Rodamco Europe N.V., the largest publicly listed property investment and management company in the retail sector in Europe, announces the delay of the opening of the Zlote Tarasy shopping centre in Warsaw by six months. However, Rodamco Europe will not suffer any direct financial consequences as a result of this delay.
ING Real Estate, the developer of the Zlote Tarasy shopping center announced today that the completion of the mixed development project (including the shopping center) has been postponed due to the decision of the provincial administration court in July this year, which repealed the main building permission. The opening has been postponed until spring 2006 from the previously announced autumn 2005.
CEO Maarten Hulshoff: ”We regret the delay in the construction of the Zlote Tarasy development project in Warsaw, but this delay will not have negative financial consequences for Rodamco Europe as we only committed ourselves to turnkey delivery and payment upon completion. We don’t carry any development risks. Rodamco Europe will carry some opportunity costs.
Rodamco Europe will acquire a 50% share of the Zlote Tarasy development project upon completion, now expected in spring 2006. Under the terms of the agreement with the development company ING Real Estate, Rodamco Europe share will amount to
approximately € 160 million.