Three parties are bidding to join UK developer Chelverton in its venture to build a major shopping centre in Katowice, Szeczecin in Poland.
It is understood that the Central European Retail Property Fund, sponsored by French developer Bouygues, US investment bank Lehman Brothers and Jones Lang LaSalle Corporate Finance, is one of the parties in negotiations.
Chelverton’s managing director Matthew Cartisser also said that detailed discussions are under way for partners in other joint ventures elsewhere in Poland, and also in Spain.
Cartisser added that the company has elected to replace Lend Lease’s funding on a country-by-country basis rather than a direct overall replacement.
Australia’s Lend Lease recently decided to opt out of its agreement to back Chelverton in its European development programme. The developer has been looking to replace Lend Lease’s 50% stake in the company since March.
In the UK, Chelverton has found an equity partner to continue its funding programme.
Birmingham-based Richardson Developments and Carillion Developments will inject around £40m to continue work on the UK retail schemes.
Richardson director Lee Richardson said: “There are around 15 schemes up and down the country and any future schemes will be part of the jv.
“Retail has been good for us – it’s one of the better sectors for profit margins.” he added.
According to Cartisser: “We will be setting up a new joint venture company with Richardson Development. It will be a 50/50 jv and further capital will be procured from the open market.”
The UK development programme is around £400m spread across England and Wales. It is understood that Chelverton has drawn up a list of which schemes that Richardson will be involved in. Chelverton is also seeking to raise more capital for its schemes through banks.
