Planned operational improvements:
Galeria Tarnovia is owned through a joint venture with Heitman, and TK Development's ownership interest is 30%. Galeria Tarnovia is faced with a strong competitive environment in Tarnów. In an effort to upgrade the centre and bolster its competitive position, the tenant composition has been changed, which has helped increase the footfall. In addition, a cinema opened in December 2016, and several new tenants have moved in, significantly improving the centre’s overall occupancy rate.
The effects of these measures are beginning to filter through. The revenue index for 2016 was 105 relative to 2015, and the footfall index was 101. December 2016 saw the highest revenue and the largest number of visitors in any one month since the centre opened. The positive trend has continued into 2017, and the revenue index for the first few months of 2017 was 125 relative to the same period of 2016, while the footfall index was 124.
In connection with a refinancing of the centre in 2016, the joint venture raised a mezzanine loan. The loan agreement contains a number of covenants to be met at specific intervals in order for the loan to be upheld. In order for the agreed covenants to be met also going forward, the occupancy rate needs to increase even further.