• Home
• Media
• News
• 2012
• BPT’s Lithuanian Shopping Centres increase occupancy and net rental income

BPT’s Lithuanian Shopping Centres increase occupancy and net rental income

Europa Shopping Centre, Vilnius

Triggered by major new openings in 2010, the tenant mix reform gathered momentum from the beginning of 2011. The year featured a number of replacement and reconstruction projects - totally, one third of the lettable area was converted into new or upgraded shops, which are able to offer the customers an extravagant environment, top quality goods and collections, as well as the highest standard service and personalized attention.

The ground floor had been accommodating an excessive versatility of retail operations, therefore during 2010/2011, the floor was restructured by re-enforcing relevant segments. The floor is now a good destination for fast-and-daily-consumption goods and services: restaurants, bakery, coffee-shops, grocery, cosmetics, sweets, gourmet, accessories, pharmacy, optician, etc.

A number of apparel stores were opened on the second floor:  Laurel, Guess by Marciano, More&More, Ralph Lauren, Baldessarini, Otto Kern. Together with the existing Gant, Marc O'Polo, Stefanel, Samsonite, Lancel, Gerry Weber and a number of other stores, the floor now is an attractive destination for fashion shoppers.

In 2011, a number of re-arrangements were completed also on the 3rd floor of Europa. The tenant mix was strengthened by a large sportswear concept, a new 350 sqm bookstore with an integrated library and café, as well as three new shops for kids and parents and a new restaurant to replace the former concept very much in need of an upgrade.

All the afore-said functional improvements in the tenant mix shall generate an extra rental income of approx. EUR 140'000 per year. Moreover, this significant upgrade of the tenant mix resulted in annual growth of footfall (+15% in 2011 vs. 2010) and a marked upward trend in aggregate centre turnover (+12 % in 2011 vs. 2010).

BIG Shopping Centre, Klaipeda

Shopping centre BIG achieved several significant lease agreements in 2011. The most important deal was made with an existing pharmacy operator. A new agreement was signed after severe competition between the two strongest pharmacy chains in Lithuania and the result increased Shopping Centre BIG's annual income from pharmacy operations more than three times.

A similar situation took place with the optician operator, and using the same methods the annual income almost trippled.

In total Shopping Centre BIG signed new or renewed agreements in 2011 for more than 4'000 sqm - 3'000 of them stemming from new operators. The biggest vacancy, which has not been occupied for more than 3 years (750 sqm on the second floor) was in December 2011 opened as a unique youth entertainment centre. With this initiative, Shopping Centre BIG reached a record occupancy level of 98%.

Molas Shopping Centre, Kaunas

One of the most significant relettings in 2011 in shopping centre Molas, took place after tough negotiation with a well-known international shoe retailer. A new key tenant store of 450 sqm was opened in November, and for the coming years will increase rent income by 7.5% from turnover, but not less than EUR 35'000 in first trading year, EUR  37'000 in the second operating year, and the remaining period not less than EUR 42'000 per year, according to the step rent conditions in the contract valid till 2018.

In 2011 over 35 contracts (4'000 sqm) were renegotiated and prolonged with existing well known tenants as Mosaic, C&D style, Forto dvaras, Eurokos, Viva batai, Zaislų planeta, Triumph and other, which let to a 98% occupancy of the shopping centre and an expected 5% increase in the net rental income for 2012.