Germany's ECE pulls in horns amid crisis, eyes east European opportunities

German shopping centre specialist ECE has scaled down project development to weather the current financial market storm. But it sees potential next year in Poland and the Czech Republic and is positioning to take advantage of the upswing when it arrives. "We want to be positioned so that when the market gets going, we can jump in and start developing," CEO Alexander Otto told journalists at the European annual conference of the International Council of Shopping Centers in Barcelona last week. But the sticking point remains the lack of lending from dried-up financial markets. Chief Investment Officer Wilhem Wellner added, "The further away from home, the harder it is to get liquidity; the harder-hit the economy, the tougher to get liquidity." Privately-held mall developer and manager ECE , buys land with its own capital, placing projects in the market when construction begins. The current hottest item in its pipeline is a development in Szczecin, Poland, some 15 minutes from the German border. The centre will have some 140 shops over 42,000 sq.m. on three levels with parking. "In five to 10 years there will be tremendous demand, the middle classes are growing," Otto said. (Full story to be published in Property Investor Europe 119 on Monday 4 May)