Asset management at its finest. Orange Plaza Financial Center serves as an example of how to adapt to the ever changing business requirements, typical for retail and office space rental.
1 700 sqm
1 631 sqm
3 299 sqm
- emerged in 2000 as a 4-storey shopping centre, with the size of ca. 2 500 sqm GLA
- located in the very heart of the city (Piotrkowska St. and Piłsudskiego Ave. junction)
- one of the most modern commercial buildings in Lodz at the time
- direct competition from Galeria Lodzka, a big shopping centre opened in 2005 and located in close proximity
- tenants vacating and consecutive difficulties in finding new occupiers
- previous tenant-mix strategy required cutting lease rate, rendering it unprofitable
- property repositioning – shopping mall turned into an office building
- maximum use of the existing facilities which allowed to minimise capital expenditure
- new tenant-mix strategy and re-leasing banks/financial services/insurance companies
- the building became 100% leased within less than 12 months and continues to be up to this date
- 5+ year lease deals acquired on more than 50% of the gross leasable area
- 90% of the tenants are reputable companies (blue chip) from the financial and insurance sector
From diary of the asset manager
Shopping mall turned into fully leased office building
Sometimes managing real estate assets feels like a long journey: seemingly unvarying but, upon closer inspection, constantly changing, making you adapt to new climates. The story of Orange Plaza Financial Center captures perfectly our skill at managing an asset on a highly changeable market.
In case of Orange Plaza we were entrusted with the management of repositioning process. This includes change strategy to Financial Plaza, product re-definition, obtaining the permits and re-commercialization with a completely new tenant–mix . Finally we were also hired as an asset manager and property manager. In the then-economically struggling city of Lodz(whose name translates into English as “boat”), it took a fair amount of courage and business insight to catch the wind in your sails…
Set sails to commerce!
Our goal was to integrate the project seamlessly into Lodz’s shifting landscape. “Polish Manchester”, as it is commonly called, was still recovering from the decline of the textile industry, following the political transformation of 1989. The turn of the century, however, saw a slow re-emergence of commerce. Being responsible for exploring new investment opportunities, we chose to draw upon what is probably Lodz’s most distinctive hallmark – Piotrkowska Street. As it turned out, the decision paid off!
Uncork the champagne! 100% lease for the first time!
Orange Plaza, located at the junction of the two main communication arteries in Lodz, emerged as a 4-storey shopping mall. The property’s strengths lay in its perfect location, respectful design, innovative utilities and exceptional standards at the time. In 2000 Orange Plaza was one of the most modern commercial buildings in Lodz, offering suspended ceilings, access control and air conditioning, among other things.
Course change: financial and insurance sectors
Six years later Orange Plaza became Orange Plaza Financial Center. The decision to shift from a boutique shopping mall to an office building with retail functions stemmed from two major factors. Firstly, the services sector began its triumphant march towards the city. Secondly, Galeria Lodzka – one of the first big shopping centers in Lodz – started to dominate the local retail market.
Instead of pursuing an unprofitable tenant-mix strategy and cutting lease rates, we decided to make the most of Orange Plaza’s qualities and its direct proximity to excellent administrative, commercial and hotel infrastructure. The building was reborn thanks to Orange Plaza’s functional arrangement, including mechanical ventilation, full ICT wiring installation, optical fibre technology and the addition of skylights to the upper floor.
Our course is firm, commercial viability is secured!
The refurbished Orange Plaza makes for a perfect location for offices, banks, and financial services.To date, our list of tenants includes such renowned brands as Allianz Bank, Allianz Insurance, AXA Insurance, BOŚ Bank, and Getin Bank.
Orange Plaza Financial Center
|2000||The building is operational|
|2001||Uncork the champagne! 100% lease for the first time!|
|2005||Average lease rates start to drop. Time to take evasive action!|
|2006||Course change: financial and insurance sectors|
|2007||New goods have arrived: conversion of retail space into office use with mechanical ventilation, full ICT wiring installation, optical fibre technology and the addition of skylights|
|2008 -||Our course is steady, commercial viability is secured!|