Djura Stanic, chairman of Managing Board of BlackOak Developments - EUR 40 million investment in Fashion Park Outlet Center in Indjija, 1,000 new jobs

(Djura Stanic)

Although they share the destiny of the rest of the economy sector and operate in the conditions of an economic crisis for a long time now, the number of visitors to outlet centers in Europe has been increased by 70%, whereas the sales per square meter of retail facilities have grown by 50%. Also, the capacity of existing stores in outlet centers has been boosted by 30%. However, unlike other European countries, Serbia has only three outlet centers, all of which are situated in Belgrade.

For that reason, the announcement of an investment by BlackOak Developments and its British partner - GVA Outlets, in, as they say, the first real outlet center in Serbia, has been received with great delight. For a start, this project in Indjija will span 15,000 square meters. The retail space will later be expanded by another 5,000 square meters, which will be opened in 2014, whereas additional 10,000 square meters of retail space should be finished until the end of 2016.

Since the opening of this outlet center gathering about 70 retailers has been scheduled for 1 March 2012, Chairman of Black Oak Developments' Managing Board Djura Stanic speaks to eKapija about whether the opening date is too early, brands that have confirmed their arrival, and the plan to hire as many as 1,000 people.

eKapija: How is the construction of Fashion Park Outlet Center going?

- The construction of Fashion Park Outlet Center is planned to be carried out in three phases, on an area spanning a total of 30,000 square meters, and we are currently finishing the construction works from the first phase. Everything we planned to do in this phase of works will be completed until the year's end, and that is a 15,000-square-meter space with about 70 retail facilities. We will also finish the works on the construction of a parking lot, which will be big enough for about 2,000 cars. In this way we will make it possible for our tenants to take the keys to their stores as early as in January and start preparing for the opening scheduled for March 2012.

(part of the future outlet center)

Immediately after completing the first phase of works and opening the outlet center, we will continue to work on further development and expansion of Fashion Park Outlet Center.

eKapija: That means that, despite the crisis and reduced investments, the first day of March 2012 remains the opening date?

- Thanks to excellent cooperation and great engagement of all those involved in this project, we will manage to finish all the works on schedule. However, Fashion Park Outlet Center will be opened a bit later, on 22 March 2012.

eKapija: About 70 brands have announced their arrival. Has any of these brands given up that idea in the meantime, due to unfavorable economic environment?

- Although both global and local economic conditions have been very unfavorable for almost any business over the last two years, we are satisfied with the interest expressed by tenants. This segment of operations of the Indjija-based outlet center develops well, and the list of tenants and the layout of stores are in accordance with international standards. A tenancy agreement has already been signed by some of the world's most significant trademarks: Tommy Hilfiger, Miss Sixty, Replay, Nike, Timberland, Guess, Adidas, Converse, Bata, Levi’s, Movem-Hugo Boss, Ecco Shoes, Burlington, Piquadro, 7Camicie, Lisca, Skechers, East Pack, Office Shoes, Time Out, XYZ with the entire assortment of brands, SPORTINA Outlet, and many others. These brands already operate in the Serbian market, and they will now have a chance to present their offer in the first real outlet center that is built in accordance with international standards.

eKapija: Since Fashion Park Outlet Center is supposed to employ as many as about 1,000 people, have you been granted any incentives by the local or national government?

- By investing in this project, BlackOak Developments creates a need for a large number of jobs. The world-famous brands that are going to be tenants in this outlet center will have a direct need for hiring a big number of clerks, so that the total number of workers is expected to reach 1,000 upon the completion of the project. Of course, the biggest number of these workers will be from the territory of the municipality of Indjija, of which quick and efficient administration enabled the implementation of this project on schedule.

eKapija: Which are the companies in charge of the construction of this complex? Are the investors satisfied with the services provided by our construction and other subcontractors?

- The project investor is the company BlackOak Developments, and the British company GVA Grimley, one of the most significant outlet operators in Europe, is in charge of the outlet center management. The total amount of investments in Fashion Park Outlet Center is EUR 40 million. The main designer and contractor is EnergoGroup, one of the leading engineering and construction companies in Serbia. Investors are very satisfied with the speed of the execution of works and the way in which the contractor implements the idea to create a magnificent outdoor retail space in Indjija, which is modeled after shopping streets in Italian cities.

Jelena Djelic