DTZ: 40% of Polish malls free of debt

Some 40 percent of shopping centers in Poland (out of the 114 schemes analyzed) have no mortgage loans encumbering them. These are usually properties held by large retail operators or investment funds with low-risk profile and long-term investment horizon, according to a recent DTZ report. These companies have easy access to cheap financing and prefer not to use bank loans. Largest mortgaged shopping malls are usually held by funds with shorter investment horizon and higher risk-profile. The report also stated that banks offer lower interest rents for financing retail schemes than for other commercial real estate, due to the lower risk profile of retail schemes in Poland.