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London-based developer Helical Bar is joining forces with Scottish investment manager Standard Life Investments to develop a 66,000 m² retail park and shopping centre in the southern Polish city of Gliwice.

Construction of the retail development has already commenced with completion due in October 2012. It will be funded by a combination of a EUR 72 mln development loan from Aareal Bank and EUR 40 mln in cash from the joint venture partners.

Helical is providing EUR 4 mln (10%), retaining a 37.5% equity stake in the joint venture. Standard Life Investment's institutional client will acquire Helical's equity stake, and that of the local management team (12.5%), two years after completion of building works for a sum reflecting their share of the value of the development.

The development will comprise a 28,000 m² shopping centre anchored by a 10,800 m² Tesco hypermarket as well as a 38,000 m² retail park including a 9,500 m² Castorama DIY store. The scheme is currently 51% pre-let to Tesco, Castorama, H&M, and others, with terms agreed on a further 12%.

Gerald Kaye, development director at Helical said: ‘This deal will see the return of most of our current equity invested - around £16 mln cash - for investment elsewhere within the group and reduces our current stock levels by some £43 mln (gross). We expect it will provide us with a good development profit at our planned exit from the scheme in 2014/2015.’