POLAND RETAIL DESTINATIONS

Transcription

1 POLAND RETAIL DESTINATIONS 00 EDITION

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3 POLAND RETAIL DESTINATIONS 00 Edition 00 EDITION Retail in Poland Warsaw Upper Silesia Wroclaw Poznan TriCity 0 Krakow Lodz Szczecin 0 Retail Investment Market Practice and Definitions DISCLAIMER00 CBRichardEllis Information herein has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performence of the market. This information is designed exclusively for use by CB Richard Ellis clients, and cannot be reproduced without prior written permission of CB Richard Ellis.

4 RETAIL IN POLAND RETAIL IN POLAND SHOPPING CENTRE STOCK IN POLAND (million sq m) Shopping Centre Stock New Completions * Forecast * SHOPPING CENTRE STOCK IN MAJOR CITIES ( 000 sq m) Szczecin Lodz Krakow TriCity Poznan Wroclaw Silesia Warsaw Poznan Existing Under Construction Planned till 0 SHOPPING CENTRE DENSITY IN MAJOR CITIES (sq m per,000 inhabitants) Wroclaw Warsaw Tri -City Krakow Lodz Szczecin Upper Silesia GENERAL OVERVIEW Poland has proven to be considerably resilient to the current economic downturn. Poland outperforms several Euro zone countries in terms of international ratings and is the only European Union country that avoided GDP decline in any of 009 quarters. Domestic market remains poised for further growth, but Polish economy as a 'host country' relies heavily on the Western European sources of investment and financing as well as their markets for export. Therefore, further performance of the neighbouring economies, especially German y s, remains crucial to the long term economic prosperity. RETAIL STOCK At the end of 009 shopping centre stock in Poland amounted to. million sq m located in schemes, of which (% in terms of GLA) were specialized shopping formats ( retail parks and factory outlets). With little over 00 sq m of GLA per,000 residents and weak high streets, modern retail network in Poland remains underdeveloped. In 009 the Polish retail market continued to expand dynamically but it was the last in the row of the record-breaking years in terms of the shopping centre stock completion. New shopping centre additions reached nearly 0,000 sq m of GLA, after the completion of approximately 00,000, and 0,000 sq m in 00 and 00 respectively. The market has seen the completion of several large-scale developments, including Galeria Jurajska in Czestochowa, Galeria Malta in Poznan, and Bonarka in Krakow. % of new space was delivered in the eight largest urban centres in comparison to % added to their markets in 00, marking the gradual return of developers to the medium and large Polish cities. Large cities and urban regions continue to lead the way in terms of the retail stock volume as well as the diversity of retail schemes. Out of the total. million sq m of existing shopping centre space in Poland, around 0% is located in Poland's eight key cities and regions. Given that the key urban hubs jointly encompass some. million registered inhabitants, it translates into some 00 sq m of retail space per,000 people in Poland's prime urban centres. The current economic downturn became the catalyst for the real estate market and for its retail sector in particular. Drying pipeline, expected to add up approximately 0-0,000 sq m of GLA in 00 and 0 in total, indicates that the Polish retail market has reached developmental threshold, when qualitative change is to replace quantitative growth. Market diversification will be reinforced and retail formats are to diversify further, with both small convenience / neighborhood centres being constructed alongside with regional parks such as Helical's Europa Centralna in Gliwice. City centre (re)developments, as for example Avestus RE s Hala Koszyki in Warsaw, will go in pair with green field projects such as Liebrecht&wooD's Morski Park Handlowy in Gdansk (Tri-City). 00 CB Richard Ellis Polska

5 SHOPPING CENTRE C OMPLETIONS (%) * RETAIL STOCK cont. Decreasing pipeline is coupled with reduced tenant demand for the retail space in shopping centres. While the best schemes in various locations still enjoy great popularity and become fully commercialized prior to their opening or exercise waiting lists of tenants, other projects face difficulties with (re)commercialization, as many retail operators are far more cautious with their expansion plans. Also, for the first time there are some winners and losers among shopping centres as competition in many locations tightens and tenants' market makes retailers much more selective and opportunistic. RETAIL IN POLAND Major Cities Medium - Sized Cities Small - Sized Cities QUICK STATS POLAND PROGNOSIS FOR 00 Investment risks and profitability are now under much closer scrutiny than they were in the boom times, but there is still a number of firms interested in shopping centre retailing. Some of them have limited their expansion plans, but others have decided to take advantage of the growing vacancy rate and decreasing rents and are opting for prime pitch space in order to secure better locations for their businesses. Robust consumer demand, backed with the solid economic fundamentals, create a good basis for the market's further development. SUPPLY DEMAND VACANCY RENTS YIELDS PRIME SHOPPING CENTRE RENTS IN Q 00 (EUR/SQ M/MONTH) RETAIL RENTS Shopping center rents have seen some noticeable decline over the last months. Prime asking rents in Warsaw reduced by a third from their peak at EUR 0 /sq m/ month in the end of 00 to EUR 0/ sq m/ month in the second half of 009. This translates into % decline when expressed in zlotys, as the Polish currency has lost to Euro over that same period, and the market practice of denominating shopping centre rents in Euro but executing payments in the local currency prevails. Warsaw, where demand remains healthy and there is no evidence of further downwards pressure on rents, remains the most expensive retail location in Poland with prime rents at about EUR 0-0/ sq m/ month (for the best unit of approximately 00 sq m and located in a prime shopping centre). Prime shopping centre rents across Polish major cities stay in the range between EUR 0 - /sq m/ month. Lodz Szczecin Poznan Wroclaw Krakow Upper Silesia Tri-City Warsaw Service charges in shopping centres stay at EUR - / sq m/ month. In the retail parks rental rates and service charges for units of approx.,000 sq m remain in the range of EUR 0 and EUR / sq m/ month respectively. However, despite rental levels stabilizing, tenant's market translates into increased expectations in terms of other incentives, such as capital contributions towards shop fitting and rent-free periods. High street rents in Warsaw reach up to EUR - 0 /sq m/ month, but are considerably more benign in other key locations. 00 CB Richard Ellis Polska

6 WARSAW WARSAW GENERAL OVERVIEW As the prime business hub of Central and Eastern Europe, Warsaw continues to develop despite the economic downturn. With increasingly service-oriented economy and prime work (both in terms of employment and earnings) opportunities, Warsaw continues to be the destination of choice for migrants and expat riates, leading to the further centralisation of wealth and power. Political, business, and cultural centre of Poland, Warsaw encompasses some. million (registered) inhabitants living in the city and million in total when its functional region is included. DOMOTEKA IN TARGOWEK RETAIL PARK KEN CENTER RETAIL STOCK With. million sq m of GLA, Warsaw remains the country's prime retail hub. The density ratio of modern retail provision seems to be relatively high when the population of the city itself considered (some 0 sq m per,000 people). However, recalculated for the whole Warsaw agglomeration, the density ratio falls to about 0 sq m of GLA per every,000 inhabitants. 009 saw only two completions:,00 sq m of GLA extension of the KEN Centre - E.Leclerc anchored shopping centre, and another,00 sq m added in Domoteka a top end of the market, home and furniture centre that operates in the Targowek Retail Park. The 00 pipeline will be equally limited with only two retail projects, apart from a few retail warehouses, being currently under construction:,000 sq m of GLA Wolf Bracka department store and,000 sq m Tesco's project at Fieldorfa Street. WOLF BRACKA Warsaw's retail market is far from being saturat ed. Market niches persist in terms of the geography, type of formats, and store concepts. For example, there is a considerable opportunity for convenience centres (supermarket anchored developments with small retail and service gallery) in several dynamically developing residential districts, including Bialoleka, Wilanow and Wawer, where retail provision remains scarce. On the other end of the market spectrum there is a room for some larger formats with regional catchment in the southeast and north-west of the city. Also, with only a slow increase in the number of quality high street units, there are some substantial opportunities for luxury and ancillary retail facilities in the city centre. Arkadia and Zlote Tarasy both continuously feature as the most popular retail destinations of Warsaw. RETAIL RENTS R etailers demand remains robust and there is no evidence of further downwards pressure on rents. Warsaw remains the most expensive retail location in Poland with prime rents at about EUR 0-0/ sq m/ month (for the best unit of approximately 00 sq m and located in a prime shopping centre). Average rents stay at EUR 0 /sq m/ month. Service charges in shopping centres are at the level of EUR - / sq m/ month. High street rents stay at EUR 0 / sq m/ month. In the retail parks rental rates and service charges for units of approx.,000 sq m remain in the range of EUR 0 and EUR / sq m/ month respectively. 00 CB Richard Ellis Polska

7 TYSIĄCLECIA WOŁOSKA PUŁAWSKA PUŁAWSKA PUŁAWSKA TRAKT WARSAW S RETAIL MARKET IS WELL DEVELOPED BUT IT IS FAR FROM SATURATION AS MARKET NICHES PERSIST SELECTED RETAIL SCHEMES IN WARSAW EXISTING No Project No Project Arkadia Reduta Wola Park Promenada Centrum Janki CH Wilenska Targowek Retail Park Sadyba Best Mall WARSAW Zlote Tarasy Centrum Krakowska Galeria Mokotow Blue City 9 Janki Retail Park 0 Targowek Centre 9 0 King Cross Klif Fashion House Piaseczno Factory Outlet Center Galeria Rembielinska Centrum Skorosze QUICK STATS WARSAW PROGNOSIS FOR 00 UNDER CONSTRUCTION Wolf Bracka Tesco Fieldorfa SUPPLY DEMAND VACANCY OSTROŁĘKA MODLIŃSKA NIEPORENT PŁOCHOCIŃSKA RENTS GDAŃSK YIELDS PUŁKOWA BIAŁYSTOK MODLIŃSKA E TORUŃSKA 0 ARKUSZOWA ARMII KRAJOWEJ ODROWĄŻA 9 RADZYMIŃSKA JAGIELOŃSKA ŚLĄSKICH SŁOMIŃSKIEGO CYRULIKÓW WĘGRÓW WISŁOSTRADA LESZNO POZNAŃ POŁCZYŃSKA ŻYRARDÓW 0 POWSTAŃCÓW GÓRCZEWSKA WOLSKA AL. JEROZOLIMSKIE ŁOPUSZAŃSKA PRYMASA HYNKA GRÓJECKA ŻWIRKI I WIGURY AL.NIEPODLEGŁOŚCI ALEJA KRAKOWSKA OKOPOWA KASPRZAKA AL. SOLIDARNOŚCI WAWELSKA MARSZAŁKOWSKA ARMII LUDOWEJ CZERNIAKOWSKA GROCHOWSKA SOBIESKIEGO AL.WILANOWSKA POWSIŃSKA OSTROBRAMSKA WAŁ MIEDZYSZYŃSKI PŁOWIECKA MARSA LUBELSKI WAŁ B.CZECHA PATRIOTÓW TERESPOL LUBLIN MIEDZYSZYŃSKI PRZYCZÓŁKOWA DĘBLIN KATOWICE 9 KRAKÓW E.DREWNY GÓRA KALWARIA PIASECZNO 00 CB Richard Ellis Polska

8 UPPER SILESIA UPPER SILESIA EUROPA CENTRALNA GLIWICE STAWOWA STREET KATOWICE GENERAL OVERVIEW The Upper Silesia Agglomeration encompasses some. million people living in Katowice, Gliwice, Zabrze, Bytom, Chorzow, Sosnowiec, Ruda Slaska, Dabrowa Gornicza, Myslowice, Czeladz, Bedzin, Swietochlowice, Siemianowice, Piekary Slaskie, Jaworzno, Knurow, Tychy and Mikolow. Silesia is the second largest urban hub of Poland, after Warsaw. As the industrial centre of Poland, Upper Silesia region is among the best developed in terms of transport infrastructure, but also faces some serious structural problems. RETAIL STOCK The Silesia Agglomeration offers currently,000 sq m of modern retail stock. Apart from,900 sq m of GLA opened in the latest Fashion House Sosnowiec extension, there were no new additions to the stock in 009. Silesia City Center continues to hold the reputation of the most popular retail destination of the region. With modern retail density currently at only 0 sq m of GLA per capita (when shopping centres and specialised schemes included) Upper Silesia still boasts some prime retail development opportunities. AGORA BYTOM With nearly 0,000 sq m of GLA currently under construction, the region will see a substantial stock increase in the near future. The key projects being built include Helical's Europa Centralna in Sosnica and Parkridge's Focus Mall in Gliwice, which will add,000 and,000 sq m of GLA to the stock respectively. Even with these new additions Silesia Agglomeration continues to create some prime development opportunities. For example in Katowice's draft version of Studium published in December 009 there were some new locations, mainly south of the city centre, singled out as potential sites for new large scale retail facilities. Together with the growing shopping centre network, high street retailing in Katowice is improving, albeit at a slower pace. Stretching along Maja and Stawowa streets, Silesia's main high street is gradually experiencing the positive impact of revitalisation plans implemented by the city. Neinver's project, which is located on the plot adjacent to the Katowice main railway station and is to see the construction start this spring, will provide the gravity point, reinforcing the retail function of that central area. Still, given the size and the potential of its catchment, Katowice's high street stays considerably underdeveloped both in terms of its size, quality of units, as well as the retail offer. RETAIL RENTS The rental rates for prime units are currently at a level of EUR /sq m/month. Service charges are between EUR /sq m/month. Rents for units in retail parks range from EUR 9 /sq m/month. The high street retail rents have seen some considerable declines to the current EUR /sq m/month. 00 CB Richard Ellis Polska

9 9 SILESIA BOASTS SOME PRIME RETAIL DEVELOPMENT OPPORTUNITIES SELECTED RETAIL SCHEMES IN UPPER SILESIA EXISTING No Project GLA (sq m) Opening Date Silesia City Center Katowice, M Czeladz,00 99 UPPER SILESIA QUICK STATS UPPER SILESIA PROGNOSIS FOR 00 SUPPLY DEMAND VACANCY RENTS Stawy Katowice, Forum Gliwice, M Zabrze, Arena Gliwice, Auchan Sosnowiec, Plejada Sosonowiec, Rawa Retail Park Katowice, Pogoria Dabrowa Gornicza 0, UNDER CONSTRUCTION Focus Mall Gliwice, Agora Bytom, YIELDS Europa Centralna Retail Park,000 0 Tarnowskie Góry Radzionków Piekary Wojkowice Gliwice Bytom Zabrze Chorzów Świętochłowice Siemianowice Śląskie 9 Katowice Będzin Czeladź 0 Dąbrowa Górnicza Sosnowiec Ruda Śląska Mysłowice Jaworzno Mikołów Tychy 00 CB Richard Ellis Polska

10 0 WROCLAW WROCLAW GENERAL OVERVIEW With 0,000 residents, Wroclaw is the key business and cultural hub of Dolnoslaskie Voivodship. Over the last decade Wroclaw came at the top of the Polish cities in terms of the quality of business environment and became a destination of choice for many domestic and foreign investors, largely due to the proactive and open policies of the city hall led by the city president Rafal Dutkiewicz. The diversity of Wroclaw s economy, with a strong manufacturing sector as well as high quality academic offer, create good fundamentals for Wroclaw's long term economic viability. RENOMA SWIDNICKA STREET BIELANY RETAIL PARK RETAIL STOCK Wroclaw's retail offer consists of modern retail schemes providing approximately 0,000 sq m of GLA in total. With nearly 00 sq m of shopping centre space per every thousand of inhabitants, in terms of density Wroclaw's retail offer is the second most developed, after Poznan, among the leading Polish markets. The shopping centre offer is complemented with other formats as well as a relatively well developed high street retailing. The traditional high street in Wroclaw is Swidnicka Street, the location for two well-known department stores Renoma and Solpol, as well as many up-market brands. The Old Town, Wroclaw's main tourist attraction, boasts service, leisure and tourist offers with many restaurants and cafes, art galleries and bank branches. Bielany Hub with Bielany Retail Park is another established Wroclaw's retail destination. The shopping centre stock in Wroclaw has nearly doubled between 00 and 00, when some 0,000 sq m GLA were added to the market in six shopping centres: Pasaz Grunwaldzki, Arkady Wroclawskie and Magnolia Park in 00 and Marino Shopping Centre, Mlyn Retail Park and Futura Park in 00. Retail development has slowed down in 009 and the last year saw only the addition of renovated and extended Renoma department store. The most recent addition to the stock is Family Point, Praktiker -anchored shopping centre at Krakowska street, which operates from Q 00. Despite the recent stock increase, Wroclaw's retail potential is still perceived as high by many developers who are either constructing or planning new developments, such as Mayland RE and Apsys. Their appetite for Wroclaw has been partially boosted by 0 Euro Cup preparations, where infrastructural projects are being accompanied with retail, the example of which is Maslice. The construction of a 0,000 sq m shopping centre in direct vicinity of Stadion Slaski, initiated by one of the leading Polish entrepreneurs - Zygmunt Solorz, is to start soon, as the project is to be completed prior to the championships. RETAIL RENTS Prime shopping centre rents for units of approximately 00 sq m are at the level of EUR 0 /sq m/month. Rents for units of,000 sq m in retail parks, remain at EUR - 0 /sq m/month. The rental levels for high street units range between EUR /sq m/month. 00 CB Richard Ellis Polska

11 SUŁ WROCLAW S NEW RETAIL PROVISION IS BEING PREPARED FOR EURO 0 SELECTED RETAIL SCHEMES IN WROCLAW EXISTING No Project GLA (sq m) Opening Date Magnolia Park Auchan Bielany,000, WROCLAW 9 0 Pasaz Grunwaldzki 0, Korona, Bielany Retail Park,00 99 Arkady Wroclawskie, Renoma, Borek, Galeria Dominikanska, Marino 9, OBORNIKI ŚLĄSKIE E POZNAŃ ZAJĄCZKOWSKA LUBIN 9 SREDZKA KOSMONAUTÓW A OBORNICKA OWSKA E 0 KRZYWOUSTEGO AL.JANA III WARSZAWA SOBIESKIEGO QUICK STATS WROCLAW PROGNOSIS FOR 00 JERZMANOWSKA ŻERNICKA LOTNICZA LEGNICKA GRABISZYŃSKA GEN. HALLERA BAŁTYCKA 9 HUBSKA TRAUGUTTA ARMII KRAJOWEJ WYSZYNSKIEGO PL.GRUNWALDZKI KRAKOWSKA KROMERA SWOJCZYCKA STRACHOCIŃSKA OŁAWA SUPPLY A MOKRONOSKA BARDZKA OPOLSKA DEMAND VACANCY RENTS YIELDS KĄTY WROCŁAWSKIE LEGNICA E0 A JELENIA GÓRA E KŁODZKO AL. KARKONOSKA OPOLE 9 BUFOROWA STRZELIN OPOLE 00 CB Richard Ellis Polska

12 POZNAN POZNAN GENERAL OVERVIEW Home to some 0,000 residents, Poznan is a well established trade, exhibition and business centre of the country's western regions and the entry-point of choice for many German-speaking producers and outsourcers. Poznan's economy is the third strongest functional regions of Poland (after Warsaw and Silesia Agglomerations) in terms of economic performance. MALTA RETAIL STOCK With the opening of,000 sq m of GLA Galeria Malta, Poznan's retail market has seen a major addition to the stock in 009. The overall retail provision has reached about 0,000 sq m, of which nearly 0,000 sq m are located in two specialized schemes Neinver's Factory Outlet and Inter IKEA's Centrum Franowo, including its recent,000 sq m extension. Neinver's Galeria Malta, located in the vicinity of Malta Lake in Poznan, is among the best retail schemes in Poland and, in terms of overall retail offer and standard, it stands alongside with Stary Browar so far the best in the city and often awarded retail concept. POLWIEJSKA STEET Poznan boasts retail density of about 900 sq m of retail space per every,000 inhabitants and in terms of volume is by far the best provisioned city of Poland. Retail stock in the city will grow further upon the completion of Inter IKEA's Bulwary Poznanskie - a 0,000 sq m of GLA retail park, scheduled for 0. Other planned large retail projects include,000 sq m Apsys' Lacina and 0,000 sq m Echo Investment's Metropolis. However, even in this highly provisioned market some niches persist. BULWARY POZNANSKIE Despite high retail development activity market niches persist, as the construction of small, convenience-type of formats could potentially be more adequate in some local neighbourhoods. Also, the provision of quality high street units in Poznan remains very limited, as the market is dominated by large-scale retail developments. The city s Old Town is the main traditional retail zone. RETAIL RENTS Prime retail rents for units of approximately 00 sq m in shopping centres are currently at the level of EUR 0 /sq m/month. Rents for the best high street retail units are currently at EUR /sq m/month. 00 CB Richard Ellis Polska

13 GŁUSZYNA WSKA IN TERMS OF STOCK DENSITY POZNAN IS NOW THE BEST RETAIL PROVISIONED AMONG POLISH CITIES SELECTED RETAIL SCHEMES IN POZNAN EXISTING No Project GLA (sq m) Opening Date Galeria Malta Stary Browar King Cross Marcelin,000,00, POZNAN Auchan Komorniki,00 00 Galeria Pestka,00 00 Auchan Swadzim, M Poznan,00 99 Poznan Plaza 0, Centrum Franowo 0, QUICK STATS POZNAN PROGNOSIS FOR 00 0 Panorama,00 99 SUPPLY DEMAND RADOJEWO GROJNICKA VACANCY POZNAŃSKA RENTS OBORNICKA YIELDS KOSZALIŃSKA SŁUPSKA 9 DĄBROWSKIEGO 9 PIA TKOWSKA LECHICKA SERBSKA NARAMOWICKA GDYŃSKA 9 0 BUKOWSKA SZELĄGO GNIEŹNIEŃSKA BAŁTYCKA MALWOWA ZŁOTOWSKA GRUNWALDZKA DĄBROW GŁOGOWSKA 0 SKIEGO SOLNA TOWAROWA KRÓLOWEJ JADWIGI HETMAŃSKA GARBARY ZAMENHOFA ABPA A.BARANIAKA WARSZAWSKA 9 POZNAŃSKA 9 A GŁOGOWSKA LESZCZYŃSKA OPOLSKA 0 DOLNA WILDA STAROPOLSKA A LEŚNA BOLESŁAWA KRZYWOUSTEGO A 00 CB Richard Ellis Polska

14 TRI-CITY TRI - CITY GENERAL OVERVIEW The Tri-City agglomeration is composed of Gdansk, Gdynia and Sopot that jointly host a population close to,000 residents. Tri-City remains the most important industrial, educational and cultural hub of the northern Poland. The region is now going through a transition period, with the historically strong marine industry now in recess, being increasingly replaced by the service sector as well as urban tourism and Baltic seaside leisure industry. Hotter than ever summers of the last decade play an important role in that structural shift. The residential sector in the city is booming, with second home developments being increasingly popular among Poles and other north Europeans alike. GALERIA PRZYMORZE RETAIL STOCK Tri-City retail market in 009 has seen several completions that added nearly 0,000 sq m to the modern retail stock, currently totalling to nearly 90,000 sq m of GLA in retail schemes. Current volume of stock translates into the density of 0 sq m for every,000 inhabitants and positions Tri-City among better provisioned urban centres of Poland. DLUGA STREET The high street retailing is concentrated along Dluga Street in Gdansk's Old Town, but the area is dominated by banks and service units or tourist focussed o ffer. Gdansk host the largest in Poland, internationally known seasonal market Jarm ark Dominikanski (St. Dominique s Market). In Gdynia, Swietojanska Street is the home to many luxury stores with national and international fashion retailers such as Escada, Laurel, Vero Moda, Carry, St.Emile. MORSKI PARK HANDLOWY Given the relative weakness of other forms of retailing, the demand for retail space in Tri-City's shopping centres remains robust and the market continues to develop further. 009 has seen only some minor additions to the stock, such as Fashion House Gdansk s extension and the completion of Centrum Haffnera in Sopot, which would greatly improve shopping and leisure experience in that popular seaside resort. The major project currently under construction is Morski Park Handlowy, a 0,000 sq m Liebrecht& w oo D's retail park, which completion is scheduled for H 0. Other projects, such as Mlode Miasto planned on the brownfield site of Gdansk Shipyard and Fronciere Euris Wgorze redevelopment and extension, remain on the planning stage. RETAIL RENTS The rental levels for prime units in Tri-City in modern shopping centres are at the level of EUR 0 0 /sq m/month. High street rents reach between EUR 0 /sq m/month. Rents for units in retail parks stay at EUR 0 /sq m/month. 00 CB Richard Ellis Polska

15 TRI-CITY MARKET CONTINUES TO DEVELOP ITS RETAIL OFFER SELECTED RETAIL SCHEMES IN TRI-CITY EXISTING No Project GLA (sq m) Opening Date Matarnia Retail Park Gdansk, Auchan Gdansk,00 99 Osowa Gdansk 9,00 99 Galeria Baltycka Gdansk 9, Morena Gdansk, Klif Gdynia 0,00 99 Galeria Przymorze Gdansk, Manhattan Gdansk, Alfa Centrum Gdansk, Wzgorze Gdynia 0,00 00 Fashion House Gdansk,00 00 TRI-CITY - QUICK STATS TRI-CITY PROGNOSIS FOR 00 SUPPLY UNDER CONSTRUCTION Morski Retail Park 0,000 0 DEMAND VACANCY RENTS YIELDS CB Richard Ellis Polska

16 KRAKOW KRAKOW GENERAL OVERVIEW As a major academic, cultural, and business hub of Poland with over 0,000 inhabitants, Krakow is among the largest urban centres of the country. The historical capital of Poland that escaped destructions otherwise disturbing the development of other major Polish cities, Krakow is the key sight-seeing destination of Poland, with an estimated million visitors each year, creating some outstanding opportunities for retail operators and developers alike. BONARKA FLORIANSKA STREET RETAIL STOCK Modern retail stock currently stays at,000 sq m of GLA. At 0 sq m per every,000 inhabitants, stock density remains lower than in many other leading retail locations. Shopping centre stock in Krakow has seen a considerable increase in 009 with the opening of 9,000 sq m of GLA Bonarka shopping centre. Trigranit's scheme is the largest project delivered the last year. Located at the south-eastern fringe of the city centre and in the vicinity of Krakow's main thoroughfares, Bonarka enjoys a record-breaking initial customers' interest, with some million footfall recorded within the first 0 days after its opening. Bonarka's completion created a strong competition to other major retail developments in the city, such as Galeria Krakowska (offering,000 sq m of retail space), Zakopianka (, 000 sq m), M Krakow (,00 sq m), Galeria Kazimierz (,000 sq m) and Krakow Plaza (,000 sq m). Krakow's old town, within the historical city walls, remains the city s major retail zone. Florianska and Grodzka Streets, the main connectors between Barbakan and Wawel Castle sightseeing attractions, are Krakow's prime, pedestrianized and landscaped high street s. The city centre is a location of choice for international retailers such as Max Mara, Hexeline, United Colors of Benetton, Krakowski Kredens, and Orsay among others. KING SQUARE The current retail pipeline in Krakow remains limited, with only one project King Square, a,00 sq m shopping centre under construction. S everal others, including Neinver's Futura Park (,000 sq m), remain on the planning stage. Krakow continues to offer a very good retail development potential, with current retail network being almost exclusively located in the east and south of the city while little retail provision available in its western part. RETAIL RENTS Prime retail rents for units of approximately 00 sq m within shopping centres amount to EUR 0 9 /sq m/month. Prime rents for units on the main high streets range from EUR 0 /sq m/month. 00 CB Richard Ellis Polska

17 KRAKOW CONTINUES TO OFFER GOOD RETAIL DEVELOPEMENT POTENTIAL SELECTED RETAIL SCHEMES IN KRAKOW EXISTING No Project GLA (sq m) Opening Date Bonarka Zakopianka 9,000, KRAKOW Galeria Krakowska, QUICK STATS KRAKOW PROGNOSIS FOR M Krakow,00 00 Galeria Kazimierz, Krakow Plaza, CH Czyzyny 0,00 00 Krokus,00 99 Tesco,00 99 Tesco, Solvay Park,00 00 SUPPLY DEMAND UNDER CONSTRUCTION King Square,00 00 VACANCY RENTS YIELDS KATOWICE OLSZANICKA TYCHY KATOWICE TYNIECKA BALICKA KSIĘCIA JÓZEFA OLKUSZ PASTERNAK JASNOGÓRSKA ARMII K KASZTANOWA RAJOWEJ NAWOJKI SKALA GLOGERA MICKIEWICZA 0 SŁOWACKIEGO OPOLSKA KONOPNICKIEJ AL. 9 LISTOPADA WARSZAWA PRAZMOWSKIEGO AL.POWST.ŚL. AL. 9 LISTOPADA LU BLAŃSKA B. KOMOROWSKIEGO AL. POKOJU KAMIEŃSKIEGO AL.POWST.WIELKOP MOGILSKA NOWOH UCKA BOTEWA ŁOWIŃSKIEGO UJASTEK KOCMYRZOWSKA IGOŁOMSKA PROSZOWICE RZESZÓW IGOŁOMSKA SANDOMIERZ SKOTNICKA BABIŃSKIEGO ZAWIŁA ZAKOPIAŃSKA TUROWICZA 9 WIELICKA KRAKOWSKA TARNÓW OŚWIĘCIM ZAKOPANE 00 CB Richard Ellis Polska

18 LODZ LODZ GENERAL OVERVIEW Located centrally in Poland and within two hour drive from Warsaw, Lodz has developed dynamically as the major logistics hub and a popular BPO location. With some 0,000 inhabitants Lodz is one of the largest urban centres of Poland and continues to create some significant retail opportunities. In the second half of the last decade, Lodz has seen a surge in development activity, leading to the current overheating in residential and office sectors. However, even after the completion of Manufaktura, the largest shopping centre in Poland, in terms of the stock density retail market provision remains below the average for large Polish cities. MANUFAKTURA RETAIL STOCK Lodz retail offer consists of shopping centres and two specialised projects, including the only 009 market addition of Inter IKEA's first phase IKEA store in Port Lodz retail park, the whole project to be completed by the first half of 00. With about 09,000 sq m of modern retail space (and density reaching nearly 0 sq m per,000 inhabitants) Lodz retail provision remains relatively limited in comparison to other leading Polish cities. PIOTRKOWSKA STREET Lodz retail offer is dominated either by traditional, hypermarket - anchored formats or large retail facilities with regional catchment, such as Manufaktura shopping centre and (soon) Port Lodz retail park. Manufaktura, with over 0,000 sq m of GLA, is the largest shopping centre in Poland as well as among the best and the most advanced retail developments in Europe. Offering a considerable leisure component, Manufaktura has established itself as a shopping and leisure hotspot of Lodz. Piotrkowska Street is among the most recognisable high streets of Poland. Manufaktura, Galeria Lodzka, and linking them Piotrkowska Street jointly create one of the largest shopping zones in Poland. Unfortunately, offering little competition to the modern units in terms of the standard and size, Piotrkowska Street suffers from the domination of financial and other services tenants, with little fashion and leisure / restaurant offer. PORT LODZ Pipeline in Lodz remains limited. Apart from the completion of Port Lodz, that in total will add some 00,000 sq m of GLA to the stock, there are two other major retail projects planned, but both Sukcesja (developed by Fabryka Biznesu) and Auchan shopping centres for the time being remain on the planning boards. RETAIL RENTS Prime retail rents for units of approximately 00 sq m within shopping centres range between EUR - 0 /sq m/month. Prime rents at Piotrkowska Street are in range of EUR 0 - /sq m/month. 00 CB Richard Ellis Polska

19 9 IN RECENT YEARS LODZ HAS SEEN A MAJOR SURGE IN DEVELOPMENT ACTIVITY SELECTED RETAIL SCHEMES IN LODZ EXISTING No Project GLA (sq m) Opening Date Manufaktura Galeria Lodzka 09,00, LODZ QUICK STATS LODZ PROGNOSIS FOR M Lodz, Tulipan, IKEA Port Lodz, Pasaz Lodzki, Tesco, Tesco, Carrefour 0, Carrefour, Carrefour, SUPPLY DEMAND UNDER CONSTRUCTION Port Lodz, VACANCY RENTS YIELDS GDAŃSK OKÓLNA WARSZAWA ŁOWICZ STRYKOWSKA KONIN BLASZKI ALEKSANDROWSKA SZCZECIŃSKA ZŁOTNO SZCZECIŃSKA TRAKTOROWA KONSTANTYNOWSKA MARATOŃSKA AL. WŁÓKNIARZY ZGIERSKA LIMANOWSKIEGO AL.WŁÓKNIARZY LEGIONÓW ŻEROMSKIEGO AL. POLITECHNIKI PIOTRKOWSKA PIOTRKOWSKA ŁAGIEWNICKA POMORSKA NARUTOWICZA WARSZAWSKA KILIŃSKIEGO WOJSKA POLSKIEGO KOPCIŃSKIEGO WYCIECZKOWA AL. RYDZA-ŚMIGŁEGO POMORSKA AL. PIŁSUDSKIEGO STRYKOWSKA 0 BRZEZIŃSKA PRZYBYSZEWSKIEGO POMORSKA ROKICIŃSKA BRZEZIŃSKA BYSZEWSKA WIACZYŃSKA ROKICIŃSKA RAWA MAZ. DĄBROWSKIEGO SANITARIUSZEK TOMASZÓW MAZ. RZGOWSKA ŁASKOWICE CHOCIANOWICKA PABIANICKA 9 KOLUMNY KOLUMNY SIERADZ KATOWICE 00 CB Richard Ellis Polska

20 0 SZCZECIN SZCZECIN GENERAL OVERVIEW The smallest among large Polish cities but hosting the largest seaport of Poland, Szczecin is situated in the utmost north-west part of the country on the border with Germany, only some 0 km from Berlin. After the outflow of population at the beginning of the last decade, the negative trend has been recently reversed through more active city policies, attracting more investment. There are numerous signs that at last Szczecin's retail market is taking off. The city features as a real estate hotspot and creates some good retail development opportunities. GALERIA TURZYN RETAIL STOCK Szczecin continues to boast one of the best retail development potentials among large Polish cities. Current shopping centre provision in Szczecin amounts to about 00,000 sq m of GLA, which translates into about 00 sq m per,000 people, one of the lowest retail density ratios among large Polish cities. There were no new additions to the stock in 009 and the major schemes remain,000 sq m of GLA Echo Investment's Galaxy,,000 sq m GE Real Estate' s Ster and,00 sq m Macquarie's Turzyn Gallery. The most recent market addition was,000 sq m Auchan in Kolbaskowo, completed in November 00. MAJA STREET AUCHAN KOLBASKOWO With a limited existing retail offer, Szczecin's market is expected to see a major surge in stock within the next few years. Currently there is,000 sq m under construction in two projects:,000 sq m in ECE's Galeria Kaskada and,000 sq m in Turzyn shopping centre (a project different from Macquarie's Turzyn Gallery but bearing similar name and sharing similar location) while further 9,000 sq m of modern retail space stays on the planning boards. Raiffeisen Evolution's,00 sq m Ferio shopping centre s construction in Pogodno district of Szczecin is expected to start in the spring, followed by the works commencement on Echo Investment s Astra and Mayland s Aleja Slonca, all to be completed by 0. Szczecin's prime high street is crystallizing along Maja Street and Niepodleglosci and Wyzwolenia Avenues. It stretches between Szczecin Glowny PKP railway station and a brown field site after 'Dana' factory, where its current owner JW Construction plans to develop a mix-use complex Nova Dana with retail and service component. RETAIL RENTS Prime rents for a 00 sq m fashion unit in a high quality shopping centre, such as Galaxy Centrum, stay at EUR 0 /sq m/month. The rental levels for single retail units of approximately 00 sq m, located along the main shopping streets, has seen some decline to the current EUR 0 /sq m/month in the best locations. 00 CB Richard Ellis Polska