Capital Park whets its appetite for some shopping

However, the company recorded a net profit of PLN 27.4 mln compared to a loss of PLN 115 mln in the previous year. Its lower revenue mainly results from higher vacancy rates in its office buildings. The largest declines in leasing revenue were in two of the company’s Warsaw properties: the Alfa building located on Al. Jerozolimskie (-PLN 2.3 mln) and a building on ul. Sobieskiego (-PLN 0.7 mln). The company states that it is systematically working on the rebuilding its revenue streams and that new leases have been signed for an area of over 4,600 sqm, which includes a 2,100 sqm contract signed with Provident in the Alfa building and a 1,800 sqm lease signed by Hebe. In 2014 Capital Park is planning to purchase a number of retail properties for its Real Estate Income Assets FIZ AN fund. “We have bought two centres in Olsztyn and in Warsaw’s Ursynów district. We are now considering the purchase of convenience retail centres in Silesia and a few shopping centres in the Pomerania and Wieldkopolska provinces). We can spend around PLN 50-60 mln of our own funds on the purchases,” says Marcin Juszczyk, the investment director at Capital Park. With the increase in the size of the fund’s portfolio, the company intends to sell new certificates to investors. “This year we want to double the size of the fund and offer new certificates to investors every year,” stated Jan Motz, the president of the board at Capital Park. “We will keep our involvement in the fund at 15 pct,” he adds.

In June Capital Park is planning to finish the first stage of the Eurocentrum office complex, which is 51 pct leased while four new leases are to be signed soon. The completion of the second stage could, however, be postponed and it is not likely to take place in Q2 2016. So far it is not clear when the construction of the group’s flagship project – Art Norblin is to start. The company is planning to start the commercialisation of the complex in Q4 this year but first has to answer objections from the local community. In January 2014 an appeal was made against the issue of the building permit, which is now being heard. “We hope that the provincial governor will rule in our favour by the end of April and early May,” says Kinga Nowakowska, the operations director of the company. “An amendment to the spatial study that includes our project is also being considered by the city of Warsaw. The changes will allow us to locate the retail and service area in the complex more flexibly,” she adds. The company also holds a 0.6 ha development plot near the Alfa building on Al. Jerozolimskie, the development of which is at the financial analysis stage. Negotiations have already begun with a potential investor, who intends to lease out apartments in one of the two towers that is being planned for the site. Both of the proposed new buildings would be of the same height as the Alfa building and would offer a useable area of 12,000 sqm. One of the new buildings could be used as a hotel, although the final decision as to their function has not yet been taken.