Work starts on Irish firm's vast Slovak scheme

Overseas PropertyThe foundation stone has been laid for Ballymore's Eurovea project in Bratislava. It is the largest overseas development ever undertaken by an Irish company, writes Jack Fagan from Bratislava

Construction has just begun on the largest single property development ever undertaken overseas by an Irish company. Ballymore, the international company controlled by Sean Mulryan, is spending close to €270 million on the first phase of a city centre scheme in Bratislava, the capital of Slovakia, which will include the country's largest shopping centre, a five-star Sheraton hotel, office complex, leisure and entertainment facilities, 250 apartments and the city's biggest underground car-park.

The river-front development will cover an area of over 30 acres in the heart of Bratislava, linking the historic city centre with the Danube. The location could not have been better, next to the Old Town precinct, the city's jewel with cobblestone squares, narrow streets and a castle high above the houses with views of the city and Europe's second longest river.

Bratislava's choice of Ballymore to carry out the vast Eurovea project - the most crucial development in the city in modern times - follows a careful study of its track record, its expertise and financial resources, as well as its highly innovative rejuvenation projects in the London docklands.

Even with a high approval rating on those issues, Mr Mulryan and Ballymore's executive director, Dr Peter Bacon, needed all the diplomatic and business skills they could muster to resolve a range of issues, including complicated ownership rights before deciding to proceed with the project.

The unashamedly modern designs produced by Ballymore's international team of architects won early endorsement in a city which greatly values its architecture and old buildings, most of them newly restored as a showpiece of post-communist change.

City architect, Professor Stefan Slachta, told a packed press conference in Bratislava last Thursday that he considered Eurovea as "a very respectful project" - respectful to the city and the environment. He believed that it would enrich the city with an attractive riverside zone. "It might be a project which will change the major opinion of today's Slovak society about modern architecture," he said.

Thousands of Slovaks packed into Bratislava's main square on a warm Thursday evening for an open air concert of classical music and opera sponsored by Ballymore to mark the start of the Eurovea project. The enthusiastic response to the musicians and singers underlined the strong interest among the public in serious music. Later, more than 500 guests, including two of Slovakia's deputy prime ministers, several government ministers, diplomats and city officials attended an open air reception on the elevated forecourt of the Slovak National Theatre which overlooks the site.

There they watched Mr Mulryan, group managing director of Ballymore, and the Lord Mayor, Andrej Durkovsky (himself an architect), lay a foundation stone, paving the way for the construction to begin.

Guests were then treated to a sophisticated laser show which illustrated the overall dimensions of the development, as well as the parameters of a new public square in front of the Slovak National Theatre. Spotlights were then focused on a range of earthmovers, cranes and powerful trucks as they began a round-the-clock routine that will continue without interruption for three years.

Long before the first phase is completed in 2009, Ballymore expects to begin development work on the second phase of Eurovea, which is expected to include a business centre and up to 1,000 apartments.

KBC Bank, parent company of the Dublin-based IIB, is to lead a syndicate of European banks which will fund the first phase of the development. Ballymore's group finance director, Brian Fagan, is directly involved in Eurovea and other central European markets.

A major German construction company, Bilfinger Berger, has begun excavating the huge Bratislava site, a major engineering challenge which also involves an upgrading of the city's defence against flooding from the fast-flowing Danube. Several other leading construction firms in central Europe are in competition for the principal contract, completing the main buildings which will have a floor area of 230,000sq m (2.5 million sq ft). Around 3,500 construction workers will be involved in the project.

Marks & Spencer is to anchor the shopping centre which will have more than 40,000sq m (430,560sq ft) of space on three levels. As the country's first regional shopping centre, it will more than double the overall volume of retail space in Bratislava which has a population of over 500,000.

Other anchors will include Sportisimo, Kenvelo Nike, Next, Mothercare, Benetton, Zara, H & M and Peek & Cloppenburg. Rents agreed are around 50 per cent higher than in competing shopping centres and, despite a high level of inquiries from other retailers, Ballymore is in no hurry to lease additional space until the project is near completion.

The company is expected to have a rent roll of well over €20 million from the centre which it will hold as a long term investment. The decision by Starwood Hotels and Resorts Worldwide to operate the five-star, 207-bedroom hotel is seen as a major coup for the city where other top class hotels continuously report exceptionally high occupancy rates.

A multiplex cinema and an IMAX theatre and health and fitness facility will also be available for letting.

The 250 apartments overlooking the Danube are expected to sell rapidly when they are released once the other elements of the scheme are completed. Because of its primary location alongside the Danube, Eurovea will be well served by public transport, which is exceptionally good in the city and includes trolleybus, tram and bus services. Additionally, the complex will have a landing for hydrofoil ferries from Vienna and Budapest which are close by.