Construction of major shopping centres in Presov slowed down

2010-02-19

Four major shopping and entertainment centres in Presov, north-east Slovakia, which were scheduled to have been running for two years now and worth together “tens of millions of euros”, have not even started construction and some of them might be totally cancelled. The reason for the slowdown was the decline in the projects’ value due to pressures from future tenants for lower rents (see the news brief Rents in Slovak shopping centres to lower? to find more detailed information on that topic) and tougher lending conditions introduced by banks.
The largest investment worth €26m, planned by the Dutch company Multi Development for Presov was the Forum project. The project was to consist of a three-floor complex with retail areas, and leisure and entertainment facilities. It has not been revealed if the company would go ahead with the project. However, it only has one year to start the construction work, or else it will lose the land. The project Arkadia of the developer SCPO was planned to be finalised two years ago in the town’s centre. There is no information about the future of investment; however, the developer is believed to have abandoned the project completely. In turn, Corso, a project that was to consist of retail space, a sports area and children’s playgrounds financed by J&T in the Sekcov district of Presov, is being re-evaluated.
However, the construction of the Solivaria project, that was to have been finished several years ago by the ConvergenCe Capital development company, will probably commence in 2010.

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