Berlin gets a new 270-store 100,000 sq m mall
[BERLIN] Berlin, Europe's fastest-growing tourist destination, is taking a page from Dubai as it expands retail for the hordes of visitors.
The Mall of Berlin, a 270-store complex opening in the city centre on Thursday, gives the growing numbers of tourists who visit the German capital a new place to spend their money. Within a year, it's set to become the country's largest shopping centre as 30 per cent more space is added.
"It's not really a mall, but a whole new city quarter," said Andreas Kogge at Jones Lang LaSalle. "The malls on the edge of the city will certainly suffer."
Berlin is expanding its retail offering after opening dozens of hotels to keep pace with the influx of visitors. Like Dubai, Berlin's growing reputation as a shopping destination is bolstering its economy.
The Mall of Berlin, built on the site of the former Wertheim department store which is a five-minute walk from Potsdamer Platz, has about 100,000 square metres of shops in low-rise stone and glass townhouses that evoke the area's pre-war architecture. The developer, Harald Huth, plans to expand the mall by another 30,000 sq m next year. "This will be the most successful mall in Germany because we built something special at an extraordinary location," Mr Huth said. Tenants will include Guess, Karl Lagerfeld and Lacoste.
Retail sales in the German capital climbed 4.7 per cent in June from a year ago. That compared with a gain of 0.4 per cent in the country as a whole.
Berlin's economy expanded the most of all German states last year helped by tourism, as overnight stays climbed 8.2 per cent to 27 million.
The Wertheim department store that the mall replaces was destroyed during World War II. Two decades later, the Berlin Wall tore through the centre of that area.
After reunification, the property was the subject of a decade-long legal battle before Mr Huth and London-based Arab Investments bought it in 2011 for about 89 million euros (S$144.5 million).
When he bought the site, Mr Huth planned to build a complex with 200 outlets. He decided to increase the mall's size - and his budget - to meet tenant demand. - Bloomberg
