The big store networks could become owners of retail parks this year, although 90% of the stores used to settle for a tenant status. The lack of cash affecting real estate developers could turn retailers into co-owners of such locations.
"In the current economic context, the biggest problem we see on the market is the lack of financing for new shopping centres and retail parks. We adjusted to the market conditions and have chosen mostly rented locations over the last few years. However, with many real estate developers lacking the cash for projects at this point, I think we will be able to increase the number of locations our company owns by co-financing retail parks," Isabelle Pleska, general manager of Bricostore Romania said, adding that loans are now easier to obtain by retailers than by real estate developers.
Bricostore's expansion strategy in Romania has targeted locations in retail parks from the start, and now seven of the thirteen operational stores of the chain are located in rented space.
The year 2008 was the first year when the company expanded only in rented locations in Romania, by opening five stores in retail parks outside Bucharest.
This year, however, Bricostore will get one more location of its own, a 4,000-5,000 square metre space in the retail park in Calarasi developed by the Penescu brothers, the shareholders of the Pic hypermarket network. Bricostore's investment in Calarasi can be estimated at 10 million euros.
"It is true that borrowing costs have risen, but to us, developing our own locations remains cheaper than renting them," Pleska explained.
Bricostore Romania has worked with BRD and Bancpost for its network expansion plans, the retailer has said.
Bricostore is the second leading player in the local DIY retail, after German company Praktiker.
The French retailer last year posted 20%
