Capital Park Group and Akron Group set up joint venture
Capital Park Group and Akron Group have signed a joint venture agreement for the ETC first generation shopping centre project in Gdańsk.
“The decision to commence this cooperation is an element of implementation of Capital Park’s long term strategy envisaging investing in medium-size first generation shopping centres with value creation potential,” commented Marcin Juszczyk, member of Capital Park’s Management Board and Investment Director. “The advantages of such projects are stable market position, loyal customers and tenants generating satisfying turnover. More and more new tenants are interested in such proven projects in their new shape.”
The investors’ planned actions are connected with implementation of so-called 4RE strategy for the centre that involves redesign, remodelling, repositioning (and possible rebranding), and reletting. The concept aims to readjust the project to current expectations and needs of both existing and potential customers and tenants that are dictated by changing consumer attitudes and behaviours.
Under the JV agreement Capital Park Group will hold 53 percent and Akron Group 47 percent project. Modernisation of the centre will be co-financed by investors and with a bank loan granted by Alior Bank.
Capital Park Group and Akron Group are joining forces to refurbish and modernize the well-established ETC Gdansk shopping centre. Stefan Ausch, Managing Partner of Akron Group, said: “By combining the expertise and experience of both groups, a highly attractive refurbishment concept for ETC Gdansk has evolved which is proven by the successful pre-letting. This is a milestone in our strategy to re-develop, refurbish and lift established and well-located first generation shopping centres up to modern standards.”
Located on Rzeczpospolitej Avenue in Gdańsk, ETC was the first shopping centre to open in the Tricity after the transformation of the political system. A two-storey retail and service building comprising a total area of 9,000 sqm is located in the immediate vicinity of residential developments. For customers travelling by car there is a parking lot which accommodates 215 vehicles.
In addition to the existing long-standing tenants including Intermarche, RTV Euro AGD, DoZ pharmacy, Szydłowski bakery, Ray Obuwie and Textil Market, ETC Gdansk will after modernization also host a Rossmann drugstore, an Egurola Dance studio, a ZooKarina pet food shop and various other new and attractive shops.
Modernisation of ETC Gdańsk will involve a full modernization of the interior and the centre’s facade, changes to the internal layout, communication and circulation of the building. The quality of retail space will meet nowadays expectations of customers and tenants alike. A valid building permit is already in place and a general contractor has already been selected. Construction works will commence in May of this year. Works are to be completed in late 2015/early 2016.