Union Investment Real Estate GmbH sees strong appreciation potential in its €6 billion portfolio of shopping centers and plans to make substantial funds available for expansion, modification and upgrading over the next two years. A corresponding statement was made by Volker Noack, a member of the management team, when announcing comprehensive modernization work to be carried out at the 3 Stawy shopping center in Katowice, Poland.
Work is due to commence in April. Planned in conjunction with the long-serving center manager, the measures will help to underpin generation of healthy income by the 1999-built shopping center in the future. The total cost of the measures, which will be completed by September, amounts to around €3 million. In addition to improving the lighting and refurbishing sections of the ceiling panels, the modernization comprises replacement and renewal of the mall’s flooring. As part of the work, three new rental units with approximately 300 m² of space will be created and the food court and entrance zone remodeled. "Overall, the work will help give the center a more contemporary appearance, with an improved visitor experience translating into customers staying longer," said Volker Noack.
Comprising approximately 37,200 m² of retail space, the shopping center has been part of the portfolio of open-ended real estate fund UniImmo: Global since 2008. By agreeing lease extensions last year ahead of expiry with Real and H&M, to 2026 and 2021 respectively, Union Investment has secured the long-term presence of two anchor tenants. With the exception of a few sections, the property has been fully let since acquisition. At the same time as this modernization work is taking place, Union Investment is preparing to add a multi-storey car park to its Manufaktura shopping center in Łódź. Construction will commence in April 2014 and is expected to last around six months. Manufaktura has been part of the portfolio of sister fund UniImmo: Deutschland since 2012. In the year it was acquired, it received the Eurobuild Award for the Best Investment in Central and Eastern Europe.
Source: Union Investment
