Meinl's Manhattan project

The second largest property company listed on Vienna Stock Exchange, Meinl European Land Group, has launched a company that will be Meinl's tool on the commercial real-estate market of Central and Eastern Europe.

"From here we will be managing [property in] Poland and the Baltic states," said Ian Elliot from the board of directors at Manhattan Real Estate Management. Between November this year and January 2008, Manhattan Real Estate Management will complete developments in Toruń, Białystok, Lublin, Wrocław and Riga in Latvia. By 2010 the company expects the total value of its investments in Poland and the Baltic region to reach EUR 1.3 (zł.5.1) billion. Meinl, which was initially a coffee house in Vienna, entered the Polish market last year in the summer. Just 12 months later the operating investment of the firm amounted to EUR 325 (zł.1,276) million. Up to now the company has developed 18 investments in Poland, whose current market value is Eur 536 (zł.2,105) million. "Poland will continue to be a very important market for Meinl," said Elliot.

This year in June, Meinl bought 92.6 percent of shares in Foras Holding, a specialist in managing shopping centers in Poland that also owns three retail centers (CH Reduta, CH Targówek and CH Plejada). The total market value of the Foras investment, with a total space of 70,000 sqm, was EUR 200 (zł.785) million.

Following its strategy of acquisition, Meinl has also signed contracts for additional shopping center developments worth a total of R260 (zł.1,021) million. "We buy projects, portfolios. However, we are a long-term investor. Our aim is not to acquire real estate and sell it as soon as it is profitable," says Elliot.

Elliot said the bulk of Meinl's activities are now concentrated in Poland. In November this year the company is opening Galeria Copernikus in Toruń with a gross lettable area (GLA) of 29,074 sqm. In future the company will also launch Euromall Białystok with a GLA of 31,500 sqm, Fellin Lublin with 80,000 sqm and Idylla Wrocław with 41,999 sqm. "We are totally focused on retail property in Central and Eastern Europe. We are looking for shopping centers both in the suburbs and city centers," said Elliot.

Agnieszka Barteczko