Commercial real estate http://shopandmall.ru http://www.shopandmall.ru/images/logorss.gif http://shopandmall.ru © ShopAndMall.ru News of Russian retail and commercial real estate. Fri, 09 Jul 2010 11:33:55 +0400 en Fri, 09 Jul 2010 11:33:55 +0400 http://blogs.law.harvard.edu/tech/rss info@shopandmall.ru info@shopandmall.ru http://shopandmall.ru/new_eng.php?news=103 The ECR Community Forum 2010, organized by ECR Finland, ECR France, ECR Poland and ECR Russia took place in Moscow on June 2-4, in Conference Hall, The Cathedral of Christ the Saviour News commercial real estate and retail Fri, 09 Jul 2010 11:33:55 +0400 The ECR Community Forum 2010, organized by ECR Finland, ECR France, ECR Poland and ECR Russia took place in Moscow on June 2-4, in Conference Hall, The Cathedral of Christ the Saviour. Forum featured: - Biggest FMCG/Retail event of a year in Russia (850 attendees, 70 speakers, 55 Best Practices presented); - International Best Practices (20+ countries attending) and Top International CEOs (Frans Muller, Metro Cash&Carry International; Xavier Filou, L’Oreal International; David Steer, Kraft Foods Russia; Akin Bayer, Metro Cash&Carry Russia, Lev Khasis, X5 Retail Group, Steven Schueler, P&G Russia, etc); - Major Retailers, Manufacturers and Associations on Stage (Metro, Auchan, X5 Retail Group, Kesko, Biedronka, Kraft Foods, Danone, P&G, Wimm-Bill-Dann, Coca-Cola, Nestle, The Global Consumer Goods Forum, etc); - Top Government Representatives (Ministry of Trade, Moscow Government, EU-Commission, etc). Akin Bayer, ECR Community Forum CoChairman, Managing Director, Metro Cash & Carry Russia: "ECR Forum was the biggest FMCG/Retail events of a year in Russia. It also offered the unique platform for retailers and suppliers as well as service providers to formulate efficient business solutions and best practices to serve our customers in a better way". David Steer, ECR Community Forum CoChairman, President & Area Director, Kraft Foods Russia: "This is the first time ECR Forum in Russia becomes international. We were pleased to welcome all international Guests and Speakers at the ECR Forum 2010 in Moscow". http://shopandmall.ru/new_eng.php?news=103 http://shopandmall.ru/new_eng.php?news=102 The highest prime shopping centre rents during Q1 2010 in Europe were achieved in the United Kingdom at ˆ1,900 per sq m per annum, followed by France (ˆ1,700). The third most expensive rents were recorded in Russia (ˆ1,500) followed by the rest of Western Europe. Due to the limited availability of prime retail space in many shopping centres across Europe, the outlook for prime rents in most European markets is stable despite the inevitable slowing of demand from occupiers over the last 18 months News commercial real estate and retail Tue, 22 Jun 2010 12:02:19 +0400 Jones Lang LaSalle has issued its Shopping Centre Rental Map which illustrates current market conditions across a range of European countries, giving an at-a-glance view of prime shopping centre rental levels together with short term growth prospects. The highest prime shopping centre rents during Q1 2010 in Europe were achieved in the United Kingdom at ˆ1,900 per sq m per annum, followed by France (ˆ1,700). The third most expensive rents were recorded in Russia (ˆ1,500) followed by the rest of Western Europe. Due to the limited availability of prime retail space in many shopping centres across Europe, the outlook for prime rents in most European markets is stable despite the inevitable slowing of demand from occupiers over the last 18 months. James Dolphin, Head of European Retail Agency at Jones Lang LaSalle, said: “Despite some softening of occupier demand over the past 18 months, the outlook for prime rents in shopping centres in most European markets has remained stable. The scarcity of prime product and a weak development pipeline will further enhance the rental growth potential for the best product in core locations. Key markets we expect to witness strong growth over the next six months are Russia and Finland. However, downward pressures still exist on rents in some locations, such as Spain, Ireland, Romania and Hungary due the constraints on the economy and the perceived increase in unemployment. Overall, the dynamic face of retailing and continuing demand from new retailers for prime shopping centres, together with active management opportunities should continue to go some way in shielding the best schemes from challenging occupier conditions.” Maxim Karbasnikoff, European Director, Russia & CIS, Head of Retail Department Jones Lang LaSalle, commented: "Since Q4 2009, we have seen an improvement in retail sales, particularly in Moscow. These trends, noted in H1 2010, give confidence to occupiers for future development. With existing supply limited and the future pipeline significantly reduced due to lack of financing, we expect to witness a growing tension between supply and demand in the next six months, and this will drive rents upwards, at least for prime retail schemes." http://shopandmall.ru/new_eng.php?news=102 http://shopandmall.ru/new_eng.php?news=101 M.video retail sales increased by 3.2% to 83 billion Russian rubles (RUB) with VAT in FY 2009. The Group’s total sales (including revenue from wholesale operations) also increased by 1.4% to 85.6 billion RUB (with VAT). Growth in revenues was driven by M.video’s expansion and was achieved despite a significant market decline due to the impact of the recession News commercial real estate and retail Mon, 24 May 2010 12:21:45 +0400 OJSC “Company “M.video” (“M.video” or the “Group”), Russia's leading consumer electronics retailer (RTS, MICEX: MVID), releases today its audited consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) for the year ended December 31st, 2009. M.video retail sales increased by 3.2% to 83 billion Russian rubles (RUB) with VAT in FY 2009. The Group’s total sales (including revenue from wholesale operations) also increased by 1.4% to 85.6 billion RUB (with VAT). Growth in revenues was driven by M.video’s expansion and was achieved despite a significant market decline due to the impact of the recession. The Group’s gross profit increased to 18,360 million RUB. M.video’s gross margin amounted to 25.3% in FY 2009 as compared to 25.0% in FY 2008. M.video’s operating profit (EBIT) reached 2,117 million RUB with the EBIT margin amounted to 2.9% in FY 2009. The Group’s EBITDA amounted to 3,244 million RUB and the EBITDA margin was 4.5% in FY 2009. M.video’s net profit for FY 2009 accounted for 783 million RUB. Alexander Tynkovan, President and CEO of OJSC “Company “M.video”, commented that: “We demonstrated positive sales dynamics in the recessionary period while the whole consumer electronics market reportedly declined in FY 2009. Among our major achievements by the year end 2009 were the improved gross margin, solid balance sheet and strong financial position with a high cash level and no debt”. He also added: “Our strong financial position allows us to manage our expansion proactively increasing the opening plan up to 30 new stores this year and to pay our first dividend from profits”. http://shopandmall.ru/new_eng.php?news=101 http://shopandmall.ru/new_eng.php?news=100 Direct retail real estate investment in Europe in the first quarter 2010 accounted for ˆ5.4 billion**, more than double the volume of Q1 2009. As Jones Lang LaSalle anticipated in its report – ‘The Big 5’ – core European markets continue to be the main focus for investors, with volumes in these markets (UK, France, Germany, Italy and Spain) accounting for over 80% of total retail transactions across Europe News commercial real estate and retail Thu, 20 May 2010 12:22:59 +0400 Jeremy Eddy, Head of EMEA Retail Capital Markets, said: “There has been a major rebound in retail investment activity during the start of the year and we are delighted to have been involved in a significant portion of this. Investors have been buoyed by increasing equity provision and an improvement in the debt markets, underpinned by the stabilisation of occupier markets. Geographic interest remains focused on the big five markets, and while investors took comfort in domestic investment in 2009, cross border transactions are now firmly back on the agenda. Similarly the product focus which initially targeted the very narrow prime assets and high street locations is now expanding to shopping centres and we expect renewed interest in the retail warehouse sector and more traditional hypermarket anchored schemes.” “Jones Lang LaSalle continues to assist clients in the purchase and sale of high quality investment product in a market where the real value of assets remains unclear, and we expect investment volumes to continue to improve throughout the year, with a number of significant deals in the pipeline in markets such as France, Spain and Germany.” Germany emerged as the most active market in the first quarter, with transactions totalling ˆ2.3 billion, outpacing the UK (ˆ1.4 billion) for the first time in the last 10 years. Jones Lang LaSalle advised on approximately 50% of retail transactions by volume in Q1 2010 for Continental Europe, including Corio’s acquisition of the Multi Portfolio in Germany, Spain and Portugal, Union Investment’s acquisition of Alexa Shopping Centre in Berlin, Germany and Allianz’s acquisition of Allee Shopping Centre in Budapest, Hungary. Anke Haverkamp, Head of Shopping Centre Investment in Germany, commented: “In 2009, the German shopping centre market continued to see stable investor demand, sustained by strong domestic funds. However this year, we have seen an increasing number of international players that are now returning to the German market, and as a result, prime yields have experienced yield compression during the first quarter of 2010. We expect investment criteria to widen in the next couple of months due to the growing investor audience and the confidence in the German economy.” Shopping centres have dominated retail transactions in Q1 2010, accounting for ˆ4.1billion, approximately 80% of the total volume across Europe. This has been driven by the re-emergence of major institutions, funds and property companies that are back in the market, having spent much of 2009 raising money and concentrating on their existing assets. Their main focus is prime, dominant shopping centres. The decrease in number of deals (despite the large increase in volumes) provides further evidence of larger volume transactions and a focus on shopping centres. A total of 94 deals transacted in Q1 2010, down 11% from Q4 2009, with the average deal size therefore increasing from ˆ42 million in Q4 2009 to ˆ57 million in Q1 2010. There were 10 deals of ˆ100+ million which is considerably higher than the quarter average of six in the last two years. Corio was responsible for more than a quarter of the investment volume, partly because of the Multi portfolio but also including the purchases of Le Vele shopping centre in Italy from Schoders’ European Property fund 1 for ˆ103 million and forward funding of Le Moulin de Nailloux in France for ˆ44 million. As a result listed REITs were the largest purchasers in the first quarter, whilst Developers/Property Companies were the largest vendors, accounting for over 50% of all sales across a broad selection of countries. Eddy concluded: “There is currently an opportunity for REITs and property companies who are keen to refresh and refocus portfolios and release equity from assets that have been worked hard during the last cycle. We see this trend continuing in Continental Europe where REITs are recycling their portfolio and taking on development opportunities where they are able to leverage their expertise and partner with equity, with the intention of driving future returns and expanding their geographic footprint.” http://shopandmall.ru/new_eng.php?news=100 http://shopandmall.ru/new_eng.php?news=99 The Forum takes place June 2-4 2010, in Conference Hall, The Cathedral of Christ the Saviour (Volkhonka 15) News commercial real estate and retail Wed, 12 May 2010 11:26:19 +0400 The Forum takes place June 2-4 2010, in Conference Hall, The Cathedral of Christ the Saviour (Volkhonka 15). Forum features: - 1 000+ attendees expected - international best practices (20+ countries attending) and top International CEOs (Frans Muller, Metro Cash&Carry International, Xavier Filou, L'Oreal International, Jean-Mark Saubade, Consumer Goods Forum, etc) - Major Retailers on Manufacturers on Stage (Metro, Auchan, Tesco, X5 Retail Group, Kesko, Kraft Foods, Danone, P&G, Coca-Cola, Nestle, etc) - Top Government representatives (MinFin, Minpromtorg, FAS) - Retail-tour: From traditional trade to the biggest store in Europe Visit the 6th ECR Forum and you will learn about: - How international retailers and manufacturers are benefiting from collaboration and implementation of ECR Best Practices and successfull growth strategies in diversified markets - The Consumer Goods Forum - an independent global parity-based Consumer Goods network - French and European best practice implementation for Shelf Ready Packaging - Category Management in Russia: Solutions for Successful Implementation - EDI Collaboration: Increase your Business Efficiency through Technology Benefits - The OSA insihts from the Global Leaders - Shopper Insights and Innovations. Efficient Product Launches - The benefits of implementing Global Standards of e-business from the perspective of today’s and future’s business requirements - Developing logistics in regions and forming the supply chain of tomorrow. - How does Trade marketing react on changing environment? What are the approaches and tools to win shopper attention? - How retailers and suppliers can improve profitability in crisis time? - How branded goods manufacturers and modern retailers see the process of driving demand and generate profitable, sustainable business growth together with their business-partners - Increase of collaborative efficiency - main target of suppliers, retailers and 3PL operators - Get latest insights about using the social media in your business - E-invoice pilot in Russia - How to make Scorecard a Tool for your business performance measurement and benchmarking - Developing a mutual and continuing relationship between retailers’ brands, products and agreed target consumers. http://shopandmall.ru/new_eng.php?news=99 http://shopandmall.ru/new_eng.php?news=98 The Russian real estate market has been deeply affected by the recession. An 8 percent contraction in the economy during 2009 severely affected corporate occupier demand and also dented confidence among investors who were used to double-digit returns. Developers and owners became increasingly flexible, initiating a very sharp contraction in real estate prices to reflect the new market reality; prime office values fell by over 70 percent in Moscow between mid 2008 and mid 2009, among the highest corrections in the world. Despite the improvements, the markets remain vulnerable, and any faltering in economic growth could derail the recovery News commercial real estate and retail Mon, 05 Apr 2010 12:01:36 +0400 The Russian real estate market has been deeply affected by the recession. An 8 percent contraction in the economy during 2009 severely affected corporate occupier demand and also dented confidence among investors who were used to double-digit returns. Developers and owners became increasingly flexible, initiating a very sharp contraction in real estate prices to reflect the new market reality; prime office values fell by over 70 percent in Moscow between mid 2008 and mid 2009, among the highest corrections in the world. Despite the improvements, the markets remain vulnerable, and any faltering in economic growth could derail the recovery. In Russia, the past year has been a challenging time for the investment market. Limited financing and uncertainty regarding prices and rents have continued to curtail investor activity, keeping lot sizes and transaction volumes down. But as the leasing market shows signs of stabilisation, we expect investment activity to increase gradually in 2010. Domestic investors are likely to be the major force as the market is still perceived to have too high a risk by foreign investors. Portfolio adjustment will continue across Russian cities, with developers and investors preferring to deal in the more mature Moscow market, rather than the ‘Millionniki’, Russia’s regional cities. While investors continue to be hesitant, tenants have started to buy assets for their own occupation as they perceive that markets have reached the bottom of the cycle. Currently, the majority of banks are adopting a wait-and-see approach in anticipation of asset price recovery, with only a few having brought some product to market at the end of 2009. Yields have stabilised since mid-2009 and tightened slightly in recent months for Moscow offices and shopping centres. Further yield compression across all sectors is anticipated over the medium term. The demand recovery will favour higher quality properties in Moscow, allowing landlords to lift rates for prime properties. http://shopandmall.ru/new_eng.php?news=98 http://shopandmall.ru/new_eng.php?news=97 This was announced last Friday, the 26th of March, at the business breakfast which was organized by Sistema-Hals, Apsys Group and Jones Lang LaSalle at the Ritz-Carlton hotel in Moscow News commercial real estate and retail Tue, 30 Mar 2010 11:55:49 +0400 The business breakfast was aimed at updating existing tenants on the current status of the leasing and planning of LETO project in St. Petersburg. The event was attended by more than 150 retailers and representatives of the participants of the Project. Fabrice Bansay, General Director of Apsys Russia, and Teimuraz Shengelia, Vice-President - Head of Commercial Real Estate Division of Sistema-Hals, announced current project progress including the construction status, pointed their satisfaction with the partnership and emphasized the stable future of LETO shopping center. Ekaterina Zemskaya, Associate Director, Retail department of Jones Lang LaSalle presented current project status, leasing dynamics and last project changes. Anchor LETO tenants told about their positive experience of the cooperation with project team. On a retail space of 80,000 square meters the LETO shopping and entertainment center will house more than 200 shops of well-known international and federal brands which will offer a unique variety of goods and services. To date, among others lease agreements are already signed, by Auchan hypermarket of 11,600 sq m, Media Markt for electronics goods on 6,000 sq m, H&M of 1,700 sq m, Inditex (Zara, Pull and Bear, Bershka, Stradivarius) of 3,115 sqm, Top Shop, Top Man, Miss Selfridge, Lady&Gentleman, Reserved, New Yorker, Ann Christine, Mothercare, NEXT, Claire's, The Body Shop, Justice, Le Pain Quotidian, Motivi, Promod, L’Etoile and many others. The complex will also offer a big food court with a various offer of restaurants, a huge entertainment area with cinema multiplex (10 halls) and an ice rink of 1000 sqm. http://shopandmall.ru/new_eng.php?news=97 http://shopandmall.ru/new_eng.php?news=96 The rate of development of new shopping centre space in Europe slowed considerably in 2009. It is unlikely that development levels will pick up before 2012 at the earliest, says real estate adviser Cushman & Wakefield in its new European Shopping Centre Development report News commercial real estate and retail Tue, 30 Mar 2010 11:49:10 +0400 2009 saw the sharpest decrease in new space in almost 15 years, with around 7.4 million sq m of new shopping centre space completed, a 19% fall on 2008. 2010 should see around 6.1 million sq m being completed. In 2011 shopping centre development is expected to hit its lowest level in seven years with around 5.0 million sq m due to be completed, 46% down on the peak of around 9.3 million in 2008. However, should the European economy bounce back quicker than expected, Cushman & Wakefield says that a large number of shelved shopping centre projects could be revived relatively quickly, boosting the development pipeline. After losing its number one position in 2009 to Turkey in the country ranking of shopping centre pipeline space, Russia once again dominates Europe, with 2.5 million sq m of space in development and scheduled to open by the end of 2011. Romania has had one of the most significant falls in the ranking from seventh to tenth place, as a large number of pipeline schemes have been put on hold. Development is expected to slow to 130,000 sq m in 2011, compared with the peak of around 750,000 sq m in 2008. In Western Europe, Italy, France and Spain saw the most new space being completed in 2009. The Italian market has been especially resilient, with just around 20% of its 2010-2015 pipe line so far being put on hold. It currently has just over 1 million sq m of new space under construction. Development activity has also increased significantly in France with around 880,000 sq m of space currently under construction. The largest shopping centre under construction is developer Westfield’s Stratford City at 186,500 sq m located alongside the 2012 Olympic Park and due to open in 2011. During 2009, France also moved into the top five of the new shopping centre completions table, with around 530,000 sq m delivered. The Netherlands also experienced a high level of completions during the year with more than double the 10 year average completed over the year. http://shopandmall.ru/new_eng.php?news=96 http://shopandmall.ru/new_eng.php?news=95 Sistema-Hals (HALS), a leading diversified company in the Russian and CIS real estate market, and Apsys Group, one of the leading European companies engaged in development and management of retail real estate assets, announce of the attracting of BNS fashion retailer to LETO shopping center (Saint Petersburg) News commercial real estate and retail Fri, 19 Mar 2010 12:11:15 +0300 Sistema-Hals (HALS), a leading diversified company in the Russian and CIS real estate market, and Apsys Group, one of the leading European companies engaged in development and management of retail real estate assets, announce of the attracting of BNS fashion retailer to LETO shopping center (Saint Petersburg). Such famous stores as Top Shop, Top Man and Miss Selfridges will be hosted in LETO. The leasing area will be 800 sq. m. Sistema-Hals and Apsys are building shopping center LETO with approximately 114,000 sqm GBA (about 80,000 sq. m.GLA) in Saint Petersburg. 70% of GLA of the shopping center has already been leased. The key anchor retailers of LETO are also Auchan on circa 11,600 sq. m, Media Markt on circa 6,000 sq. m, H&M on circa 1,700 sq, as well as New Yorker, Reserved and other leading international tenants. Exclusive marketing and leasing agent for LETO is Apsys Rus in partnership with Jones Lang LaSalle. http://shopandmall.ru/new_eng.php?news=95 http://shopandmall.ru/new_eng.php?news=94 Rental rents in shopping malls have generally been stable since the end of 2009. Rental rates for street retail premises have increased by 10-15% depending on specific well located properties News commercial real estate and retail Tue, 16 Mar 2010 11:13:26 +0300 “Rental rents in shopping malls have generally been stable since the end of 2009. Rental rates for street retail premises have increased by 10-15% depending on specific well located properties. In Moscow landlords aim to sign leases at a fixed rental rate, however, in the regions tenants often succeed to agree on percentage of turnover. Tenants are still focused on their expansion in Moscow and St. Petersburg as it was in 2009. According to retailers’ opinion, the regions still remain beyond their main priorities.”, - said Vasilisa Sitnikova, Consultant of Retail Services Department in Cushman & Wakefield. http://shopandmall.ru/new_eng.php?news=94 http://shopandmall.ru/new_eng.php?news=93 This year’s Russian Real Estate Summit, taking place on 7th - 9th June 2010 at the Marriott Grand Hotel in Moscow, offers a unique and highly valuable source of information and expertise on how to succeed in the current economic climate News commercial real estate and retail Wed, 03 Mar 2010 12:00:40 +0300 This year’s Russian Real Estate Summit, taking place on 7th - 9th June 2010 at the Marriott Grand Hotel in Moscow, offers a unique and highly valuable source of information and expertise on how to succeed in the current economic climate. Just some of the event highlights: A practical pre-summit seminar on “Management of distressed real estate assets in Russia”; The great executive real estate debate - with insights from the most innovative minds in the business - with a broad range of diverging opinions - on the hottest and most controversial topics of the day; Case studies session on “New creative strategies and structures for attracting investment into real estate and construction projects in Russia”; Interactive work groups for sector-specific real estate segments. For more information about the Summit you can visit the site of organisers. http://shopandmall.ru/new_eng.php?news=93 http://shopandmall.ru/new_eng.php?news=92 Sistema-Hals (HALS), a leading diversified company in the Russian and CIS real estate market, and Apsys Group, one of the leading European companies engaged in development and management of retail real estate assets, announce leasing of 3,100 sq. m in shopping center LETO (Saint Petersburg) to one of the largest anchor tenants - Inditex Group. Inditex will suit in LETO such significant brands as ZARA, Stradivarius, Pull&Bear and Bershka. The leasing period is 20 years News commercial real estate and retail Mon, 01 Mar 2010 11:46:40 +0300 Sistema-Hals and Apsys are building shopping center LETO with approximately 114,000 sqm GBA (about 80,000 sq. m.GLA) The outdoor parking is designed for 3,200 lots. LETO is ideally located in the actively growing and developing part of Saint Petersburg at the crossroad of Pulkovskoye Highway and the City Circle Highway (KAD). 70% of GLA of the shopping center has already been leased. The Grand Opening of LETO is estimated in autumn 2010. The key anchor retailers of LETO are also Auchan on circa 11,600 sq. m, Media Markt on circa 6,000 sq. m, H&M on circa 1,700 sq, as well as New Yorker, Reserved and other leading international tenants. Exclusive marketing and leasing agent for LETO is Apsys Rus in partnership with Jones Lang LaSalle. http://shopandmall.ru/new_eng.php?news=92 http://shopandmall.ru/new_eng.php?news=91 Retail real estate transaction volumes in Europe during Q4 2009 totalled ˆ4.5bn from 100 deals, nearly 60% up on ˆ2.9bn achieved from 66 deals in Q3 2009, according to Jones Lang LaSalle. However, full year total volumes in 2009 reached ˆ12.3bn, a 32% decline compared to a ˆ18.2bn total in 2008 News commercial real estate and retail Thu, 11 Feb 2010 11:31:54 +0300 Retail real estate transaction volumes in Europe during Q4 2009 totalled ˆ4.5bn from 100 deals, nearly 60% up on ˆ2.9bn achieved from 66 deals in Q3 2009, according to Jones Lang LaSalle. However, full year total volumes in 2009 reached ˆ12.3bn, a 32% decline compared to a ˆ18.2bn total in 2008. As the high cost and lack of access to finance continued to restrict the market, volumes in Continental Europe reached ˆ7.3bn, a year-on-year decline of over 40%. However, towards the end of 2009 activity picked up with total volumes in Q4 2009 reaching ˆ2.5bn from 65 transactions, almost 40% higher than Q3 2009. Accounting for 56% of all retail transactions in Europe, shopping centres remained the principal target for investors in 2009 with a continued focus on prime product in core Western markets. Continental Europe accounted for 66% of total volumes with ˆ4.8bn, compared to 55% in 2008 with ˆ6.8bn. Conversely retail park investment declined considerably from ˆ2.5bn in 2008 to ˆ526 million in 2009 reflecting a lack of high quality stock and the higher cost of finance. Jeremy Eddy, Head of European Retail Capital Markets, said “We are expecting a strong start to H1 2010 across Europe with an increasing trend of equity partnering with expertise in joint ventures and property clubs. This will enable equity players to access markets and opportunities while allowing REITS and property companies to stretch their constrained equity, enlarge their European footprint and generate fee income. Much of this equity will remain focused on the prime-end of the market and we envisage continued weak pricing for secondary assets as pricing has yet to move out to meet the pricing returns of opportunistic buyers, a significant group in this sector of the market.” Adrian Peachey, Head of UK Retail Capital Markets, commented “Recovery in pricing and liquidity of shopping centres continued in the second half of 2009 driven by the demand and supply imbalance. The question remains how long can this recovery be sustained; we believe prime assets are being slowly rebased and should hold relatively firm. The window of opportunity for brave sellers of dominant secondary schemes will remain during the start of 2010. However, an increase in the numbers of bank sales could dilute the supply and demand imbalance and this coupled with a fragile occupational story could put an end to inward yield shift in the more secondary centres.” http://shopandmall.ru/new_eng.php?news=91 http://shopandmall.ru/new_eng.php?news=90 Cushman & Wakefield experts believe that the basic recession down completed. It was important, stimulating a business activity at the market. Today, buyers and occupiers are much more active than a year ago News commercial real estate and retail Mon, 08 Feb 2010 11:01:35 +0300 Commercial real estate market of Russia has passed its bottom claim the consultants of Cushman & Wakefield in their quarterly report for Q4 of 2009. The report also outlines the key trends in the real estate market today. Cushman & Wakefield experts believe that the basic recession down completed. It was important, stimulating a business activity at the market. Today, buyers and occupiers are much more active than a year ago. The significant events of the last quarter in 2009 were two deals involving foreign capital, which is a sign of awakening interest from foreign investors for commercial real estate in Russia. Yields have remained stable throughout 2009. In 2010, we expect them to compress. The overall market correction is over. The shopping centers which have adapted to new conditions are ready for further development. Consumers returned to shopping centers, although their preferences are different from what it was before. During major changes at the market some of the experienced players are losing their natural advantages, giving newcomers a good chance. Generally experts forecast a positive scenario for the commercial real estate market development, however they mark its dependence on the economy environment. Denis Sokolov, Partner, Head of Advisory and Research, Cushman & Wakefield, commented: "We should bear in mind that the real estate market is highly dependant on other sectors of the economy. And there is no strong evidence that the economy had fully recovered, the “second wave” of crisis real estate market can not be excluded. Nevertheless, we see increased business activity and interest of large investors to the real estate market". http://shopandmall.ru/new_eng.php?news=90 http://shopandmall.ru/new_eng.php?news=89 Jones Lang LaSalle expects 2010 to be a challenging year for investors to navigate, with recovery uneven across Europe, according to a new report released today. Investors will find it difficult to secure product, to identify value and to establish pricing levels. Many investors and banks will still be working through legacy issues and refinancing remains a major concern News commercial real estate and retail Tue, 19 Jan 2010 11:33:40 +0300 Jones Lang LaSalle expects 2010 to be a challenging year for investors to navigate, with recovery uneven across Europe, according to a new report released today. Investors will find it difficult to secure product, to identify value and to establish pricing levels. Many investors and banks will still be working through legacy issues and refinancing remains a major concern. Jones Lang LaSalle expects prime office rents in Europe in 2010 to be down around 3% overall, but the slow recovery in demand combined with supply constraints will set the scene for broad but limited rental growth in 2011. The exception to this trend will be markets which corrected the most during the downturn, some of which could see the start of a more significant bounce-back driven by supply shortages. Good quality retail space in both high streets and shopping centres is still sought-after. The sector will be resilient and although prime high street rents will see a fall of around 2% in 2010, some high street markets such as Hamburg, London and Munich will prove the exception and we expect to witness rental growth. Prime shopping centre rents across the region will remain largely stable. In terms of working out their legacy issues banks now have more clarity around their real estate strategy than they had at the start of 2009 and this situation will only improve during 2010. A clearer strategy means that banks will begin to take the opportunity to start a steady release of saleable assets onto the market. Although this process has already begun we expect a greater flow of bank controlled assets being brought to market throughout Europe in 2010. http://shopandmall.ru/new_eng.php?news=89 http://shopandmall.ru/new_eng.php?news=88 In November a transaction of 3,500 sqm lease in SEC Megapolis was completed with the help of retail services department consultants of Cushman & Wakefield Stiles& Riabokobylko. The tenant is multiplex chain Raduga Kino News commercial real estate and retail Wed, 16 Dec 2009 10:57:48 +0300 In November a transaction of 3,500 sqm lease in SEC Megapolis was completed with the help of retail services department consultants of Cushman & Wakefield Stiles& Riabokobylko. The tenant is multiplex chain Raduga Kino. The entertainment center will include 6 halls multiplex, children’s game zone, catering area (restaurant, cafeteria, café). The interior will be designed in marine theme that gave the name to the center Raduzhny Ostrov (Rainbow Island). The retail chain Raduga Kino is a newcomer on the market. Raduzhny Ostrov will be the first entertainment center of the chain. In future one more project of this operator is planned to open in one of Moscow’s shopping centers. SEC Megapolis was opened in February this year. It is located on Andropova Prospect, 8. Its GBA (gross leasable area) is 44,000 sqm. Mosrybkhoz Ltd is the owner of the center. Among anchor tenants are Karusel, Technosila, Detsky Mir, Seppala, OGGI. The opening of the entertainment center will be a significant event for the customers of Megapolis and all retail market in whole. Such deals indicate at the positive sentiment on the retail market and create environment for recovery. http://shopandmall.ru/new_eng.php?news=88 http://shopandmall.ru/new_eng.php?news=87 Cushman & Wakefield Stiles& Riabokobylko has announced preliminary results for 2009 and company’s outlook for 2010. Volume of investments into commercial real estate has reduced by 62.9% compared to 2008. Rental rates have decreased by 30%-45% depending on a sector. New construction was the only indicator with the positive trend during 2009. In 2010 we expect correction of the main indicators after significant downfall in 2009 News commercial real estate and retail Fri, 11 Dec 2009 12:38:52 +0300 Cushman & WakefieldStiles& Riabokobylko has announced preliminary results for 2009 and company’s outlook for 2010. Volume of investments into commercial real estate has reduced by 62.9% compared to 2008. Rental rates have decreased by 30%-45% depending on a sector. New construction was the only indicator with the positive trend during 2009. In 2010 we expect correction of the main indicators after significant downfall in 2009. There was a limited demand for commercial real estate in the beginning of 2009. Tenants became active in all the sectors (office, retail, and warehouse) in the second half of the year. Lease extensions and renegotiations were common on the market. However these types of deals do not decrease total volume of vacant space. Inclusion of such deals into take up can give wrong idea of occupational market. Yields growth up to 13% and more was recorded for all the segments in the beginning of the year. They remained unchanged during 2009. Yields’ compression although insignificant (0.25%) is forecasted in 2010. There are still a huge number of opportunities for business development: reasonable rental rates, well located quality vacant blocks, costs’ reduction for real estate management and others. Growth of investments into commercial real estate is expected in 2010. Offices will remain the most attractive; about 70% of investments will be concentrated in the sector. Vacancy rates are likely to decrease in retail (by 4%) and warehouse (by 7%) in 2010. However vacancy rates in offices will raise by 3%. New construction will remain high, 1,2 mn sqm are announced for delivery next year. Denis Sokolov, Partner, Head of Research, Cushman & WakefieldStiles& Riabokobylko, commented: “Next year we expect occupier market recovery accompanied by 30% take-up growth. However this increase will hardly provide sufficient level of demand. We believe demand and supply balance will return to the office market in 2011-2012”. Lada Belaychuk, Deputy Head of Research Department, Cushman & WakefieldStiles& Riabokobylko, said: “Currently commercial real estate market is likely to be a market of expectations rather than of tenants (as it is being considered). Next year occupiers considering the market bottomed out will be in a hurry to close deals. Both existing and under construction space will be in demand. Developers can start to increase rental rates actively. Will this lead to a chain reaction and a new round of rents increases - depends not only on the balance of supply and demand, but on the macro-economic factors affecting the expectations”. http://shopandmall.ru/new_eng.php?news=87 http://shopandmall.ru/new_eng.php?news=86 Cushman & Wakefield is predicting that retail rental falls in most European markets should bottom out by mid-2010 although sustained rental growth is unlikely to be achieved until 2011. The company expects a relatively positive 12 months in the retail occupier and investment markets including increased retailer expansion and positive total returns by mid-year for core assets in most countries News commercial real estate and retail Wed, 09 Dec 2009 12:05:10 +0300 One of the key factors which is expected to drive growth in 2010 is the relative affordability of retail space. Retail rents have fallen across most markets in the last two years. High street rents in Romania and Ukraine for example have fallen by over 40%, with a further nine markets recording falls of over 10% from peak to trough (as at end September 2009). Retailer demand is already beginning to increase as rents seem to be bottoming out in many markets. Certainly for prime space, there has been an increase in demand from major retail brands across borders in a bid to secure AAA locations at rents which appear to offer relatively good value. The outlook for retail property investors is also brighter than for some time. Capital values for retail property have, over the last 12-18 months, seen significant falls. Darren Yates, analyst in Cushman & Wakefield’s European research group, said: “On balance, 2010 should be better than 2008 and 2009 in terms of the overall economic and retail environment, although the recovery is expected to be slow and fragile. However, on a positive note, low interest rates should support businesses and consumers and, together with lower rents in many areas, this should help to boost activity in both the occupational and investment markets.” Michael Rodda, a partner in Cushman & Wakefield’s cross-border capital markets team who specialises in retail assets, said: “There are signs the core European markets will follow the UK with significant yield compression for prime retail investments occurring during H1 2010. We are now seeing a lot more capital chasing prime retail assets across the board and the target geography is widening.” Mark Burlton, head of cross-border retail, Cushman & Wakefield, said: “Although the recession has seen many domestic and international retailers go out of business, many have also come through a difficult trading period in good health. These retailers are likely to increase their rate of expansion through 2010 in order to take market share and boost their profile whilst landlord incentives remain relatively generous. They are likely to be led by international retailers moving into core cities in new markets along with food and discount retailers where markets and customer sentiment are largely still in their favour.” Charles Slater, Partner and Head of Retail Services, Cushman & Wakefield Stiles & Riabokobylko, said: “In Russia there are positive signs of improved consumer confidence for 2010 which will be beneficial in terms of the overall retail environment. Retailers have now realigned their businesses adjusting for tougher trading conditions and the stronger ones are now in a position to take market share and take advantage of better value real estate opportunities.” http://shopandmall.ru/new_eng.php?news=86 http://shopandmall.ru/new_eng.php?news=85 H&M fashion store will be on two floors with a total surface of circa 1,700 sq. m News commercial real estate and retail Wed, 02 Dec 2009 12:01:46 +0300 Sistema-Hals (HALS), a leading diversified company in the Russian and CIS real estate market, and Apsys Group, one of the leading European companies engaged in development and management of retail real estate assets, are glad to announce the participation of H&M in their shopping center LETO (Saint Petersburg). H&M fashion store will be on two floors with a total surface of circa 1,700 sq. m. Sistema-Hals and Apsys are building shopping center LETO with approximately 114,000 sq. m and GLA of about 80,000 sq. m. The outdoor parking is designed for 3,200 lots. LETO is ideally located in the actively growing and developing part of Saint Petersburg at the crossroad of Pulkovskoye Highway and the City Circle Highway (KAD). The Grand Opening of LETO is estimated in Q3 2010. The key anchor retailers of LETO are Auchan on circa 11,600 sq. m, Media Markt on circa 6,000 sq. m, and entertainment park Babylon on circa 2,200 sq. m. Other key brands that confirmed their presence at LETO are: Inditex Group with Zara, Pull&Bear, Stradivarius & Bershka; Monex Group with Mothercare, NEXT, Claire’s, The Body Shop, Justice & Starbucks; LPP Group with Reserved, House, Cropp Town; as well as New Yorker, Ann Christine; Le Pain Quotidian, Motivi, Lady&Gentleman, Promod, L’Etoile, etc. http://shopandmall.ru/new_eng.php?news=85 http://shopandmall.ru/new_eng.php?news=84 X5 Retail Group N.V., Russia's largest retailer in terms of sales, today announced the decision of the Company’s Supervisory Board to recommend to X5's General Meeting of Shareholders to extend Lev Khasis' term as the CEO, which expires in May 2010, for another four years News commercial real estate and retail Fri, 27 Nov 2009 12:32:15 +0300 X5 Retail Group N.V., Russia's largest retailer in terms of sales, today announced the decision of the Company’s Supervisory Board to recommend to X5's General Meeting of Shareholders to extend Lev Khasis' term as the CEO, which expires in May 2010, for another four years. Chairman of X5's Supervisory Board Hervé Defforey commented: "Lev Khasis has played a key role in creating X5 Retail Group in 2006 and shaping the Company into what it is today - Russia's number one retailer and the most successful multi-format operator. The Supervisory Board looks forward to having Lev Khasis bring X5 to the next level of development over his next term." http://shopandmall.ru/new_eng.php?news=84 http://shopandmall.ru/new_eng.php?news=83 X5 Retail Group N.V., Russia's largest retailer in terms of sales, today announced that following the approval of its Supervisory Board, it has signed an agreement to acquire 100% of the business and assets of Paterson supermarket chain ("Paterson") from a holding company CorpInvest Inc News commercial real estate and retail Wed, 25 Nov 2009 11:14:37 +0300 X5 Retail Group N.V., Russia's largest retailer in terms of sales, today announced that following the approval of its Supervisory Board, it has signed an agreement to acquire 100% of the business and assets of Paterson supermarket chain ("Paterson") from a holding company CorpInvest Inc. Regulatory approval for the transaction was received on 27 October 2009 when the Russian Federal Anti-Monopoly Service granted its unconditional consent. X5 expects to complete the transaction by mid-December 2009. Paterson is a non-public supermarket chain of 82 stores located in Moscow, the Moscow region, St. Petersburg, Kazan and other cities of European Russia and Urals. Net selling space totals approximately 65 thousand sq.m., while total space amounts to 145 thousand sq.m., approximately 20% of which is owned. The transaction will be structured as a 100% payment in cash for equity and full assumption of Paterson's debt. In accordance with the agreement, equity value totals USD 189.5 million. Paterson's net debt stands at approximately USD 85 million. X5 plans to finance this purchase from its operating cash flows. Lev Khasis, X5 Retail Group CEO, commented: "The acquisition reinforces X5's number one position in supermarkets and adds high quality locations in key geographic markets with strong demographics for this format. We see substantial scope for raising sales density and profit margins of the acquired stores by rebranding and realigning the value proposition and leveraging X5’s operational scale, distribution infrastructure and efficiency programs. This is an excellent strategic and operational fit for X5 and offers attractive value for our shareholders." http://shopandmall.ru/new_eng.php?news=83 http://shopandmall.ru/new_eng.php?news=82 The retail real estate market in Russia is not booming though it is developing more sophistically News commercial real estate and retail Tue, 24 Nov 2009 10:32:48 +0300 Currently modern retail formats international, federal and local chains) in Russia account for 75% of the food retail turnover on average in the cities of central Russia. Supermarkets are the most popular format with 28% of share in food retail turnover although discounters and hypermarkets are also getting a foothold showing 24%. The majority of hypermarkets were opened in 2004-2008. Hypermarkets account for 11-45% in the food retail turnover within a municipality with 23% average share. A lot of cities still have a potential for hypermarket format development. Local market share depends on the city, popularity of the format and existing competition either from hypermarket chains or other formats. 65% of hypermarkets in Russia are operated by Russian chains. X5 Retail Group with their Karusel brand is the biggest chain of hypermarkets (20%). Although the Russian chains are more spread they had hard times in terms of goods turnover and assortment maintenance. Currently the draft law regulating retail in Russia is being debated. The law is aimed to regulate relationships of retail chains and producers and to support market competition. The expansion of a retail chain will be limited by a certain threshold in a market share within one city. The basis of market share estimation is still being discussed (market share in municipality, turnover of a chain, etc.). http://shopandmall.ru/new_eng.php?news=82 http://shopandmall.ru/new_eng.php?news=81 The first 165sq. m. Mustang store in Atrium on Zemlyanoy val will open on 10th November 2009. The transaction was completed in September 2009. The second deal for 131sq. m. in Metropolis retail centre on Leningradskoe shosse was signed in October with the store opening planned for December News commercial real estate and retail Tue, 10 Nov 2009 13:12:15 +0300 Global real estate consultant Cushman & Wakefield Stiles & Riabokobylko was appointed by Mustang Rus LLC as retail consultant in their transactions to open their first two self owned and operated stores in Moscow. The first 165sq. m. Mustang store in Atrium on Zemlyanoy val will open on 10th November 2009. The transaction was completed in September 2009. The second deal for 131sq. m. in Metropolis retail centre on Leningradskoe shosse was signed in October with the store opening planned for December. Cushman & Wakefield Stiles & Riabokobylko managed to negotiate favourable terms for Mustang which facilitated the successful completion of both transactions. Previously, the German brand Mustang Jeans was represented in Russia exclusively by a local distribution company Jeans Symphony. Mustang Jeans ceased partnership with Jeans Symphony to open their own retail stores. At the times of overall cost-cutting when financial resources and operational strategy optimization have become inevitable, retail brands tend to retail chains that are owned and operated by them directly. This enables them to better control their expansion costs, position their brand properly, make more efficient decisions on the pace of growth, as well as to diversify risks between the whole chain. Julia Kachur, retail real estate consultant at Cushman & Wakefield Stiles & Riabokobylko commented that: “… the Mustang transaction is a perfect example of the most recent trend of many international retailers entering the Russian market directly with their own retail chains. Three or five years ago most of the international brands worked through Russian partners – distribution companies such as Ramo, Jeans Symphony, Arts Group and others. Now we see that many brands prefer to open their own retail stores in Russia. That’s how Promod, Mango, Mexx, New Yorker and many others work now.” Robert Scanlon, General Director of Mustang Rus LLC noted: “Both transactions are very important for our company, since these will be the first two owned and operated stores of Mustang in Russia. We made this decision because we see that the Russian market has a lot of potential for our products and we decided to enter the market at this time due to the favorable terms for tenants.” He also recognized the active help of the Cushman & Wakefield Stiles & Riabokobylko team, especially Julia Kachur, for their input to the projects. http://shopandmall.ru/new_eng.php?news=81 http://shopandmall.ru/new_eng.php?news=80 X5 Retail Group N.V., Russia's largest retailer in terms of sales (LSE ticker: “FIVE”), today announced that it has received an unconditional consent from the Russian Federal Anti-Monopoly Service with regard to a potential transaction to acquire Paterson supermarket chain. This regulatory approval was an important prerequisite to proceeding with more advanced negotiations between the parties News commercial real estate and retail Wed, 28 Oct 2009 11:08:57 +0300 X5 Retail Group N.V., Russia's largest retailer in terms of sales (LSE ticker: “FIVE”), today announced that it has received an unconditional consent from the Russian Federal Anti-Monopoly Service with regard to a potential transaction to acquire Paterson supermarket chain. This regulatory approvalwas an important prerequisite to proceeding with more advanced negotiations between the parties. Paterson is a privately-owned retail chain of 82 supermarkets located in Moscow, the Moscow region, St. Petersburg and other cities of European Russia and Urals. X5 has made no definitive decision on a potential transaction. Terms, structure and financing are subject to further negotiations and approval by the Company’s Supervisory Board. We will continue to provide updates on material developments in line with the Company's policy. http://shopandmall.ru/new_eng.php?news=80 http://shopandmall.ru/new_eng.php?news=79 Transaction volumes in retail investment in the UK and Continental Europe* over the first three quarters of 2009 totalled circa ˆ8.1bn, just over half the level seen in the same period in 2008 (ˆ15.6bn) News commercial real estate and retail Wed, 28 Oct 2009 08:16:32 +0300 Transaction volumes in retail investment in the UK and Continental Europe* over the first three quarters of 2009 totalled circa ˆ8.1bn, just over half the level seen in the same period in 2008 (ˆ15.6bn), according to new research from Jones Lang LaSalle. In Continental Europe, volumes totalled ˆ1.5bn in Q3 2009, down circa 25% on the previous quarter which saw about ˆ1.9bn transact. The total volume in Continental Europe in the first three quarters of 2009 was just over ˆ4.5bn, around 40% of the volume transacted in the same period in 2008 (ˆ10.9bn), with the average lot size remaining the same at approximately ˆ44 million. Just over 100 deals have completed in Q1-Q3, including 14 over ˆ100 million. As in Q1, Germany and Italy were the most active markets in Continental Europe, accounting for 63% of total volume transacted in Q3; two of the largest deals over the summer were both transacted in Germany by German purchasers: developer ECE sold a stake in the Thier-Gelände shopping centre in Dortmund to the German fund manager Hamburg Trust (and private investors) for ˆ225 million and Union Investment acquired the Mercado shopping centre in Hamburg from Pirelli Real Estate and Morgan Stanley Real Estate for ˆ164 million. A number of smaller deals have transacted in the Netherlands during Q3, totalling circa ˆ145 million, with a number of property companies and institutions disposing of certain non-core assets to private investors. The proportion of shopping centre investment continued to increase in Continental Europe during the course of 2009, making up 72% of total volume in Q1-Q3, compared to 60% during the same period in 2008. This is due both to a lack of quality retail warehousing stock and a lack of debt available on this type of product leading to retail warehousing volumes in Q1-Q3 falling circa 80% year on year. Institutional buyers and funds continue to be the most active buyers in Continental Europe accounting for over 40% of total volume in Q3, and these are primarily German buyers. The persisting restrictions in the debt market continue to make it more difficult for leveraged buyers to find the right opportunities. Jeremy Eddy, Director, Head of European Retail Capital Markets said “The decline in volumes in the third quarter is contrary to an increase in investor sentiment over the same period. The lack of deals closing between July and September reflects the low initiation of deals in the first half of the year. We expect an increase in closings in the final quarter and estimate a year end total of circa ˆ7bn - ˆ8bn in Continental Europe”. In the UK, the first three quarters of 2009 have seen a total of ˆ3.6bn transact in 75 deals, compared to ˆ4.7bn during the same period in 2008 in 76 transactions, the average lot size remaining stable, whilst ˆ1.1bn was transacted in the third quarter. Adrian Peachey, Director, Head of UK Retail Capital Markets commented “The third quarter has seen an increasing appetite for the UK retail sector from UK and global investors but a substantial shortage of quality investment product, with a number of potential sales pulled from the market by hesitant vendors. This has led to a surge in pricing for defensive stock in particular, which in many cases continue to avoid the widespread issues of rental decline and tenant default seen in more secondary assets. Whilst equity buyers dominate, fresh debt (albeit on cautious terms) is more readily available than has been the case in the previous 12 months”. http://shopandmall.ru/new_eng.php?news=79 http://shopandmall.ru/new_eng.php?news=78 In the forth quarter of 2009 in MEGA Belaya Dacha (Moscow) and MEGA Dibenko (Saint-Petersburg) new shops will be opened, among them new for the Russian market brands and already familiar for the customer brands will be presented News commercial real estate and retail Wed, 30 Sep 2009 12:12:24 +0400 In MEGA Belaya Dacha 12 new leaseholders will open their shops. The Shops of Ile de Beaute, Le Coq Sportif, Adidas Originals, Early Learning Centre, Popugay Toys, Oriflame, Jewelux, Phard, Sun Fashion and Elite Sport will be situated in the central part of new building of trade center – on the specially equipped triangle not far from the skating-rink. In October in MEGA Belaya Dacha the third shop H&M will be opened, and till the end of the year – the first in Russia shop of Habitat will start working. In November in MEGA Dibenko the shop H&M will open too. It will be the first shop of popular fashion-brand in Saint-Petersburg. The shop of famous cosmetic brand Oriflame which will be opened in MEGA Belaya Dacha, will be the first retail store of the brand in Russia and the second in the world. It will be working in the format of concept store. As Irina Yohanson, the PR-manager of the network of family trade centers MEGA, has commented to the portal ShopAndMall, the major part of new leaseholders will occupy the new areas in the building of the second constructed part of the trade complex. The shop H&M in “Mega Belaya Dacha” will occupy the premise in which Bananamama was situated. The first in Russia shop Habitat, the opening of which is planned on the end of 2009, will be situated in the room where before it there was “Detskiy mir”. “Detskiy mir” in its turn will be placed n new trade areas. http://shopandmall.ru/new_eng.php?news=78 http://shopandmall.ru/new_eng.php?news=77 The reason of the delay was the absence of the renunciation of the rights on immediate ransom of shares by American fund Moore Capital. Potential customers – the fund TPG Capital and “VTB Capital” – don’t exclude the variant that Moore Capital is trying to redeem the share in favor of “Alfa-Group” News commercial real estate and retail Wed, 30 Sep 2009 12:10:43 +0400 The potential buyers of 35,4% shares of food hypermarket “Lenta” network, the fund TPG Capital and “VTB Capital”, were sure that all owners of retailer’s small shares would confirm their renunciation of immediate right on the ransom of that share till September, the 25th 2009. However American fund Moore Capital which owns 2% of the network hasn’t sent its renunciation yet. Analytics consider that this fact could be connected with the desire of the fund to purchase this share by itself in favor of “Alfa-Group”. We would remind you that the contract of purchase of Oleg Jerebtsov’s share at the price of 110-115 million dollars by the fund TPG Capital and the company “VTB Capital” was signed in September, the 4th 2009, the final buy-in was fixed on the beginning of October. Nevertheless all stockholders of the company have the right of primary ransom of the shares of their partners at the price 10% higher than the price at which the stock are being sold. According to the retailer’s charter, the fund Moore Capital has 30 days to inform other stockholders of their desire to purchase the stated share of stocks. This term ends on the 14th of October 2009. TPG and “VTB Capital” are almost sure that if the mentioned bargain takes place, bought shares will be passed to the holding “Alfa-Group”. http://shopandmall.ru/new_eng.php?news=77 http://shopandmall.ru/new_eng.php?news=76 The part of 49% of the company “4 Papas”, the francisee of American network of pizzerias Papa John’s in Russia, has passed in the possession of Finnish investment fund CapMan Russia Fund. With the help of the investor the company is planning to enter the regions and to widen its network considerably News commercial real estate and retail Tue, 29 Sep 2009 13:37:55 +0400 The part of 49% of the company “4 Papas”, the francisee of American network of pizzerias Papa John’s in Russia, has passed in the possession of Finnish investment fund CapMan Russia Fund. The sum of the bargain is being kept in secret, though the representative of CapMan notes that this sum is situated in usual corridor – 5-15 million dollars. Besides the finished bargain, the fund CapMan Russia Fund is searching for other objects for the investment in Russia, paying great attention to the sector of fastfood. “4 Papas” today is managing 9 restaurants in Moscow. With the help of the investor the company is planning to enter the regions, opening near 10 restaurants every year. The main accent of new establishments will be made on the pizza delivery to the clients. The cost of the opening of one restaurant, including the equipment, the stuff and car park of 10-20 cars is about 400-600 thousand dollars. We would remind you that at the moment the network Papa John’s takes the third place in Moscow among the pizzerias in the quantity of shop outlets. http://shopandmall.ru/new_eng.php?news=76 http://shopandmall.ru/new_eng.php?news=75 The average rate of rentals in trade premises within Sadovoe koltso is 1298 dollars for one square metre per year, that indicator is lower than the indicators of August 2008 by 42%, but it is higher by 8% than the indicator of July 2009 News commercial real estate and retail Tue, 29 Sep 2009 13:36:31 +0400 According to the report of the commercial real estate market in Moscow in August 2009 from the consulting company Russian Research Group, the lease market has considerably reduced. Thus the quantity of trade areas decreased by 31% in the whole area and by 28% in the quantity of the objects. The average rate of rentals in trade premises within Sadovoe koltso is 1298 dollars for one square metre per year that indicator is lower than the indicators of August 2008 by 42%, but it is higher by 8% than the indicator in July 2009. For the trade premises outside Sadovoe koltso last month the cost of lease for one square metre hasn’t changed and it is 36% behind the indicators of last year. The average rental is 681 dollar for one square metre per year. http://shopandmall.ru/new_eng.php?news=75 http://shopandmall.ru/new_eng.php?news=74 The opening of the shop of worldwide famous Swedish retailer will be held in November, the 5th. The area of shop outlet in trade and entertainment center “Mega-Dibenko” will be 2300 square metres. The opening of the second shop in Saint-Petersburg in the trade complex “Stokmann Nevskiy center” is already planned on 2010 News commercial real estate and retail Mon, 28 Sep 2009 12:26:30 +0400 The first shop of the Swedish retailer Hennes & Mauritz (H&M) in Saint-Petersburg will be opened in November, the 5th in trade and entertainment center “Mega-Dibenko”. The area of shop outlet in trade and entertainment center “Mega-Dibenko” will be 2300 square metres. In addition the address of the second shop which will be opened in 2010 is already known. It will be placed in the trade center “Stokmann Nevskiy center” which is being constructed now in the center of the city. The company H&M is negotiating with other leassors too, however their names will be kept in secret until the moment of the contract set up. Experts consider that the Swedish retailer has chosen the most favorable time for the entering the market – when rentals and competition are considerably reduced. The cost of the lease, according to the experts, will be 6% from the turn-over of the company, that is about 600 dollars for square metre per year. http://shopandmall.ru/new_eng.php?news=74