Atrium now focused on Poland
Retail & leisureThe market value of Atrium’s 21 income producing properties in Poland was EUR 1.5 bln, now representing 61.6 pct of its total EUR 2.5 bln income producing portfolio of 34 assets in the CEE region. Like-for-like net rental income (NRI) rose by 3 pct to EUR 64.5 mln, with growth in all markets1and a 2.4 pct increase excluding Russia. Like-for-like gross rental income from the group’s Polish assets rose to EUR 26.1 mln (H12017: EUR 25.9 mln) and like-for-like net rental income increased to EUR 25.7 mln (H1 2017: EUR 25.4 mln), despite the impact of temporary disruption and vacancies arising from the upgrade and extension work at the three flagship shopping centres in Warsaw. Around 15 pct of the Group’s total income is currently produced by assets in Warsaw. Occupancy across the 21 assets remained strong at 96.7 pct (December 31st 2017: 96.4 pct). Altogether, three major projects underway in Warsaw will create around 60,000 sqm of gla to the Group’s Polish portfolio and make a significant contribution to Atrium’s future growth and sustainability. Atrium Promenada: Stage two of the redevelopment is on track to be completed in the fourth quarter of 2018, following the first phase delivery of 7,600 sqm gla in 2016. 13,200 sqm of additional gla will be added and the common areas will be upgraded to provide double shop fronts on the first floor with a new food court and a two-level car park also being added. The full redevelopment, comprising a 47,600 sqm extension and major remodelling of the centre, is expected to be completed in 2021. The refurbishment of Atrium Targówek and its 8,600 sqm gla extension is ongoing and the main part of the work will be finished by the end of this year. Work on the redevelopment and refurbishment, of Atrium Reduta will add 5,700 sqm of new gla by the end of 2019. Warsaw’s first Cinema3D (2,700 sqm) and a modern 1,500 sqm fitness centre, which form part of the project are expected to open by the end of 2018. “Since the end of 2017 we have further progressed with our strategy of portfolio repositioning into dominant urban centres in prime locations and continued our programme of non-core asset sales, having now exited operational activities in both Hungary and Romania. As a result, over 80 pct of our portfolio by value is now located in the Czech Republic and Poland, with our portfolio also due to benefit from our redevelopment and extension programme which will create 60,000 sqm gla in total, including 26,000 sqm which will become income generating in 2018,” stated group CEO Liad Barzilai.
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