Three projects in two years

Retail parks under development
Next year, construction work is to begin on extending Park Handlowy Bielany in Wrocław. Major changes are now to be introduced to the facility, which has been in operation for 14 years. Within weeks, the re-development of the IKEA store in the park is to start. As for construction work on the other buildings, this is to be carried out next year. The eventual total area of the park is to come to 140,000 sqm - 60,000 sqm bigger than it is today. Inter IKEA Centre Group Poland (IICGP) has been negotiating with potential tenants, but the full list of the new shops has yet to be disclosed, as the completion of the project is set for 2014. "We are planning to broaden the offer of fashion boutiques and entertainment areas in the mall," reveals Karolina Horoszczak, spokesperson for IKEA group. It has become known that Tesco, which occupies 16,000 sqm, is to stay put for the next ten years, after signing a lease extension last year.
The second new project to be announced by Inter IKEA Centre Group Poland is likely to be finished sooner. Centrum Handlowe Franowo in Poznań is to be extended by 14,000 sqm, with the new section to start operating in 2013. Its name will also be changed into Park Handlowy Franowo. "In its present state, Centrum Handlowe Franowo includes a 16,000 sqm gallery and stores of retailers such as OBI with 11,500 sqm and Decathlon occupying 4,000 sqm. After the extension work, the complex, including the IKEA store, will offer 80,000 sqm of retail space with about "35 shops," explains Karolina Horoszczak.

After the big cities
The year 2014 will be an important one for the company, not only due to the opening of an extended section of PH Bielany. In two years' time the developer is intending to launch a new project - a retail centre in Lublin. It will be the first building in eastern Poland and the second (after Port Łódź) to combine a mall with an IKEA furniture store. "We intend the majority of the new shopping centres to be integrated with IKEA stores," says Karolina Horoszczak; "the next investment of a similar style will be carried out in Lublin." Analysts also believe that this is the right decision: "The change of format is a sign of the times - IKEA is living up to customer expectations and taking into account changes on the retail market. The current tenant mix, such as in the Matarnia Park Handlowy retail park in TriCity, has been undergoing a transformation influenced by the recent changes on the housing market and the development of large-format chain stores in Poland, such as Jula and Toys R'Us, and also by IKEA's attractive and proven locations. The new format is full of potential, and when adapted to local market conditions in Rzeszów or Lublin we are confident that it will be a success," emphasises Magdalena Frątczak, manager of the retail department of CBRE.

Continuing expansion
The developer also has an eye on the spending power of the citizens of Rzeszów, Opole, Częstochowa and also Radom. "We have acquired sites in Rzeszów, Częstochowa and Opole for future projects. At this stage it's too early to go into the details," Karolina Horoszczak says. As for the first of these locations, IKEA finds itself in a better situation - the city council has adopted a local zoning plan for the land where the retail premises are to be built. With Radom, however, the situation is still uncertain. "Radom may be appealing to us in the long-term perspective, but for now we are unable to identify any location that would be particularly interesting," explains the developer's spokesperson. However, in Opole IICGP has bought land from Helical Poland and Rank Progress near Turawa Park, but the company would not elaborate on any development plans for the site. As the developer's representative stresses, all these projects, both by IKEA Retail and Inter IKEA Centre Group Poland, are financed with the group's own funds. Swedish company IKEA has been present on the Polish market since 1961. Today the development branch of the group owns such retail parks as Matarnia, Bielany, Targówek, Janki and Rawa, as well as the Franowo and Port Łódź shopping centres. In addition, another IKEA store is in operation in the country - but without a retail park - in Kraków.