June 2014 to see retail park in Zemun - How far announced investments in shopping malls in Belgrade have got?

There has never been less money and the citizens never have enough places for shopping. Even to those who are not fashion followers find it convenient to have a shopping mall as close and as big as possible. Citizens of Belgrade will be able to buy not only famous but also new world brands on new locations. Out of couple of announcements of retail parks and shopping malls, retail facility in Zemun should be completed first.

As eKapija finds out, works are nearing an end and the first buyers are expected in June 2014.

- Works started in June this year are in line with the dynamics. The facility should be completed by New Year. We have built 16.000 square meters of office space and developed exterior some 20.000 m2. According to investor, the facility should open in July next year and some 30 leases can find a place here - Miroljub Puric from Energogroup, the main contractor, told us.

According to findings of eKapija, Belgrade could get another retail park. A foreign company which has already invested in Serbia is planning to build another retail facility in Zvezdara but until the investment is definite, they do not want to give any details in public.

Does Belgrade market need new shopping malls?

Apart from retail park One Belgrade, construction of shopping malls Delta planet, Visnjicka Plaza, Carrefour in Novi Beograd, etc. has been announced. However, economic crisis and low shopping power of citizens influenced some to delay construction.

As a real estate consultant who wanted to stay anonymous, said, the biggest problem is the decrease in shopping power so leases analyze the market in details before they opt to enter a new shopping mall.

On the other hand, CBS International thinks that retail space market in Serbia has been recording even bigger interest of local and foreign investors.

- Having in mind undeveloped stage of particularly this part of the market compared to the region as well as changes in economic aspects, investors increasingly opt for retail park concept concerning lower investment costs and shorter period of construction. Therefore, investors can offer lower rental prices and attract new brands which have not previously been present in Serbia. When it comes to shopping malls, Belgrade has only three which can be compared to the western examples - Goran Zivkovic, deputy director at CBS International, a part of CBRE group, says for eKapija.

Our collocutor, as an example of the brand interested in expansion to our market mentions H&M.

- One of the most popular fashion chains, a world brand we have been waiting for a longs time, opened its first shops in Belgrade in Delta City and Stadion which next year should see se H&M in retail parks sic as Novi Sad-based BIG CEE and Pancevo-based Aviv Park.

Zivkovic estimates that from the aspect of the location, the city center lacks modern shopping malls compared to Novi Beograd where 60% of total retail capacities of different formats are.

- Stadion shopping center in Belgrade contributed to a total offer of retail space in Belgrade now totaling 230.000 square meters in 2013 which makes 140 m2 of retail space on 1.000 citizens. Despite a significant increase, an offer is far behind regional average which totals 475 m2 on 1.000 citizens – Zivkovic explains.

Construction of shopping mall in Visnjica most likely to happen

Out of the announced investments in shopping malls, the most likely to happen is the construction of Visnjicka plaza. As the Israeli Plaza Centers representatives said for eKapija, they obtained a location licence and when they get a constriction license, they will start the construction.

- We are expecting to obtain a construction permit by the end of the year. From this point of view, we hope to open a shopping mall in the fall 2015 but it all depends on the construction license - Sagiv Meger, director at Plaza Centers for Serbia said for ekapija.

Shopping mall in Visnjicka banja, as it was announced, will occupy 48.000 m2 while the investment will reach EUR 100 mil.

Delta Planet is waiting for new legislation framework

Delta announced the construction of the Delta planet shopping mall for the beginning of 2013 but the construction was delayed.

- A location has been provided for Delta Planet. Design is in preparation and activities have been ongoing when it comes to funds provision as well as obtaining all necessary approvals and permits for the construction start. Taking into consideration announcements on changes to the Law on planning and construction, it is necessary to wait new law and bylaw solutions and its implementation. Therefore, now we cannot be certain of the moment when we will get permits – Vojislav Glavinic, General Manager at Delta Real Estate said for eKapija.

Glavinic says that all the time they have been working on renting tasks for which they hired ones Lang LaSalle (JLL).

- So far, contracts with Carrefour and Cinestar which will bring the first IMAX technology cinema to Serbia, have been signed and we are expecting more than 30 new brands which will appear at our market for the first time – our collocutor said and added that they have a strategic cooperation with Carrefour with respect to finding new locations for their facilities so a couple of locations have been under consideration.

Delta planet should occupy 200.000 m2, to have 250 shops and to total some EUR 200.000 miL. As of the moment the construction starts, the facility should be finished in 18 months.

Cooperation between Napred and Carrefour

This year, Napred planned to start construction of residential-commercial complex in Novi Beograd-based Block p 41a. However, as eKapija finds out, the company still has not found funds for this complex.

- We will have new information in a month with respect to this investment – Napred reps told us.

- The Napred 41company was set up six years ago. At that time, the construction of four towers was planned but the Austrian investors gave up. We found the new partner, Carrefour. The company is a foundation of the shopping mall because it would take some 12.000 m2 for their hypermarket. The second part would be residential and we would build with associates and when it comes to the shopping mall, we are looking for the real strategic partner – Vitomir Peric, Management Board member at Napred, said.

Shopping mall West 65 starts in a couple of years?

PSP Farman moved in the first residents of the complex in Omladinskih Brigada street in Belgrade and started preparation yo continue the complex construction. The first stage should end in two years and after that the second stage implying the tower 146 meters high with business premises and hotel suites should start.

- The second stage of the West 65 construction implies a shopping mall with a large wellness center with a pool, a hypermarket and thirty retail outlets where the most quality goods will be sold – Branko Trkulja, General Manager at Farley Investors, a company operating with PSP Farman in charge of the project, said previously for eKapija.

Mystery of the Rajiceva shopping mall

Opening of the shopping mall in Rajiceva street in the center of Belgrade is planned for 2015. At least that was what the investors , ABD, announced in May this year. However, the company still does not have the information on the facility construction start.

Block 34 on standby

The Verano company is planning to build a hotel and a shopping mall on a lot in Novi Beograd-based Block 34, near Genex tower. As eKapija finds out, the project is on standby regime since the funds have not been provided and Verano wants to finish B23 Office Park first.