Wzgórze mall in Gdynia, and the Jantar centre in Słupsk - editorial note]. You need to remember that the development of retail projects depends on banks' decisions and investors these days. We have to bear in mind the conditions that need to be fulfilled in order to obtain some financing. We are at different stages in individual projects: securing plots or applying for site development conditions decisions. Investment processes can take many years... We are currently working on a completely new project - different from standard retail projects in all respects. It will really be something unique. I will not reveal the others - these are the developer's tricks of the trade.

Fabrice Paumelle: We have now completed the construction of the Jantar shopping centre in Słupsk. We are carrying out the extension and conversion of the Wzgórze mall in Gdynia. We are obtaining the financing for Serenada and have also started the commercialization of other projects: in Szczecin and Rzeszów.

Have you already received the building permit for Serenada in Kraków? When will the construction work be launched?

Yann Guen: Yes, we have the permit for the construction of the Serenada project in Kraków. The start of the construction work depends on obtaining a loan. We are planning to commence the implementation of the project in H2 next year. We have already acquired key tenants for the project and its commercialisation level has allowed us to start negotiations with the banks.

Are you planning to develop your shopping centre management department?

Yann Guen: Even though we are currently managing five retail facilities, the development of this department is not a priority for us. Fabrice Paumelle: If we were to manage the centres we extend, then we would be well interested in that. However, the extension of the management department alone is not our basic business.

Interview conducted by Aneta Cichla