Meinl European Land Continues Expansion

20. Juli 2006, 00:00

Meinl European Land Limited further strengthened its activities in Russia and acquired a shopping centre in St

Meinl European Land Limited further strengthened its activities in Russia and acquired a shopping centre in St. Petersburg.

The shopping centre "Severnij Mall" in the North of the hub of 4.1 million inhabitants is currently under construction and the first part of the centre will be opened until year-end 2006. The shopping gallery will have a total lettable area of approximately 26,000 sq. m plus a "Real" hypermarket operated by the German Metro group with around 10,000 sq. m. In addition the project, which has a land plot of 50 hectares, includes a significant land reserve for the extension of the shopping centre by a retail park.

The total investment value for the centre including the planned retail park will amount to approximately EUR 120 million. The shopping centre will generate an attractive yield of around 15 per cent.

Expansion continues in Poland as well. Meinl European Land received the legal binding building permit for the shopping centre project "Felicity" in Lublin. With a total shopping area of more than 100.000 sq. m "Felicity" will be so far the largest shopping centre in the Eastern part of Poland.

"The retail space density in this region is still relatively low", explains Francis Lustig, Speaker for Meinl European Land. "In addition we expect potential customers from the border districts in the Ukraine and Belarus." One of the anchor tenants will be Metro group with a large hypermarket. In addition Meinl European Land has firmed up the lease agreement with French-based DIY operator "Leroy Merlin". A large furniture centre is planned as well.

The total investment value in the final stage of expansion of the centre will amount to approximately EUR 135 million and the yield will be almost 10 per cent. The opening is scheduled for the third quarter of 2008.

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