Galeria Sandecja, Nowy Sącz

Nowy Sącz, Poland

Planned operational measures:

  • Retain a high occupancy rate.
  • Change temporary leases to ordinary leases on terms and conditions that are satisfactory to the Group.
  • Optimise the tenant mix by placing traditional tenants on the ground floor.
  • Upgrade the first floor with, i.a., discount stores offering a wide range of low-price products.

Having been strongly affected for a while by a competing centre that opened in autumn 2013, Galeria Sandecja is once again rallying. Various initiatives implemented in 2015, including efforts to create a strong mix of tenants on the ground floor and upgrade the first floor, helped stop the negative trend in revenue and footfall in early 2016. The revenue index for 2016 was 114 relative to 2015, and the footfall index was 101. The revenue index for 2017 to date is 112 relative to the same period of 2016, and the footfall index is 102.

In light of the improved situation, a clear letting strategy for the next year has been defined with initial focus on converting short-term leases into ordinary leases with long non-cancellable periods. The process is ongoing, and several short-term leases have already been converted into ordinary leases. At the same time, the centre’s food court has been upgraded, and there are plans to move a few tenants around and expand a number of units. The occupancy rate has increased to 96%.

These measures are essential elements of the long-term plan for the centre, which sets out to restore satisfactory operational results within the next few years and thus enable the centre to fetch a satisfactory price in a potential sale.