Taking aAim at Poland

The investment fund has teamed up with Donaldsons Europe, a real-estate consultant and retail asset manager, to acquire several more shopping centers in the region.

At present six transactions are being discussed and the next one will be announced before Christmas. In total, aAIM plans to build a EUR 1 (zł.3.9) billion commercial property portfolio in Central and Eastern Europe over the next two years.

After three years in the UK market, the company is now looking for further opportunities in Europe.

"The risks previously associated with investing in Eastern Europe have largely been mitigated with accession into the EU," says Robert Whitton, chief executive of aAIM. "The investors' appetite for Poland and other markets in this part of the continent is very strong. What attracts us most to the market is that there is no shortage of stock."

"We look at opportunities that are available either on the market or off market where, for example, we have a good relationship with an owner. As a result we will find the best product that is appropriate for us," says Stuart Cunliffe, a partner from Donaldsons Europe. Retail is primarily our target and we will be able to pay a better price than other buyers."

The company is targeting smaller cities, such as Konin, which would probably not sustain two shopping centers. The company's strategy, adopted from the UK market, means that it buys the prime center in a particular town so that barriers to entry are restricted. The shopping center management plans allow for expansion in case the catchment area expands.

AW