KPP Retail buys land for retail schemes in Poland

Keen Property Partners Retail (KPP Retail), a newly created shopping centre investor and developer active in the Polish market, has secured several land plots for the construction of new retail centres in the country, says managing director Richard Keen. The acquisition follows hard on the heels of KPP Retail's purchase last week of Park Handlowy Eden in Zgorzelec and Centrum Handlowe Graf in Chelm, Eastern Poland for EUR 24 mln.

The company is targeting the development of retail schemes ranging from 4,000 m² to 50,000 m². Keen told PropertyEU that KPP Retail focuses on retail development in areas 'where residents have not previously had any access to such facilities.' The firm is currently developing or managing a retail portfolio of 150,000 m² in the country, including its landmark Galeria Victoria project in Walbrzych, Galeria M in Bialystok and Galleria Sandomierz.

'Galeria Victoria will be the first modern retail, entertainment, residential and hotel complex in Walbrzych and the surrounding region, bringing also the first multiplex cinema,' he added. The project was designed by award-winning architect Chapman Taylor.

Keen points out that KPP has already secured financing from private investors for its projects. He says that the Polish retail sector is performing well due to undersupply, but the development market has started feeling the impact of the lack of liquidity in the credit markets.

'Developers will be forced to consolidate and concentrate their efforts on the most lucrative investments. Ultimately, only the most financially sound projects will receive financing, as the banks look for risk aversion,' Keen said. 'Developers may have to downsize their portfolio of projects in order to raise capital,' he concluded.