2015
A GUIDE TO THE RUSSIAN RETAIL PROPERTY MARKET
260+ Approximately
offices in more than 60 countries
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Moscow retail market is approaching European capitals in terms of saturation with quality shopping centers
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Moscow retains big retail opportunities while current conditions are characterized as tenant favorable
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Moscow Retail Market
PEOPLE Population of Moscow
12.198 mln
INCOME Average income per person 2014
870 $/month
RETAIL Retail turnover 2014
114.9 bln $/year
MOSCOW RETAIL MARKET OVERVIEW Moscow is the biggest consumer and retail market in Russia. Muscovites are active consumers. In recent times, people tend to spend more time in shops and malls and it has become a cultural element of Moscow life. Shopping mall format is very popular in Moscow. There are 126 quality shopping centers totaling 4.6 mn sq m of GLA. There are more than 20 shopping centers under construction, which are planned for delivery in the next 2 years. Lacking entertainment options, shopping centers are an attractive leisure opportunity in Moscow. 2015 has been a challenging year for the Russia’ retail sector, which is struggling with fragile demand, rising vacancy and falling rents. While the performance of Russia’s regional markets is still uncertain, Moscow demonstrates the strongest performance among other Russian cities. Many retailers still have conservative growth plans, but the number of retailers looking to exit the market has dropped noticeably. Market segment leaders such as Auchan, X5, Magnit, Leroy Merlin, Detsky Mir, Eldorado, Lenta are still actively pursuing their expansion plans. Despite the recent instability of the market, established prime shopping malls in Moscow have performed strongly, keeping vacancy low (3-4%) and stable rents.
MOSCOW MAIN MARKET INDICATORS 2015
2016 4 900 000 m2 TOTAL STOCK
4 600 000 m2
300 000 m2
TOTAL STOCK
NEW CONSTRUCTION
413 000 m2 8%
10%
NEW CONSTRUCTION
VACANCY RATE
VACANCY RATE
3500$
2500$
PRIME RENTAL RATE
PRIME RENTAL RATE 7
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SALARIEVO
MOSCOW RETAIL MARKET RECENT PROJECTS BY CUSHMAN & WAKEFIELD COLUMBUS
METROPOLIS Phase 2
GLA – 135 000 m2 Оpening – 14.02.2015
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GLA – 38 000 m Оpening – Q3 2016 Metropolis, the most successful fashion destination in Moscow, is being enlarged, bringing to its visitors a completely new atmosphere. The Mall offers a match of trendiest and premium labels in a stylish environment of leisure and entertainment. The Mall is also a food celebration with over 10 restaurants with terraces on the top level. The exclusive 2 500 sq m fitness & pool will allow the customers to exercise and relax. Fashion retail gallery will include key international brands including new brands on Russian market like Victoria’s Secret full concept lingerie store. Kids brands, young fashion and family fashion gallery will offer to its customers a variety of choices and shopping opportunities.
SEC Columbus is located at one of the most important transport hubs of the city – Varshavskoe highway, next to Prazhskaya metro station. Columbus includes: a fashion gallery of more than 200 well-known international brands (70 000 sq m), including all brands of Inditex company (with total area 9 500 sq m), H&M, Uniqlo flagship store, Koton, LC Waikiki, Reserved, Lady & Gentleman, Mango, Snezhnaya Koroleva, a unique entertainment zone, restaurants and cafes, a foodcourt zone, a big number of children’s goods stores (more than 10 000 sq m), including Detskiy Mir, Deti and Mothercare, 13 screen multiplex Kinomax, hypermarkets O’KEY, M.Video and Decathlon. The SEC has a convenient parking of 2000 lots.
Our mission: Leasing
Our mission: Concept Development & Leasing
ROZHNY
ZHUKOVSKY
RAMEN
SKY MALL GLA – 130 000 m2 Оpening - Q2 2018 Sky Mall is a new type of shopping and entertainment center – the project will be a key part of the social infrastructure in New Moscow. Sky Mall will be the only project in the area that combines fashion outlet, traditional mall and indoor and outdoor facilities for leisure for the whole family. The project has a strategic location in New Moscow next to Vnukovo airport on the Kievskoe highway – the main artery that unites “old” Moscow with its expanded territories, in the middle of a large new residential agglomeration with a rapidly growing population.
Our mission: Concept Development & Leasing
MOREMALL MOSCOW GLA – 60 000 m2 Оpening – Q1 2016 Moremall is located in one of the most prestigious districts of Moscow, right next to Kutuzovskiy Avenue, 150 m away from Slavyanskiy Bulvar metro station and 200 m away from an important transport hub. The catchment area of the project includes over 500 000 people. Moremall will become the first SEC on Kutuzovskiy Avenue with high quality middle price segment brands and middle+ shopping gallery. Moremall will include such anchor tenants as AV Market, Formula Kino, M.Video, Detskiy Mir.
Our mission: Leasing
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MOSCOW RETAIL MARKET RECENT PROJECTS BY CUSHMAN & WAKEFIELD DRUZHBA
ACTOR GALLERY 2
GLA – 11 700 m Оpening – 2017
GLA – 5000 m2 Оpening – Q3 1996
Druzhba is one of the most successful projects among small shopping centers in Moscow. The quality of functional zoning and tenant mix will be improved within the reconstruction process.
Actor Gallery is a prime property comprising a total area of 18 315 sq m located on one of the most prestigious and valuable streets in the world. The building houses both a business and a retail centre with direct access to the undeground parking and the metro.
Our mission: Concept Redevelopment & Leasing
The biggest H&M store in the whole CEE and Russia will soon open in iconic Actor Gallery. The 5000 sq m store in line with H&M latest design concepts will be welcoming the first clients in about 2 years. Our mission: Concept Redevelopment & Asset Management & Leasing
250,000 sq m
leased in the best shopping malls 660 deals transacted (2013-2015) 10
85
concepts developed (2013-2015)
ODINTSOVO GALLERY GLA – 35 000 m2 Оpening – Q3 2017 Odintsovo Gallery shopping and entertainment center will be the first professionally planned and designed retail project in the city. The project is located at the entrance to the city, on Mozhayskoe highway, 5 km from Moscow. Odintsovo Gallery will provide daily shopping and entertainment facilities for the local population. Our mission: Concept Development & Leasing
SEC POLEZHAEVSKIY GLA – 50 000 m2 Оpening – Q1 2016
GAGARINSKY Phase 2 GLA – 17 325 m2 Оpening – Q4 2017 The second part of SEC Gagarinskiy will be connected to the existing shopping complex and will include extended family-oriented entertainment and a cinema. Our mission: Concept Development & Leasing
SEC Polezhaevskiy is located at the intersection of Khoroshevskoe Highway and 4th Magistralnaya Street, next to Khoroshevskaya and Polezhaevskaya metro stations. Due to its good transport accessibility, the SEC will become a perfect place for daily shopping and leisure for the area residents. SEC Polezhaevskiy will include such anchor tenants as AV Market, Formula Kino, M.Video, Detskiy Mir. Our mission: Leasing
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MOSCOW RETAIL MARKET RECENT PROJECTS BY CUSHMAN & WAKEFIELD RIVIERA
KOTELNIKI 2
GLA – 97 000 m Оpening – Q2 2016
GLA – 92 000 m2 Оpening – 2018
The shopping and entertainment center will be located on the Third Transport Ring. The project initially planned in 2005 has been enlarged and adapted to new market requirements. Excellent visual characteristics will contribute to shopping center zoning and provide additional comfort to the customers.
The concept of the project is a complex solution for the transport hub integration including Kotelniki metro station (end station of one of the most loaded metro lines, estimated passenger flows – 150,000 people per day), parking, bus station and shopping center offering wide choice of goods and services for Moscow citizens and transit passengers.
Our mission: Concept Redevelopment
SPARTAK 2
SALARIEVO
GLA – 80 000 m Оpening – 2018
GLA – 140 000 m2 Оpening – 2018
Cushman & Wakefield has developed the concept of Spartak shopping center which will be a part of Tushino airfield development interconnected with metro station and new Spartak sports stadium.
Salarievo is part of a transport interchange hub in new Moscow. It will combine a shopping mall with a bus/metro/parking hub. Daily flows within transport hub are estimated at 240,000 people per day. Shopping and entertainment center will comprise retail park, shopping gallery and entertainment zone.
Our mission: Concept Development
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Our mission: Concept Development
Our mission: Concept Development
ART RUBLEVKA
PODOLSK GLA – 42 000 m Оpening – 2018
GLA – 26 000 m2 Оpening Phase 1 – 2016-2017
Shopping and entertainment center on Komsomolskaya Street will become the largest and the most quality project located in the city center. Beneficial location in the center of the city near Railway Station Square and convenient transport access will provide the Project with the highest footfall in comparison to local competitors.
Art Rublevka is a lifestyle community center located in one of the most prestigious districts of Moscow region – Rublevka. The Project will become a new cultural cluster and priority destination point for local residents. Art Rublevka will include gourmet supermarket, large sports area, entertainment for kids and adults (educational centers, exhibitions, concerts, master classes, lectures and other events), a number of restaurants and cafés. Location in a green area will provide additional opportunities for family leisure.
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Our mission: Concept Development
Our mission: Concept Development
ABRAMTSEVO
ZOLOTOY BEREG 2
HOMELAND
GLA – 50 000 m Оpening – 2018
GLA – 32 000 m Оpening – 2018
GLA – 18 000 m2 Оpening – 2018
Abramtsevo shopping and entertainment center will be beneficially located on Moscow Ring Road (MKAD) in the East of Moscow, in the nearest proximity to densely populated dormitory areas of the city. The Project will be anchored by food hypermarket, DIY, W&B and cinema.
The ancient town of Sergiev Posad just outside Moscow is one of the pearls of the Golden Ring of historic towns surrounding the capital. Sergiev Posad is also unofficially known as the cultural capital of the Moscow region. The town’s streets are populated by a mix of pilgrims, monks and tourists. Zolotoy Bereg Project will facade important transport artery – Moskovskoye Highway and will be located at the entrance to Sergiev Posad, The concept of the Project is oriented on modern family combining opportunities for everyday shopping, leisure and entertainment.
Brand new shopping center in Odintsovo will be one of the largest retail projects in the city. It will be opened on the main street of the city – Mozhayskoye Highway. The Project includes extended shopping gallery that will offer wide choice of goods and services for Odintsovo residents.
Our mission: Concept optimization
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Our mission: Concept Development
Our mission: Concept Development 13
Regional Retail Market
PEOPLE Population of Russia
146.267 mln
INCOME Average income per person 2015
400 $/month
RETAIL Retail turnover 2014
682.8 bln* $/year
* calculated according to the average RUB/USD exchange rate as of Q1 2015
REGIONAL RETAIL MARKET OVERVIEW
MEGA June Felicita
Saint-Petersburg Sergiev-Posad Moscow
Central Market
MEGA Oktyabr
Zolotoy Bereg
Kirov
Kazan Nizny Novgorod
ESSEN
Saratov Orenburg
Lipetsk Volgograd
Bograda
8 March MEGA
June MEGA Burunduki
Novosibirsk Barnaul
Krasnoyarsk
Gulliver Vesna
Rostov-on-Don
MEGA Vertical
Volgamall
Krasnodar
Predmostnaya
Ekaterinburg Tyumen
Samara
TAU Gallery TSUM
MEGA Naberezhnue Chelny
Kristal Star City Mall
Mega-City
Projects
MEGA MEGA
Population
Existing
5 mln <
Under Construction
1 < 5 mln 0 < 1 mln
RUSSIA MARKET OVERVIEW
Russia is generally undersupplied with shopping centers with 120 sq m of quality retail per 1000 inhabitants. However retail is distributed unevenly with some cities like Krasnodar having over 700 sq m while other cities barely reach 50 sq m.
Russia has the largest retail market in Europe with GLA 17,4 mn sq m of quality retail space in 484 shopping malls and the largest retial pipeline in Europe with 130 shopping centers being under construction with total GLA about 5.0 million sq m â&#x20AC;&#x201C; this is 30% of existing stock.
In 2015 consumer market will face a major challenge: middle class growth is stagnating while the lower middle class boosted by government spendings will gain purchasing power.
Russia has impressive development potential compared to the UK and France having 264 and 267 sq m per 1000 inhabitants respectively.
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REGIONAL RETAIL MARKET RECENT PROJECTS BY CUSHMAN & WAKEFIELD CENTRAL MARKET, Kirov
PREDMOSTNAYA, Krasnoyarsk
2
GLA – 30 800 m Оpening – 2018
GLA – 62 000 m2 Оpening – 2018
Operating central food market will be transformed into a new shopping and entertainment center. The key feature of the new concept is authentic farmers’ market, which will historically remain within the project.
The concept of the shopping and entertainment center was planned in the framework of the Enisey river embankment development. The shopping center will comprise hypermarket, cinema, entertainment center, retail gallery shops, cafes, restaurants and food court.
Our mission: Concept Development
Our mission: Concept Development
RETAIL PARK BURUNDUKI, Novosibirsk GLA – 72 400 m2 Оpening – 2018 The Retail Park will be opened in an actively developing part of Novosibirsk, the capital of Siberia. In addition to anchor tenants (DIY, hypermarket, furniture store, sport goods supermarket) the project includes various entertainment concepts: oceanarium, cinema, entertainment center for kids and interactive museum. Our mission: Concept Development
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8 MARCH, Ekaterinburg GLA – 68 000 m2 Оpening – 2018 The concept of a four-level modern mall will be located in the heart of Ekaterinburg. Anchor tenants include: a hypermarket, a W&B supermarket, sports goods, a cinema, and an entertainment zone. Outdoor leisure area will provide additional entertainment opportunities for kids and adults. Our mission: Concept Development
TSUM, Lipetsk GLA – 42 000 m2 Оpening – 2018 TSUM (Central Department Store) in Lipetsk will be reconstructed to modern 5-stored shopping and entertainment project in the very city center. Tenant mix will include cinema, supermarket, food court, restaurants and fashion gallery. Our mission: Concept Development
STAR CITY MALL, Tyumen 2
TAU GALLERY, Saratov
GLA – 53 000 m Оpening – Q3 2016
GLA – 42 000 m2 Оpening – 01.10.2015
Star City Mall is a regional shopping and entertainment center located in a rapidly developing residential area of Tyumen. Easy transport access from the federal road Tobolsky path and excellent visibility will create an intensive customers’ flow. The concept of the Mall reflects the modern family lifestyle, providing excellent opportunities for everyday shopping, leisure and entertainment. Main anchors – Auchan, H&M, Eldorado together with over 160 stores of the shopping gallery will provide the customers with great shopping opportunities.
TAU Gallery is the pre-eminent center in Saratov. The shopping and entertainment center is located in the center of the city, in a densely populated residential area. The project includes Auchan hypermarket, Сinema Park (8 halls), 1st flagship stores of H&M and Koton, Sportmaster, M.Video, Detskiy Mir and more than 20 operators of foodcourt and restaurants. Our mission: Concept Development & Leasing
Our mission: Concept Development & Leasing
ESSEN HYPERMARKET, Naberezhnye Chelny 2
GLA – 40 000 m Оpening – 2018
The extension of existing Essen hypermarket within the development of a large-scale shopping center. The Project will be especially focused on family leisure and education for children. Our mission: Concept Development
KOROGLU PARK, Baku GLA – 79 000 m2 Оpening – 2018 Koroglu Park will façade the main transport artery of the city – Heydar Aliyev avenue. Cushman & Wakefield team was working on concept development of retail part of mixeduse complex. Modern shopping center will combine classic mall and open-air premium shopping gallery. Our mission: Concept Development
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RUSSIA RETAIL SUPPORT TO GLOBAL BRANDS COMING TO RUSSIA
MONCLER
PRADA
RUSSIA - MOSCOW
RUSSIA - MOSCOW
Cushman & Wakefield advised Moncler on the opening of the first Moncler shop in Stoleshnikov lane in Moscow.
Cushman & Wakefield advised Prada on the opening of the first Prada shop in Stoleshnikov lane in Moscow.
OUR COLLABORATION Comprehensive market research based on Cushman & Wakefield global platform and deep local expertise
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TENANT PORTFOLIO OPTIMIZATION AND RENEGOTIATIONS
YVES ROCHER
MTS
RUSSIA - MOSCOW
RUSSIA - MOSCOW
Renegotiations of commercial terms in lease agreements.
Renegotiations of commercial terms in lease agreements.
YO U R B E N E F I T S Best option in terms of location, competition, catchment area and lease conditions
Advantageous commercial conditions for long-term perspective
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OUR SERVICES
ADVISORY • Land plot analysis • Development and optimization of shopping and entertainment center concepts: − territory planning (AutoCAD); − floor plans (AutoCAD); − sections (AutoCAD); − 3D model (SketchUp). • Functional zoning of floor plans and merchandising • Rent revenue estimation • Concept support in collaboration with architectural and project development companies
Leas tion in Marke g ting
PROJECT DEV EL Coord OP ina
T EN M
CLIE
CAPITAL MARKETS • Investment sales • Sale and leaseback transactions • Mergers and acquisitions in real estate • Debt resource management: debt funding, restructuring, raising debt capital for completed projects and projects under construction • Structuring of joint ventures on project and corporate levels
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Land
Id e a & C CO
NCE
P T DE
LEASING & MARKETING • Development of strategic marketing & leasing programs (shopping centers, street retail) • Sale transaction support • Maximization of property value and occupancy levels • Advising new retailers on market entry and optimization portfolio of existing retailers
ENT
d plot
C o ncep
t
EVELOPM
ENT
ENT GEM NA
MA ts T arke al M nagement pit ty Ma r
Pro Ca pe
AS SE
PROJECT MANAGEMENT • Technical consultancy at the prelease/purchase stage • Project Management (design, fit-out, construction) • Technical due diligence • Construction project analysis • Space Planning (test-fit) • B.O.M.A. measurement • Pilotage • Green Certification
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CUSHMAN & WAKEFIELDâ&#x20AC;&#x2122;S RUSSIAN RETAIL TEAM
EKATERINA ZEMSKAYA Partner, Head of Retail Services
EVGENIYA OSIPOVA Associate
+7-919-105-21-01
+7-919-105-79-05
Ekaterina.Zemskaya@cushwake.com
Evgeniya.Osipova@cushwake.com
ANDREY SHUVALOV Associate
ANASTASIA KUZNETSOVA Associate
+7-903-256-21-74
+7-919-105-21-02
Andrey.Shuvalov@cushwake.com
ZULFIYA SHILYAEVA Associate
OXANA MOSTYAEVA Associate
+7-916-501-41-92
+7-916-181-74-29
Zulfiya.Shilyaeva@cushwake.com
Oxana.Mostyaeva@cushwake.com
REZEDA SADRITDINOVA Senior Consultant
REGINA UMIAROVA Senior Consultant
+7-919-105-79-08
+7-916-817-23-47
Rezeda.Sadritdinova@cushwake.com
Regina.Umiarova@cushwake.com
ALISA TYUKHTINA Senior Consultant
ANNA MANKOVA Consultant
+7-916-173-66-93
+7-916-552-61-48
Alisa.Tyukhtina@cushwake.com
Anna.Mankova@cushwake.com
LEILA AKHMETZHANOVA Consultant
VALERIYA STEPANOVA Junior Consultant
+7-916-836-18-64
+7-495-799-98-88 ext. 596306
Leila.Akhmetzhanova@cushwake.com
Valeriya.Stepanova@.cushwake.com
ALEXANDRA PHILIPPOVA Junior Consultant +7-916-814-53-36 Alexandra.Philippova@cushwake.com
RUSALINA RAMAZANOVA Junior Consultant +7-910-463-43-17 Rusalina.Ramazanova@cushwake.com
SVETLANA NAKHRATOVA Assistant +7-495-797-58-59 Svetlana.Nakhratova@cushwake.com
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Anastasia.Kuznetsova@cushwake.com
We are the center of retail
Cushman & Wakefield Ducat Place III, Gasheka Street 6 Moscow, Russia 125047 +7 (495) 797 96 00
www.cushmanwakefield.ru