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Record year on the horizon? New opportunities in the real estate market
Investing in small retail parks
We have very ambitious plans. Ultimately, we want to introduce eco-friendly retail parks to the Polish market, based on solutions used in the West. These facilities will be built from wood and steel prefabricated elements and equipped with photovoltaic installations, mini wind turbines and water retention systems. We are preparing for these investments, but due to the scale, this is a plan several years ahead. To begin with, we are focusing on the implementation of several projects using traditional technologies, most of which we already have signed contracts for by tenants,” says Jerzy Maliszewski, president of Kram Investment.
At this stage, the company plans to build several small retail parks per year, with an area of 4-6 thousand sq m each. The first developments will start next spring, and construction will take about 18 months to complete. Some of the properties on which construction is to begin have legal building permits and are already largely commercialized. Kram Investment’s target is to sell the commercialized properties within two years of the start of construction.
Simultaneously with the implementation of the first projects, the company is preparing documentation for further investments to ensure their continuity in the coming years.
– We are looking for plots of land in cities with a population of about 10,000. Our strategy is to make the best use of the available share capital, which for the time being will cover only part of the investment. We are also considering issuing bonds,” comments Jerzy Maliszewski.
Large zero-emission retail parks
Kram Investment wants to differentiate itself in the market in the future by building large, zero-emission retail parks of more than 10,000 m². The company anticipates that falling costs of modern technologies and preferential financing conditions for ESG-compliant investments will lower investment costs and increase the profitability of such projects.
– We have selected several locations for such facilities, which we intend to keep as assets of the company and earn from them. We believe that green solutions, despite the initial higher costs, will bring long-term benefits for investors, the local community and the environment alike,” emphasizes the president of Kram Investment.
Currently, Kram Investment is working with the CBRE agency, which supports the commercialization process and verification of leases, as well as with renowned design studios specializing in retail parks. Initial talks with international investment funds indicate strong interest in the market for this type of facilities.
– Retail parks are one of the most dynamically developing commercial real estate markets in Poland. This is due to the positive reception of successive investments by consumers and the subsequent strong interest in successive locations by store owners. The key aspect is the location of the retail park, which must give adequate traffic potential, comments Mariusz Majkowski of CBRE.
According to a CBRE report, 37 new facilities have been completed in the Polish retail market since the beginning of 2024, and 12 have been expanded. The development of the retail park segment is focused on the construction of facilities in smaller cities, which account for 28% of the total supply. From January to September, retail space in Poland increased by 337,100 sq m, and 588,100 sq m remains under construction, including four shopping centers above 10,000 sq m.
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