G City Europe, a wholly owned subsidiary of G City (TASE: GCT), announced a significant milestone with the signing of a long-term lease agreement with the global fashion brand UNIQLO. The new deal will transform the pop-up store, first opened two years ago at the Wars Sawa Junior Center in Warsaw, into a permanent high-street location. This permanent store, covering 1,779 square meters, highlights the strength of G City Europe’s flagship property in Warsaw and UNIQLO’s confidence in Poland’s growing retail market.
UNIQLO, part of the Japanese apparel giant Fast Retailing, is a leading international brand with a strong global presence. The decision to expand its retail footprint in Warsaw demonstrates the attractiveness of G City’s premier retail location, drawing a dynamic urban crowd and solidifying the center’s reputation as a destination for international retailers.
Eshel Pesti, CEO of G City Europe, expressed excitement about the development: “We are honored that UNIQLO has chosen Wars Sawa Junior Center for its new store. Two years ago, the brand opened its first location in Poland with us. Today, with its decision to expand its retail space and introduce a high-street permanent store, it confirms that this is the ideal location for international brands attracting fans of the urban lifestyle.”
This announcement comes at a time of continued recovery and growth for G City. In its Q2 2024 financial results, G City reported a 12% increase in net operating income (NOI), excluding the impact of sold assets, reaching 438 million shekels. This performance was largely driven by a solid improvement in tenant sales and visitor traffic across its properties. The company’s cash flow from operations (FFO) also increased by 20%, underscoring its financial resilience after a challenging period.
The signing with UNIQLO further bolsters G City’s long-term strategy to focus on its core assets, particularly in key urban centers across Europe and North America. G City has been actively executing its asset realization plan, selling over 4 billion shekels worth of non-core assets since 2022, with more expected in the coming years. This strategy has already led to a slight reduction in the company’s debt ratio, which now stands at 66.3%, down from 66.6% at the end of 2023.
UNIQLO’s permanent store in Warsaw reflects not only the strength of the Wars Sawa Junior Center but also G City’s ability to attract and retain top global brands. This, combined with the company’s ongoing efforts to enhance its operational efficiency and streamline its portfolio, positions G City for continued success in the highly competitive retail property market.
Adding further confidence in the strength of G City’s European portfolio, a recent deal involving a property in Wroclaw shows the strong demand for retail assets in Poland’s growing cities. NEPI Rockcastle’s €373 million acquisition of Magnolia Park, a shopping center located outside Wroclaw’s city center, underscores the potential of retail in Poland. G City’s own Galeria Dominikanska, situated in a more central and prestigious location in Wroclaw, stands as a testament to the company’s strategic investment in high-demand areas, further reinforcing the value and potential of its European holdings.
As G City continues to build its presence in key regions like Central Europe, the successful expansion of UNIQLO in Warsaw and the rising interest in Poland’s retail market serve as a testament to the company’s strategic vision and its ability to adapt to changing market dynamics.
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