During press breakfast, held on 26 March this year, the representatives of Capital Park Group informed that the company is going to a new business model. According to it, also the approach to constructed office investments and their tenants will change.
The new strategy evolves from the approach typical for developer companies, that is, “to purchase, to build and to sell.” (...) In this model, the tenants are generally not cared about. Unfortunately, this is noticeable not only in our buildings, but also in the buildings made by our competition, informed Jan Motz, the president of Capital Park, at the meeting. Our strategy involves changing the approach to the objects which we build. We rely on active management of them over a long period and keeping the real estate in closed funds, continued the president of the Group.
The representatives of Capital Park Group, present at the meeting, explained that the decision to change the approach was caused, among others, by the decrease in revenue from lease agreements, related to the ending of the agreements with large tenants last year. The highest revenue decreases were noted in two office blocks in the capital city: the building Alfa, located on Aleje Jerozolimskie Street, and the building on Sobieskiego Street. They amounted to -2.3 million zloty and -0.7 million zloty, respectively.
The Group is working on rebuilding the revenues and has already signed lease agreements for over 4600 sq. m, including the agreement with Provident for 2100 sq. m and with Hebe for 1800 sq. m. At the same time, the company is implementing the new system of taking care of the tenants, the aim of which is to automate and improve the servicing processes. We undertake the huge effort now to implement the system of customer care, ensured Jan Metz during the meeting. The company hopes that the new approach will help in the future to keep their customers and will prevent it from losing its tenants, as it happened last year.
Instead of selling their office blocks, Capital Park considers launching closed investment fund of office assets or including office assets in the high-street fund created last year. This is an alternative way of procuring funds for investments. In 2013, Capital Park sold 85% certificates of the fund in the private offer, gaining 63.7 million gross. So far, only commercial real estate, with a value of ca. 200 million zloty, is included in the dividend fund Real Estate Income Assets FIZ AN.
The entire real estate holdings of Grupa Capital Park included 76 projects located in 39 cities throughout the country. The company concentrates its activity primarily on the market in Warsaw. Here the 3 largest investments of the company are located, that is, Eurocentrum Office Complex (42 337 sq. m), Royal Wilanów (36 707 sq. m) and Art Norblin (64 164 sq. m).