Kram Investment is entering the Polish commercial real estate market, bringing innovations to the sector, including plans for fully eco-friendly retail parks. The company will initially focus on advanced projects using traditional technologies. To support these plans, it has secured several locations for its investments and intends to begin construction of its first properties in the first half of 2025.
“We have very ambitious plans. Ultimately, we want to introduce eco-friendly retail parks to the Polish market, using solutions applied in Western Europe. These facilities will be built with wood-and-steel prefabricates and equipped with photovoltaic installations, mini wind turbines, and water retention systems. We are preparing for these investments, but due to the scale, it’s a plan for several years ahead. For now, we are focusing on a few projects using traditional technologies, most of which already have tenant agreements in place,” said Jerzy Maliszewski, CEO of Kram Investment.
In this initial phase, the company plans to build several small retail parks annually, each with an area of 4,000-6,000 m². The first projects will begin in spring 2025, with construction taking approximately 18 months. Some of the properties already have valid building permits and are largely pre-leased. Kram Investment aims to sell fully-leased properties within two years of commencing construction.
Alongside its first projects, the company is preparing documentation for future investments to ensure a continuous development pipeline in the coming years.
“We are looking for plots in towns with about 10,000 residents. Our strategy is to optimally utilize our available capital, which for now will cover only part of the investments. We are also considering a bond issuance,” Maliszewski added.
In the future, Kram Investment aims to stand out by developing large, zero-emission retail parks exceeding 10,000 m². The company anticipates that declining costs of modern technologies and favorable financing conditions for ESG-compliant investments will reduce project expenses and increase profitability.
“We have identified several locations for such facilities, which we intend to keep as company assets and generate revenue from. We believe that eco-friendly solutions, despite higher initial costs, will deliver long-term benefits for investors, local communities, and the environment,” Maliszewski emphasized.
Currently, Kram Investment is collaborating with CBRE, which supports the commercialization process and lease agreement verification. The company also works with renowned design studios specializing in retail park development. Preliminary discussions with international investment funds indicate strong interest in this market segment.
“Retail parks are one of the fastest-growing segments in Poland’s commercial real estate market. This is driven by positive consumer reception of new investments, which in turn fuels strong interest from retailers in new locations. The key factor is the retail park’s location, which must offer sufficient traffic potential,” commented Mariusz Majkowski of CBRE.
According to a CBRE report, since the beginning of 2024, 37 new retail properties have been completed in Poland, and 12 have been expanded. The retail park segment focuses on developing facilities in smaller towns, which account for 28% of total supply. From January to September, Poland’s retail space grew by 337,100 m², with 588,100 m² still under construction, including four shopping centers exceeding 10,000 m².
Source: Manager Plus
