BERLIN-Some 48% of malls in Germany need revitalization in thenext few years, says a new study by international shopping centerspecialist Sonae Sierra and Ludwigsburg-based GfMA. Based ona total of 414 centers, this encompasses 199 properties, 56 millionsquare feet, and will require investments of $7.2 billion to $10.8billion to realize.

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The two firms said that measured by the number of residents permall, the greatest need for revitalization exists in east Germany,while there is hardly any need in the states of Saarland, Hesse,Thuringia, Bremen and Hamburg. Some 55% of shopping centers needingupgrade are in small and medium-sized towns, while those located inlarge areas comprise some 20%. Small and medium sized centers insuburbs and greenfield sites are most affected. Better placed inthe market are large city centre and cross-regional sites.

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Sonae Sierra aims to expand its services to include shoppingcenter revitalization for third parties. “There is a pent-up demandfor investment in revitalizing shopping centers,” said Germanmanaging director Thomas Binder. “The need for modernization ishuge, but many things delay it in practice. A low level ofawareness, but also a lack of financial capacity, deficientknow-how or unfavorable ownership conditions are reasons for notfollowing through.”

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Top of the list for refurbishment are centers owned by overseasinvestors (20.6%), followed by sites owned by closed investmentfunds. Sonae Sierra and GfMA (Gesellschaft f

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