IMMOFINANZ continues to expand its successful STOP SHOP brand of retail parks in the Adriatic region, this time focusing on Croatia, in line with its corporate strategy. According to plans, the number of STOP SHOPs in Croatia is expected to grow from the current four to over 20 locations in the next three to five years, with the completion of ongoing construction and the expansion of existing STOP SHOPs anticipated in the first half of 2022. This investment is valued at approximately 250 million euros, and STOP SHOPs will be built in collaboration with Croatian companies. The plan includes the creation of up to 5,000 jobs for the local population.
Detailed market and location analyses have suggested that there is a high demand from the local population for decentralized, local suppliers. This conclusion led to the decision to secure 22 locations in medium-sized Croatian cities where STOP SHOP retail parks would be developed.
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—- With a strong return to the trend of economic growth, as well as an increase in disposable income and consumer confidence, Croatia is emerging as a promising market. We have been investing in Croatia for many years, and one of our latest investments was entering the market with our STOP SHOP retail parks in 2018. We made this decision based on feedback we received from local communities and our tenants who wanted to expand into the Croatian market, for whom the STOP SHOP format is particularly suitable. We can attribute this to the size of the cities and the demand from the population for procuring best value for money essentials in a pleasant environment – commented Dietmar Reindl, COO of IMMOFINANZ.
High Demand for Retail Parks from Tenants and Consumers
For years, IMMOFINANZ has relied on the profitable form of retail parks that are crisis-resistant, with solid returns, and recognized the potential of such investments very early on.
– We carefully assess new locations and utilize available market capacities. Additionally, the pandemic has clearly shown us that retail parks where you can buy everyday essentials, which have very good traffic connectivity and a diverse mix of tenants, are clear winners and are highly sought after by tenants and consumers – added Reindl.
New construction locations have been acquired through successful cooperation with ENS d.o.o. The retail parks to be built at these locations will have over 190,000 square meters of rental space.
By the end of September 2021, four Croatian STOP SHOPs in Valpovo, Osijek, Ludbreg, and Našice, with a total area of 21,000 m2 were fully leased. The retail park in Ludbreg will expand by approximately 3,000 square meters, and this space, along with a new retail park of approximately 7,000 m2 in Kaštela, will open in the first half of 2022.
High ESG Standards
The construction and operation of our STOP SHOPs are based on high ESG standards. A total of 150,000 m2 of photovoltaic equipment will be installed at the locations, significantly increasing our own production of renewable energy in line with our new Net Zero Emission strategy of zero harmful emissions. In an effort to promote electro-mobility in cities, extensive electric vehicle charging stations will be made available at STOP SHOP locations. The arrangement of green areas surrounding the retail parks will focus on biodiversity and will reflect current pilot projects for utilizing service water and creating urban forests.
