Finding new niches

Focus on logistics
"We have seen a reduction in opportunities for the construction of small retail facilities, such as supermarkets, for external clients. There is only enough work on this market for maybe two or three years," claims Ewa Bobkowska, the president of the board of P.A. Nova. The company is currently carrying out two projects for Kaufland and has five projects in the pipeline. In April P.A. Nova signed a sales agreement with a net value of PLN 21.9 mln to hand over a retail facility to Kaufland Polska Markety. The deal finalises a preliminary agreement concluded by the parties at the end of October 2011. The company has also been awarded a contract for the construction of a store for the Aldi chain. "We have decided to extend our operations into the logistics market because we see a niche there. We would like to be involved in the construction of smaller facilities to order, but we will also build our own halls to be leased and sold," adds Ewa Bobkowska. The company has just completed the TRW hall in Gliwice with an area of 14,400 sqm as the general contractor in a contract worth PLN 30 mln. In addition, P.A. Nova is starting the construction of an 8,000 sqm warehouse on ul. Golejowska in Rybnik, which will be leased in its entirety to Doosan Babcock Energy Polska. The value of the project is PLN 30 mln and its completion is planned for November 2013. It is also in the process of signing another contract worth PLN 4.5 mln for a similar project. Is this business profitable? "Margins on logistics facilities fluctuate at around 10 pct and are comparable to those generated by commercial facilities," stresses the head of the company.

Hotels to supplement portfolio
The company is also considering entering the economy-class hotel market. This would be dependent on finding an operator to cooperate with. "We would like to build hotels offering 90-120 beds in attractive tourist locations in towns with around 50,000 inhabitants. They would be three-star hotels," explains Ewa Bobkowska. P.A. Nova has already come up with an idea for developing a site in southern Poland. "We have a plot in Przemyśl, which could be used for the construction of a hotel. We are currently planning a residential project there which involves the construction of four buildings - a total of a hundred apartments. However, provided there is some interest from an operator, the plans could be modified and a hotel could be included in the project," claims the head of the company. The Gliwice-based developer is also not withdrawing from the retail market. The company will soon apply for a building permit for the Galeria Galena shopping centre in Jaworzno. The mall is to be built over a 6.2 ha plot on ul. Grunwaldzka. "We are in negotiations with tenants, but we cannot disclose any more information at this time," says Ewa Bobkowska. Galeria Galena will have a leasable area of 46,500 sqm and is scheduled for completion in 2015. The opening of a retail park in Myszków, a PLN 7 mln investment, is to take place a little sooner, by September 15th. The 2,000 sqm centre is fully leased. The company's plans also involve the construction of retail parks in Zamość and Kamienna Góra. The former project has undergone some modifications. "We planned to build the Galeria Zamoyska mall in Zamość but our competitors got there faster. A retail park is to be built on the site now, the plans for which are currently being drawn up," adds Ewa Bobkowska. Another retail park is also waiting for its turn in Gorlice, which could have an area of app. 8,000-10,000 sqm. The president of P.A. Nova also emphasises that the company is not planning to sell its malls at this time. The first such sale, it seems, could only take place in 2014 at the earliest - this would be Galeria Sanowa in Przemyśl. A few months ago the company established its own management subsidiary to deal with the administration and lease of seven of its own shopping centres: a retail and service facility in Racibórz, a mall in Andrychów, a retail park in Chorzów, Galeria Sanowa in Przemyśl, a mall in Stalowa Wola, Galeria Miodowa in Kluczbork and Galeria Odrzańskie Ogrody in Kędzierzyn-Koźle. The combined leasable area of these centres amounts to 61,900 sqm and is to increase to 100,000 sqm by the end of 2015. The company forecasts that its 2013 revenue should reach app. PLN 180 mln, PLN 40 mln of which will come from rents.