Von der Heyden goes to Szczecin

Netherlands-based developer Von der Heyden Group signed a letter of intent last week with Szczecin city authorities to build an office project on plac Solidarności in Szczecin. Sven von der Heyden, the developer's managing director, said the Szczecin Financial Centre would cost an estimated $40 million-$50 million. Von der Heyden Group and the city of Szczecin, which will contribute 11,000 square meters of land to the project, will set up a special-purpose vehicle called Szczecińskie Centrum Finansowe (SCF) to build the venture.

The development's initial plans call for a 25,000-square-meter office project built according to pre-World War II blueprints. "It won't be another steel-and-glass project, its facade will be reminiscent of pre-war architecture," von der Heyden said. He added that the scheme might be divided into two stages, depending on market conditions. The developer hopes to receive the city's conditions for construction (WZiZT) within five months and sign a final contract by the end of the year. "Provided everything goes smoothly, we should obtain a construction permit in mid-2003 and start digging in fall-winter 2003," he said. "We already have some interested parties, including two banks." Poland's seventh-largest city, Szczecin's harbor, shipyard and proximity to Germany give it good growth prospects.

But according to Jeroen van der Toolen, deputy managing director of property consultancy DTZ Zadelhoff Tie Leung, secondary cities are a dangerous bet for developers due to low demand for office space. "(The demand) in secondary cities is not even 20% of what it is in Warsaw," he said, adding that all investments bigger than 5,000-7,000 square meters are risky.