Planned operational improvements:

• To move tenants around to create a better customer flow in the centre.
• To assess the derived effects of opening the cinema and proactively ensuring a good tenant mix on this basis.
• To change temporary leases to ordinary leases on conditions that are satisfactory to the Group.
• To carry on additional marketing and image improvement campaigns after the cinema opening.
• To boost the occupancy rate – dialogue is ongoing with potential tenants.

Galeria Tarnovia is owned by a joint venture with Heitman, and TK Development has a 30 % ownership interest. Galeria Tarnovia is impacted by a strong competitive environment in Tarnów. From 2014 to 2015 the centre recorded a drop in revenue and footfall, both figures being at index 96 in 2015 compared to 2014.

To enhance the centre and increase its competitiveness, efforts have been made to change the tenant composition, resulting in a better customer flow in the centre. This has involved the relocation of a major electronics store and the opening of concept stores operated by the Polish retail chain LPP and a store operated by SMYK, another Polish retail chain. In addition, the conversion to accommodate a cinema has been completed, allowing the cinema to open on 16 December 2016.

The effects of these initiatives are starting to emerge. In 2016 the centre recorded revenue at index 105 and footfall at index 101 compared to 2015. In December 2016 the centre recorded the highest monthly revenue and footfall figures since its opening.

Overall, the letting situation has improved significantly, with an increase in occupancy rate from last year’s 86 % to a current rate of 93 %.