#Mapic2014 SES Spar steps up focus on refurbishment

SES Spar, the Salzburg-based shopping centre developer, is increasingly focusing on inner-city locations and refurbishment, the company’s CEO Marcus Wild told PropertyEU.

‘Refurbishment is a main focus for us in urban locations or in existing centres which we are developing into urban meeting points and experiences. An urban location doesn’t necessarily mean that it is in the centre of a city. We see broad opportunities for an urban retail experience. However, we continue to develop new inner-city locations.’

SES is currently working on a refurbishment in the Styrian capital of Graz and Wild said he saw good potential in other second-tier cities in Austria at present. ‘They are very interesting right now. We’ve had a huge success at our mall Varena in Vöcklabruck/Upper Austria, with turnover reaching €100 mln annually.'

In Bregenz, SES is working in a 50-50 joint venture together with a development company on a 15,000 m2 retail section of a 21,000 m2 urban multifunctional project. Located next to the main station, the scheme will offer offices, residential and retail and connects the festival area of the town with the inner city. The Bregenz centre is located near the Swiss-Austrian border, Wild added: 'We expect a lot of Swiss visitors.’

SES is also active in the Austrian capital where it is retail partner in an urban development scheme for a new city district. Wild: 'We are doing the whole retail zone including the shopping street which will be managed like a mall. This type of development is new for Austria.’

The first shops will be handed over in summer 2015, Wild said. In addition, SES is managing the refurbishment of a traditional shopping centre on the outskirts of Vienna which will be completely rebuilt while staying open for business. The extension will increase the centre's retail area to 48,000 m².

Wild declined to provide any names of new tenants, but said the retail project involved an investment of €100 mln. Prospects for the new centre are good, he added. ‘Manufacturing confidence has slipped a bit in recent months, but we are active in the best area in Europe. Turnover in retail is also recovering in Hungary, it’s not at a high level, but it’s steady.’

As part of the company’s strategy to create an urban experience, SES is increasingly paying attention to public spaces and activities. Examples include dedicated children’s areas and playgrounds, events and food tenants at haute cuisine level. The company is also integrating art into shopping centres with large sculptures like The Tree, a sculpture by Jonathan Borosky, near Europark. Other entertainment elements include a theatre, creating opportunities for stage events like jazz festivals, theatre productions and cabaret.

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