"Property Watch": Step by step, Eurocentrum prepares for tenants

Portuguese-controlled BIG Bank Gdański is likely to become sole office space occupant of the Eurocentrum project's first phase, according to a source close to the bank. "It's one of the serious options the bank considers," said the source, who asked not to be named. Representatives of the developer refused to comment on the bank but admitted that a financial institution is closely looking at the project. The first phase of Eurocentrum, an $80 million development by Turkey's 8 Stars, will mark its soft opening (the point when the interior needs finishing work and the building is almost ready for occupation) this Wednesday, a month later than originally planned. The 12,500-square-meter first phase of Eurocentrum, which started in January 2000, will have 20 above-ground floors, out of which three are devoted to retail. Construction work on the 320-room Crowne Plaza hotel should start in mid-June this year, three months after originally planned. The four-star hotel, which will be operated by U.S.-headquartered Six Continents Hotels, is slated for completion by the end of 2003 and will host conference facilities, a casino, a swimming pool and a beauty parlor. According to the plans, 8 Star intends to build three more 12,500-square-meter office blocks but timing depends on market conditions.

"Considering the difficulties in the market, and the supply available, we decided to complete one of the buildings, which was more reasonable than to build the whole (complex) at once, which was originally planned," said Cihat Kilic, board member of 8 Star. He added that the firm could start with the next phase when the first one is at least 80% leased. The construction of other blocks should take no longer than 12 months due to common parking facilities for 800 cars and the completed ground zero stage for all four office buildings. According to Alan Colquhoun, managing director of DTZ Polska property consultancy, building specifications include VAV air conditioning (modern air conditioning including ventilation), suspended ceilings and raised floors. Provided that quality materials are being used, it can be qualified as class A project, he said, indicating that it falls into the category of modern office building. "(It's) good edge of town location on a major radial route ... and technical specs appear good on paper," he said. Asking rent in Eurocentrum runs at $20 per square meter, plus an additional service charge at $4.50 per square meter.

Facts and figures Eurocentrum was designed by Boyout Architectural Co. and Plan Design Co., both Turkey-based. The developer company 8 Star comprises of several construction and developer firms from Turkey, including Yenigun Group of Companies, Usluel Energy Installations, Bogazici Investments as well as Can Group. Sabri Bekdas, developer of Reform Plaza and Reform Center on Warsaw's Aleje Jerozolimskie, holds a 20% stake in the venture following contribution of the land for Eurocentrum. Colquhoun said that the 8 Star may have been perceived as over-ambitious in the beginning because of initial plans to build all towers at once and an association with Reform Plaza and Reform Center - projects that face uncertain futures. "Now that it's phased and the deal struck with the hotel tower and that design specifications are clearly much better, I think the project is being perceived fairly positively," he added.

In brief: - Spain-based Zara, a clothing retail chain, signed a 1,800-square-meter lease agreement in Kraków Plaza, located on Aleja Pokoju in Kraków earlier in May. The 31,300-square-meter retail and entertainment center, developed by the Netherlands-based Plaza Centers, is currently 97% leased. - Colliers International, Canada's property consultancy, reported 12,500 square meters of transacted office space in the first four months of 2002, most of which were tenant representation deals. Major transactions included: Unilever (5,400 square meters), Avon (nine deals totaling 2,522 square meters), TGC (1,500 square meters), Raiffeisen (four deals of 1,005 square meters), Dupont (1,068 square meters), Sara Lee (600 square meters), Heinz (500 square meters). - Skandinavian's hotel chain operator Radisson SAS Hotel & Resorts completed its 162-room hotel on ulica Purkyniego in Wrocław's downtown in May. It's the second Radisson hotel in Poland, after the first one opened Szczecin 10 years ago. This year, the chain is also planning to open in Warsaw. Hotels in Kraków and Katowice are slated for completion in 2003.