• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Retail Space across Russia 2012 - 2013

Retail Space across Russia 2012 - 2013



Report covers retail real estate development in major Russian cities.

Report covers retail real estate development in major Russian cities.



Total Views
Views on SlideShare
Embed Views



1 Embed 2

http://www.docseek.net 2



Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
Post Comment
Edit your comment

    Retail Space across Russia 2012 - 2013 Retail Space across Russia 2012 - 2013 Document Transcript

    • RETAIL SPACEACROSS RUSSIAA Cushman & Wakefield Research Publication 2012-2013
    • INTRODUCTION CONTENTS:The present report has been prepared by Cushman & RETAIL IN RUSSIA 3Wakefield in order to provide a retail real estate market PEOPLE 4overview of various Russian cities. RETAILERS 4By now, the country has reached the stage of post-crisis CITIES 5recovery. Traditionally, retail is considered a key driver of CITY INDEXeconomic growth. The country is huge, spreading through ASTRAKHAN 33several time zones, and each city has its own unique char-acter and real estate market dynamics. Consumer behav- BARNAUL 34ior varies across the country with many factors influencing CHELYABINSK 18a specific location: the level of economic development, EKATERINBURG 11welfare of the population, income level, purchasing habits, IRKUTSK 26etc. We trust that this report will serve as an introduction IZHEVSK 27to the retail real estate market in the present changing KAZAN 16environment. KEMEROVO 23The information used here is based on regular monitoringof cities, on Cushman & Wakefield‘s databases, on national KHABAROVSK 32and regional statistics, as well as on our own analysis. KRASNODAR 21 KRASNOYARSK 35 LIPETSK 36 MOSCOW 6 MOSOW REGION 10 NIZHNIY NOVGOROD 12 NOVOKUZNETSK 22 NOVOSIBIRSK 15 OMSK 14 ORENBURG 30 PERM 24 ROSTOV-ON-DON 17 RYAZAN 28 SAINT PETERSBURG 8 SAMARA 13 TOGLIATTI 25 TULA 29 TYUMEN 31 UFA 19 VLADIVOSTOK 37 VOLGOGRAD 20 TABLES 38
    • RETAIL SPACE ACROSS RUSSIA 2012-2013RUSSIA RETAIL SCENE RETAIL TURNOVER IN EUROPE (BN USD, 2011)While modern retail only appeared in Russia 10years ago, shopping soon became a cultural activity Croatia 16.605 Slovakia 18.36 Hungary 31.86 France 556.875for many. Over the last two decades, the country has Romania 32.535 Ireland 36.45 Czech Republic 42.12 Greece 50.895 Germany 548.1gone through a major cultural change, leaving be- Portugal 53.595 Finland 54.675hind many old habits and traditions. As a result, con- Denmark 60.21 Others** 60.615sumer behavior is still forming, thus retailers do not Norway 61.155 Austria 66.15 Russia 534.6only enjoy a rise in income but also face structural Sweden 94.5changes in consumer habits. The market is still very Belgium 97.875 United Switzerland 108.27 Kingdommuch in its infancy. Poland 110.025 459.54 NetherlandsAt the moment Russia is the largest market in 130.275 Spain 264.195 Italy 332.505 Turkey 170.1Europe with the third (after France and Germany)retail turnover in EMEA. Russia is still enjoying Source: GFK GeoMarketingpositive dynamics of GDP growth which is more than RUSSIAN RETAIL TURNOVER, %5% per year. Aviapark, Moscow 20% 15% 10% 5% 0% -5% -10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2006 2007 2008 2009 2010 2011 2012 Source: RosstatRUSSIAN RETAIL FORMATSShopping centres: Street Retail:Total existing quality stock in Russia totaled over 13.6 million sq Lack of buildings constructed for modern day retail (usually un-m GLA as at 1 April 2012 or 95 sq m per 1000 inhabitants, well der residential, poor shop depth, utility issues) and a limitedbelow the European average of 247 sq m. number of streets suitable for international brands.New ―world class‖ malls emerging. Most successful shopping Unsophisticated and opaque market – although signs of improve-malls have 100% occupancy with retailer waiting lists. ment being seen.The majority of quality projects are located in large cities, Climate restricts footfall. Though in many cities with populationsthough during recent years the activity of developers has also less than 500.000 people street retail still dominates due to lackgrown in cities with populations less than 500,000 people. of alternative opportunities. New retail formats: Big box: actively developing format, mainly in the hypermarket and DIY segments. Retail parks: the market is yet to see this format however de- velopers are considering due to the strong demand from the big box operators. Factory outlets: the first outlet project in Russia opened in 2012 with two more scheduled in Moscow for 2013. Developers are planning more due to retailer demand in this new format. E-commerce is actively developing – in 2011 nearly 6,1 million people purchased via the Internet (16.5% growth in comparison with previous year). According to experts, forecast retail turn- over in this segment will grow in 2012 by 36% in comparison with 2011.3
    • RETAIL SPACE ACROSS RUSSIA 2012-2013PEOPLE RETAILERSRussians are very heavy spenders. About 80% of all earnings end Russia has 58% of the key international brands, 51% of these areup in the shops. found in Moscow, placing it 11-th in European annual brand rep-Salaries are growing and currently the average salary in Russia resentation (CACI).reached $830 per month. Average personal debt is $1100. It is possible to enter the Russian market directly, though theIn cities like Moscow or St. Petersburg, over half of the population most common route is via franchise. One challenge faced bycan be considered as middle class while the average salary in Mos- brands, other than real estate, is finding and selecting local part-cow is over $1250 per month. ner. There are numerous groups with multiple internationalRecently growth of salaries in the public sector exceeded the brands and varying experience and capability to choose from.commercial sector resulting in a change of income structure and Big box retailers such as IKEA, OBI, and Auchan entered directly.an increasing number of people visiting shopping centers. Large quality retailers such as H&M, Inditex, Uniqlo, Mango gen-Russian people in general do not have a strong belief in savings erally have direct operations. A recent trend shows that brands,instruments and prefer material goods/ As the result decrease of especially in the luxury market, are breaking away from theirconsumer confidence in Russia often lead to increases in sales. local partners, examples include Chanel, Prada, Hermes and the Swatch Group.Future growth of the consumer credit sector offers upside toconsumer spending in Russia. Banks are actively offering credit The majority of retailers entering the Russian property marketcards in the region, which is affecting consumer habits. will lease property. Occupational leases are transparent and pro-Apart from economic factors, shopping in Russia has a cultural vide retailers with secure tenure, however are considered to beaspect to it: people in big cities do not have many options for more oriented toward the landlord.spending leisure time and shopping centers offer a very attractiveenvironment. As a result, footfalls have remained rather solid even  Major Russian Food Retailers:during an economic downturn. Х5 Retail Group, Sedmoy Kontinent, Dixi, O‘key, Lenta, Mag- nit, Monetka, Vester  Major Russian Non-Food Retailers: O‘stin, Oggi, Carlo Pazolini, Zolla, Lady & Gentelman, Snezhnaya Koroleva, Eldorado, M‘Video, Tekhnosila, Svyaznoy, Sportmas- ter, Metrika, Superstroy, Domocenter  International Retailers in Russia (a selection): Prada, Gucci, Chanel, CK, Hermes, Zara, GAP, Next, Banana Republic, American Eagle, Marks & Spencer, Mango, Uniqlo,RUSSIA CONSUMER PATTERN New Yorker, Bestseller, Reiss, H&M, Calzedonia, Adidas, Nike, Puma, Auchan, Stockman, Metro Group, MediaMarkt, Ikea, Cas- 110% 100% torama, OBI, Leroy Merlen, Kesko 90% 80%  Food & Beverage Operators: 70% McDonalds, Burger King, KFC, Starbucks, TGI Fridays, Wendy‘s, 60% Dunkin Donuts, Subway, Costa Coffee, Il Patio, Planeta Sushi, 50% Sbarro, Coffe House, Shokoladnitsa 40% 30% 20% 10% Since 2010 Tenant demand in Russia remains at a healthy level, 0% and is focused on established retail space offering high footfall -10% 2006 2007 2008 2009 2010 2011 2012 YTD and revenues. Large international and domestic retail chains Goods and services Obligatory payments Savings continued to expand and new entrants are expected. Currency purchase Money on hand growth Source:: RosstatCONSUMER CREDIT/GDP RATIO 120.0% 100.0% 80.0% Czech Bulgaria Germany 60.0% Spain France Italy 40.0% Russia UK 20.0% 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source:: EUROSTAT4
    • RETAIL SPACE ACROSS RUSSIA 2012-2013CITIES QUALITY RETAIL STOCK PER ‘000 INHABITANTSWhile the total population of Russia is 147 million people, over97 million people live in cities of various sizes. Salaries, spending 0 200 400 600 800and retail trade turnover are significantly higher in larger cities.There is a huge gap in the economy, social life and behavior of Moscowcitizens of cities with populations over 1 million and, for exam- St. Petersburgple, those with less than 500,000. NovosibirskWhen comparing cities, we group them according to their size: EkaterinburgMOSCOW Nizhny NovgorodBy far the biggest, and in terms of consumer behavior it is com-parable to Western European. There are more similarities be- Samaratween Moscow and, say London than between Moscow and OmskNovosibirsk. KazanMOSCOW REGION ChelyabinskMoscow Region is a conglomerate of smaller cities of roughly Rostov-on-Don100,000 people greatly influenced by Moscow. Many Moscowcitizens have a summer house and spend a lot of time here. Also, Ufamost of the settlements have strong transit traffic, thus these can Volgogradnot be considered as closed communities. PermST.PETERSBURG KrasnoyarskOften referred as the ―Northern capital‖. Its consumers are Voronezhmore conservative than those of Moscow, however this city is Saratovthe major tourist attraction in Russia due to its history and finearchitecture. Ranked second in terms of market size. Krasnodar“Millionic” Cities (population over 1 million) TolyattiThese are regional administrative centers with influential local Barnauladministrations. These cities are more or less prosperous de- Ulyanovskpendent on the industry specializations of their regions. IzhevskCities 500,000 + VladivostokThese cities have to rely on their own resources, and thus are Yaroslavlhighly dependent on their industry focus. Those which are spe-cialized on mining and exports generally do significantly better Irkutskthan the ones focusing on processing. Economic drivers are the Tyumenmost important to look at when evaluating. KhabarovskCities 300,000 - 500,000 OrenburgThese can range from rapidly developing markets to so-called Novokuznetskmono-cities, relying on one industry. Some cities are attractive Kemerovofor retail expansion while others have to develop first for severalyears. The latter group cannot be compared to similarly sized Ryazancities in Western Europe. AstrakhanCities 100,000 - 300,000 PenzaVery similar to the previous group but these cities are even less Naberegnie Chelniattractive due to their small market size, and inability to support Lipetskmajor developments. When looking at such cities it is importantto consider their surroundings and the transit traffic. TulaCities 50,000 - 100,000 “Millionic” Cities Cities 500,000 +In most cases such cities are either located close to bigger onesor are based on a single production facility. In both cases theyare too risky for any sort of modern retail development except The indicator is used as one of the tools for cities comparison in terms of the market saturation, level of competitionfor supermarkets. and market development. Estimation is based on the quality retail supply in each city. Projects with the following characteristics are considered: · recently constructed or reconstructed · total area of more than 20,000 sq m · professional concept · effective floor plans · anchor tenants · international and federal brands among retail gallery tenants Expert opinion of the Cushman and Wakefield specialists is to be mentioned among other parameters of the category defining which is applicable in some cases. Source: Cushman & Wakefield5
    • RETAIL SPACE ACROSS RUSSIA 2012-2013 MOSCOWMOSCOW After the collapse of the USSR, the whole new industry of modern retail was built from scratch with a major focus 2011 % Ref* on shopping malls.POPULATION, ‗000 inhabitants 11,514 832.3%RETAIL TRADE TURNOVER, mn USD 94,910 3147.5%  GUM is the oldest shopping centre in Moscow, opened in 1893 and located in front of the KremlinAVERAGE MONTHLY SALARY, USD 1,265 147.1% on the opposite side of the Red Square. It is anRETAIL STOCK, sq m/ 1,000 citizens 303 90.4% iconic place for any retailer. The exceptional his-*co mpared to Ekaterinburg (reference city fo r regio nal co mpariso ns) torical interiors and unique location attract luxury brands, such as Emporio Armani, Partizia Pepe,Moscow is the biggest consumer market in Russia. Ac- Alberta Feretti, Kenzo, Hugo Boss as well as suchcording to preliminary result of the 2010 census, 11.7 Zara, Moonson, Salamander on the upper floors.million people live in the city. In terms of retail sales, it isabout 5 times bigger than St. Petersburg and over 20  TSUM, developed in 1908 is the oldest departmenttimes bigger than other ―millionniki‖. store in Moscow. It‘s home to luxury brands, suchMuscovites are active consumers. They spend commonly as Yves Saint Laurent, Gucci, DKNY, Lanvin, Marcover 70% of everything they earn on retail. In recent Jacobs, Michael Kors, Alexander McQueen.times, people tend to spend more time in shops and malls  Evropeisky is one the most popular shopping cen-and it has become a cultural element of Moscow life. tres in Moscow. It is located near the Kievsky trainStreets (even prime corridors) are not well-suited for station and the busy Kievskaya tube station. It is ashopping, however high foot traffic keeps street retail home for most international retailers in Moscowrents high. Shopping malls are very popular in Moscow. from bridge brands to mass-market brands.The consumption boom and consumer inflation drive and  Metropolis shows the example of an extremelystimulate retail sales growth. Successful retail businesses popular centre in a secondary location. It providesare able to generate over $10,000 per sq m of annual a wide range of international retailers, most inter-sales turnover from each square meter. national brands are to be found there.There are 13 main retail streets in Moscow and 107  MEGA Malls are the developments of IKEA, whichquality shopping centres in Moscow. has become the largest retail developer in Russia Tverskaya Street is Moscow‘s busiest shopping with its MEGA shopping Malls. There are 3 MEGA street and a ―must to visit‖ pedestrian area for all stores located in the Moscow suburbs on the dif- visitors of the city. It enables a high foot flow and is ferent sides of the MKAD (Moscow ring road) – on the target street for ambitious mass-market the north (MEGA Khimki), east (MEGA Belaya Da- brands. Retailers include Zara, Benetton, Colin‘s. cha) and south (MEGA Teply Stan). Along with a retail gallery including the main mass-market and Stoleshnikov Pereulok and Petrovka Street are the mid-market brands each MEGA store includes an prime locations for luxury retailers (Louis Vuitton, IKEA store, Auchan hypermarket and other an- Chanel , Escada, Hermes). Among the new retailers chors. Most international mass-market brands are on Stoleshnikov are Lancel, Jimmy Choo, Miu Miu, situated in the MEGA stores. Prada. Metropolis GUM Tverskaya street6
    • RETAIL SPACE ACROSS RUSSIA 2012-2013MOSCOWThe vacancy rate for quality shopping centers in Moscow RETAIL SPACE. ‘000 SQ M GLAremains less than 1% since late 2010. Rental rates for retailgallery space in Moscow are in the range of $500-$4,000 (per sq Existing 3493m per year) depending on the size of the retail unit and the type Under Construction 1357of retailer. Rents for quality retail space are stable in Moscow forall sub-sectors. Demand for high streets and quality shopping Planned 2382centres should remain strong, with many retailers in expansionmode, While rents are largely expected to remain stable, further TOTAL, GLA, DELIVERYgrowth is possible in best Moscow shopping centers with a va- sq m sq mcancy rate close to zero in the most sought-after locations. EXISTING SELECTED RETAIL PROPERTIES Okhotny Ryad 68,000 24,500 1997 CLICK FOR MEGA Tyoply Stan 195,000 145,000 2002 INTERACTIVE RETAIL Atrium 112,000 35,610 2002 MAP ON THE WEB MEGA Khimki 238,000 177,000 2004 Erevan-Plaza 50,000 24,735 2006 2006- MEGA Belaya Dacha 146,935 120,913 2008 Evropeysky 180,000 54,000 2006 Golden Babylon 241,000 170,000 2009 Rostokino Metropolis 215,000 80,000 2009PRIME RENTAL RATE* IN QUALITY SHOPPING CENTER Vegas 398,000 130,000 2010RETAIL GALLERY , MOSCOW AFIMall City 179,423 114,213 2011 UNDER CONSTRUCTION $3,800 $3,750 Kaleidoskop 119,000 41,000 2012 $3,600 Otrada 100,000 85,000 2012 RIO (Leninskiy) 76,000 57,000 2013 $3,125 Mozaika 134,000 68,000 2013 $3,000 Aviapark / Hodinskoe $2,600 600,000 240,000 2013 Pole Project $2,500 Vesna! (Finstroy on 120,000 57,335 2014 Altufievskoe) 2006 2007 2008 2009 2010 2011 2012 Vegas City 231,253 113,402 2014 Vegas Kuntsevo 283,456 111,398 2014 VTB Arena* Base rental rate for 150-200 sq.m unit in the ground floor of retail gallery of prime Moscow shopping center, USD 169,700 49,000 2016per sq m per annum, triple net (Petrovskiy park) PLANNED Kapitoliy (Kuntsevo) 235,000 58,900 2013STREET RETAIL RENTAL RATES*, MOSCOW River Mall 258,155 91,200 2014(USD PER SQM PER ANNUM, TRIPLE NET) RENTAL RATES IN QUALITY SHOPPING CENTER RETAIL STREET USD/sq. m/annum 2012 TREND GALLERY, MOSCOW (USD PER SQM PER ANN UM, TRIPLE NET ) 1st Tverskaya Yamskaya $1,500 - $2 ,500 up BUSINESS GLA, SQ M Arbat $1,500 - $2,500 up RETAIL GALLERY MINI ANCHORS <100 100 - 300 300 - 800 800 - 1,500 Garden Ring $1,000 - $2,500 stable Kiosks $2,000 Kutuzovsky Prospekt $1,000 - $2,500 stable Cellphones $3,500 Kuznetsky Most $2,000 - $2,500 stable Drugstore $1,200- Leningradsky Prospekt $1,000 - $2,000 stable $1,500 $1,200- Banks Leninsky prospect $1,000 - $2,000 stable Restaurant $1,500 $1,200 $600-$1000 Prospect Mira $1,200 - $2,000 stable Textiles $1,200 $800 Novy Arbat $1,500 - $2,500 up Books $1,000 $500-$600 $400 $300 Petrovka $3,000 - $4,000 up Clothing and Footwear $1,200 $800 $600 $400 Pyatnitskaya $1,500 - $2,000 stable White and Brown $500 Tverskaya $3,500 - $4,500 up Supermarket $750 Stoleshnikov per. $3,500 - $4,500 up Source: Cushman & Wakefield7
    • RETAIL SPACE ACROSS RUSSIA 2012-2013 ST. PETERSBURGST. PETERSBURG The development of modern retail real estate in St. Pe- tersburg only started in 2006 and has resulted in the com- 2011 % Ref* pletion of a large amount of shopping centre space thoughPOPULATION, ‗000 inhabitants 4,849 350.5% it varies in quality. Given its large local population and rela-RETAIL TRADE TURNOVER, mn USD 22,557 748.1% tively high salary levels, the city is a target for expansion by a number of international and national Russian retail op-AVERAGE MONTHLY SALARY, USD 895 104.1% erators. As a result St. Petersburg is a city with one of theRETAIL STOCK, sq m/ 1,000 citizens 437 130.2% highest provisions of retail space per citizen in Russia.*compared to Ekaterinburg (reference city for regional comparisons) Shopping centers in the city can be defined by severalSt. Petersburg is Russias second-largest city and the most groups:important Russian port on the Baltic Sea. The city centre Mid and large-scale quality projects (GLA >50,000 sq m)is registered as a UNESCO World Heritage site as a re-sult of its beautiful architecture together with its network located closer to city borders (e.g., MEGA Dybenko,of canals and waterways. The consumer market is large MEGA Parnas, Raduga, Leto):and includes significant numbers of tourists to add to  Adjacent to the Moscow railway station, Galeriaspending by the local population. St. Petersburg‘s trans- (93,000sq.m GLA) houses high street brands such as To-portation infrastructure is not as well developed as Mos- shop, Levi‘s, Mexx and French Connection, supermarket,cow‘s so consumers prefer to work, go shopping and find food court, movie theatre, bowling alley and restaurants.entertainment close to their homes. People living in the When it opened in 2010 Galeria established a new stan-southern part of the city rarely visit the northern part and dard of quality in the St. Petersburg retail market.vice versa.  At the core of Nevsky Center is Stockmann GroupsThe main high street retail corridors are Nevsky Prospect, flagship department store in Russia. The Finnish-basedBolshoy Prospect and Zagorodny Prospect. Among others company Stockmann which has been operating in St. Pe-are 6-7 Lanes of Vasilievsky Ostrov, Vladimirsky and tersburg since 1993 opened the Stockmann Nevsky Cen-Moskovsky Prospects, Rubinstein Street, Sadovaya Street ter in 2010, including not only the Stockmann depart-and Malaya Sadovaya Street. ment store but also a multi-level shopping mall of some Nevsky Prospect is the focus of the city‘s retail, 45,000sq.m GLA behind a historic facade from the early entertainment and night life. The main tourist at- 19th Century. traction routes go through and near the street. It is Smaller shopping centers located in the center developed not only Nevsky Prospect itself, but also the adja- more than 5 years ago (and even earlier). There are only a cent smaller streets and lanes in the area close to it few of them due to the limited supply of development sites which are popular locations for shops, restaurants and to the serious restrictions on development and rede- and coffee shops (Maly and Bolshoy Konyushenny, velopment (such as Sennaya, PIK, Gostinny Dvor). Mikhailovskaya, Griboedova Canal, etc.). Luxury Middle and small-sized quality projects, majority of them brands are mixed with mass-market retailers. The located close to the city‘s center (e.g. June, Atmosphera, highest concentration of luxury brands is at the Rodeo Drive) which can be classified as neighborhood beginning of Nevsky Prospect (Bosco Di Ciliegi, centers targeting mostly their district. Kenzo, etc.) and Bolshaya Konishennaya street (DLT/TSUM, Louis Vuitton and others). Bolshoy prospect and Moscovsky prospect are strong retailing areas with a large local catchment population. Retailers on these streets include McDonalds, Levi‘s, Villeroy & Boch, Mascotte, Ile De Beaute, Salamander, Toto Group, Yves-Rocher, Carnaby and TJ Collection. Rubinshteina Street is a ―restaurant street‖ with a great variety of cafes, pubs, night clubs, theatres Stockmann Nevsky Nevsky Prospekt8
    • RETAIL SPACE ACROSS RUSSIA 2012-2013ST. PETERSBURG CLICK FOR INTERACTIVE RETAIL MAP RETAIL SPACE. ‘000 SQ M GLA ON THE WEB Existing 2119 Under Construction 364 Planned 188 SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING Grand Canion 150,000 53,000 2005 MEGA Parnas 130,000 84,000 2006 MEGA Dybenko 130,000 85,000 2006 Raduga-Piter 85,000 75,000 2007 Galeria 192,000 93,000 2010 Stockmann Nevsky 97,000 45,000 2010 Centre Leto 116,000 80,000 2011 RIO 70,000 52,500 2012 UNDER CONSTRUCTION Kontinent naAVERAGE RENTAL RATE* IN QUALITY SHOPPING 82,000 20,000 2012 BukharestskoyCENTER RETAIL GALLERY , MOSCOW Mezhdunarodniy 46,400 37,000 2012 $1,160 $1,170 Balkaniya Nova 74,500 18,600 2012 (phase 2) $1,130 Mandarin 85,000 38,250 2013 $1,090 Zhemchuzhnaya Plaza 140,000 45,100 2013 $1,000 PLANNED Clover Plaza 366,000 27,800 2013 Outlet Village 20,000 20,000 2014 2008 2009 2010 2011 2012 Pulkovo(Hines) Fashion House 37,000 28,000 2014* Base rental rate for 150-200 sq.m unit of retail gallery of quality St.Petersburg shopping center, USD per sq m perannum, triple net Apraksin Dvor 347,500 80,000 2016 Source: Cushman & Wakefield Leto MEGA Dybenko Galeria Source: Cushman & Wakefield9
    • RETAIL SPACE ACROSS RUSSIA 2012-2013 MOSCOW REGIONMOSCOW REGION RETAIL SPACE. ‘000 SQ M GLAThe Moscow Region is one of the largest in Russia with a 180,000 250 Populationpopulation of 6.64 million people. It includes 80 towns, 16 160,000 Population, 000 inhabitantsof which have over 100,000 inhabitants. About 83% of the 140,000 Under construction 200 GLApopulation lives in these towns, and 63% are of working Existing GLA 120,000age. 150 GLA, sq m 100,000Retail in the Moscow Region is different from Moscow.Average monthly income per capita is lower than in the 80,000 100capital. However, about 1 million people commute daily to 60,000Moscow. Also, many Muscovites tend to buy apartments 40,000 50or townhouses in the Moscow Region due to lower 20,000prices. 0 0 Sergiev… Solnechno… Orekhovo… Domoded…There is an on-going discussion that Moscow should be Electrostal Reutov Dmitrov Zelenograd Lytkarino Krasnogorsk Odintsovo Chekhov Lyubertsy Noginsk Stupino Zhukovsky Kolomna Podolsk Solntsevo Pushkino Balashikha Mytischi Klimovsk Vidnoemerged with the Moscow Region to ensure proper urbanplanning, but administrations on both sides resist this sug-gestion. SELECTED RETAIL PROPERTIESRetail market development is mostly within 50 km of the GLA,MKAD (ring road on the boundary of Moscow), due to CITY NAME DELIVERY sq mthe high-density population in this area. The retail marketof the Moscow Region can be seen from two angles: areas EXISTINGof development near the MKAD and distant developments Mytischi XL2 16,000 2003targeted at the region‘s towns. Shopping centers near the Mytischi XL3 25,000 2005MKAD that are aimed at Muscovites have larger retail Mytischi Krasny Kit 18,700 2006spaces and various types of stores. Shopping centers inmore distant areas are either small or of low quality. Mytischi Krasny Kit 18,700 2006 Electrostal Elgrad 45,000 2008Most large-scale projects are concentrated along the mainhighways; family shopping centers are generally located in Kolomna RIO 31,500 2008municipal centers with easy access. We expect that the Orekhovo- Orekh 16,000 2008southern part of the Moscow Region will be more sup- Zuevoplied with retail centers as it has the highest population Reutov Ekvator 15,000 2009density. Zhukovsky Aviator 18,750 2010Rental rates for retail gallery space in the Moscow Region Chekhov Karnaval 23,000 2011mostly correlate to those in Moscow ($500-$3,500 per Sergiev Posad Aprel 24,580 2011sq m per year) with some exceptions in districts with low Domodedovo Torgovy 22,500 2012potential. For anchor stores, rental rates on average are Krasnogorsk Kvartal June 15,000 2012the same as in Moscow.Taking into consideration the growing retail turnover, UNDER CONSTRUCTIONpersonal income and population, there is obviously a po- Mytischi June 75,000 2012tential for the development of more quality retail space. Mytischi Krasny Kit 2 35,000 2012Expansion of Moscow at the expense of the Moscow Re- SC on Korolev 22,500 2012gion will not change the retail scene dramatically as the KosmonavtovRegion is already very integrated with the capital. Krasnogorsk Komsomolec 15,000 2013 Stupino SC by Torgoviy 24,000 2013 Kvartal Source: Cushman & WakefieldXL 3 (Mitishi) Elgrad (Electrostal) RIO (Kolomna)10
    • RETAIL SPACE ACROSS RUSSIA 2012-2013―MILLIONNIC‖ CITIESEKATERINBURGCITYEkaterinburg is a large transport and logistics hub of theTrans-Siberian international transport corridor. It is anindustrial center (metallurgy, light and heavy machinery,military and chemical industries are the main economydrivers). It is the third business and production center ofRussia after Moscow and St. Petersburg, often being re-ferred to as the third capital of Russia. Ekaterinburg is thesecond in per-capita income and retail trade turnover aswell as the most expensive city in Russia after Moscow.SHOPPING CENTERS 2011The most active development of the retail market took POPULATION, ‗000 inhabitants 1,383place in 2006 and 2009 when the majority of quality shop- RETAIL TRADE TURNOVER, mn USD 3,015ping centers have been delivered. Thus, during the last fiveyears, the supply of quality retail space per inhabitant in- AVERAGE MONTHLY SALARY, USD 860creased 1.8 times. Although about half of quality shopping RETAIL STOCK, sq m/ 1,000 citizens 336centers were delivered during the crisis and the early re- RETAIL SPACE. ‘000 SQ M GLAcovery period (between 2009 and 2010), supply is stilllimited with further opportunities for development. Theshopping center pipeline is healthy with several centers Existing 464under construction. Under Construction 265RETAIL STREETSThe main street retail corridors are Lenina Prospect, Planned 241Vainera Street and 8 Marta Street. Low availability of qual-ity retail spaces both in shopping centers and in retail Source: Cushman & Wakefieldstreets is a reliable indicator of high retailer‘s interest inEkaterinburg.RETAILERSEkaterinburg is the third retail market for any retailer(after Moscow and St. Petersburg). Most of local and in- SELECTED RETAIL PROPERTIESternational retailers are already in the city. TOTAL, GLA, DELIVERYGreenvich sq m sq m EXISTING Park House 70,000 31,344 2005 MEGA - Ekaterinburg 135,500 100,000 2006 Greenvich (phase III) 70,000 49,000 2009 Alatir (Sedmoe Nebo) 80,000 37,000 2009 KomsoMall (Rock-n- 67,000 41,000 2010 Mall) UNDER CONSTRUCTION Evropeyskiy (former 104,000 70,397 2012 Prozma) Raduga Park (1 phase) 113,163 56,038 2012 Ekaterininsky 140,000 82,000 2014 Akademichesky (1 6,794,000 50,000 2015 phase) PLANNED Kirovsky district 50,000 30,000 2013 Greenvich (phase IV) 60,000 2014 Akademichesky (2 5,950,000 100,000 2030 phase) CLICK FOR INTERACTIVE RETAIL MAP Source: Cushman & Wakefield11
    • RETAIL SPACE ACROSS RUSSIA 2012-2013 ―MILLIONNIC‖ CITIESNIZHNIY NOVGORODCITYDue to its geographic location, Nizhniy Novgorod repre-sents a bridge between the European and Asian parts ofRussia. Traditionally it is an industrial and scientific centerwith a highly qualified workforce. It is one of the automo-bile production centers in Russia. The city has extensive,densely populated suburbs, the total agglomeration in-cludes about 2 million citizens which takes it to fourthplace in Russia by population (after Moscow and St.-Petersburg).SHOPPING CENTERS 2011 % Ref*Quality shopping centers are concentrated in the Nagor- POPULATION, ‗000 inhabitants 1,260 91.1%naya part of the city, whereas Zarechny part and Zaokskydistrict are lacking quality shopping centers. A number of RETAIL TRADE TURNOVER, mn USD 2,735 90.7%notable projects being frozen during the crisis might come AVERAGE MONTHLY SALARY, USD 719 83.6%to the market soon. RETAIL STOCK, sq m/ 1,000 citizens 297 88.4%RETAIL STREETS *compared to Ekaterinburg (reference city for regional comparisons)The major street retail areas are located along Maksima RETAIL SPACE. ‘000 SQ M GLAGorkogo Street and Belinskogo Street in the Nizhe-gorodskiy district, and along Sormovskoe shosse in theSormovskiy district. There is a small pedestrian zone in Existing 374the city center (Pokrovskaya Street) that has a number ofstreet shops and different cafes and restaurants. The al- Under Construction 140ready-existing quality centers are fully occupied. Planned 52RETAILERSThe main retail operators, such as Auchan, IKEA, OBI, Source: Cushman & WakefieldSportmaster, Real, Perekrestok, Detskiy Mir, M.Video,Metro Cash & Carry, Starik Khottabych, Karusel, are al-ready present in the city. SELECTED RETAIL PROPERTIES Shokolad TOTAL, GLA, DELIVERY sq m sq m EXISTING Etazhi 28,200 16,300 2003 Shokolad 25,240 16,831 2003 Respublika 34,000 22,100 2005 Zolotaya milya 32,000 17,500 2006 MEGA - Nizhnyi 130,000 101,000 2006 Novgorod Fantastika 160,000 87,000 2008 NASH (former Sormovskiy (Mosmart 38,400 32,300 2011 Jelmoli)) Sedmoe Nebo 80,000 60,800 2012 UNDER CONSTRUCTION RIO (Ogni Stolizy) 100,000 68,000 2012 Nebo 132,416 72,000 2013 PLANNED Power Center 117,000 52,000 2013 CLICK FOR INTERACTIVE RETAIL MAP Source: Cushman & Wakefield12
    • RETAIL SPACE ACROSS RUSSIA 2012-2013―MILLIONNIC‖ CITIESSAMARACITYSamara is the largest city of the Volga region. Its grossregional production includes metal work, machinery, elec-tronic and optical products, and aircrafts. Transport infra-structure includes railroads, river transport (by Volga,which is the main transport river in the central Russia),the international airport Kurumoch, and federal highways(M5, M32).SHOPPING CENTERSThere are several clusters where the majority of shoppingcenters are concentrated – about 15 of them are located 2011 % Ref*along Moskovskoye Shosse and 6 more are on Novo- POPULATION, ‗000 inhabitants 1,165 84.2%Sadovaya Street. The biggest project in the city is MegaSamara. Opening of the shopping center has been delayed RETAIL TRADE TURNOVER, mn USD 2,662 88.3%several times since 2007. It was finally opened in AVERAGE MONTHLY SALARY, USD 681 79.2%2011.Currently a number of announced large-scale pro- RETAIL STOCK, sq m/ 1,000 citizens 442 131.6%jects are on hold due to different reasons. The pipeline is *compared to Ekaterinburg (reference city for regional comparisons)not noticeably high. RETAIL SPACE. ‘000 SQ M GLARETAIL STREETSLeningradskaya Street as well as Kyibisheva, Molodog-vardeiskaya, Samarskaya streets are among the most Existing 514popular retail corridors. Under ConstructionRETAILERSMain retail chains such as Perekrestok, Pyaterochka, Eldo- Planned 14rado, M.Video, Sportmaster, METRO Cash&Carry,Auchan, IKEA, Media Markt, Leroy Merlen are currently in Source: Cushman & Wakefieldthe city. SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING Moskovsky (Mega 140,000 79,000 1996 Complex) Park House Phase I 20,600 17,800 2002 Kosmoport KC-92 23,200 15,800 2006 Mega City 52,400 36,000 2006 Bristol 30,360 22,581 2007 Park House Phase II 36,000 27,400 2007 Kosmoport 127,000 101,000 2007 Most 27,200 23,120 2009 Samolet 42,739 32,054 2010 Viva Land 68,000 47,600 2010 MEGA - Samara 130,500 102,000 2011 PLANNED Clover Citycenter 82,800 13,800 2014 CLICK FOR INTERACTIVE RETAIL MAP Source: Cushman & Wakefield13
    • RETAIL SPACE ACROSS RUSSIA 2012-2013 ―MILLIONNIC‖ CITIESOMSKCITYOmsk is the second largest city in the Asian part of Russia,after Novosibirsk. The importance of the city has beengrowing with development of the Transsib railroad con-necting central Russia with Siberia, and now it is the mainlogistic route in the region. Now Omsk is considered asignificant industrial center (metal, chemical, petrochemi-cal, space industries).SHOPPING CENTERSCompared to other cities with populations over 1 million,Omsk‘s share of quality shopping centers is not large. The 2011 % Ref*delivery of MEGA SC at the end of 2009 doubled the ex- POPULATION, ‗000 inhabitants 1,154 83.4%isting quality stock and noticeably restructured the retail RETAIL TRADE TURNOVER, mn USD 1,353 44.9%space in the city. Most quality retailers are located there,and some of them even closed other stores in other loca- AVERAGE MONTHLY SALARY, USD 636 74.0%tions in the city. There is a significant list of announced RETAIL STOCK, sq m/ 1,000 citizens 336 100.2%retail projects but most of them are currently on hold. *compared to Ekaterinburg (reference city for regional comparisons)RETAIL STREETS RETAIL SPACE. ‘000 SQ M GLAThe main retail streets in the city are Lubinsky Prospect (apart of Lenina Street) in the historic city center, which is Existing 388planned to become a pedestrian area soon, and TorgovayaStreet located near the largest open market of the city. Under Construction 122RETAILERS Planned 101Most retailers are concentrated in MEGA and the majorityof them are MEGA partners such as IKEA, Auchan, Leroy Source: Cushman & WakefieldMerlin, Media Markt, Sportmaster, Adidas, Mango, Ecco,Zara, Bershka, etc. MEGA - Omsk SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING Kontinent 206,200 160,000 2001 Kaskad 32,000 21,000 2005 AT-market 45,000 32,000 2007 MEGA - Omsk 170,000 127,300 2009 Millenium 68,000 23,000 2010 Festival (Astore Plaza) 36,000 25,000 2010 UNDER CONSTRUCTION Mayak (phase III) 28,000 18,750 2012 Arena Mall 135,000 103,000 PLANNED CLICK FOR INTERACTIVE RETAIL MAP Park 300-letia Omska 90,000 34,517 2016 Source: Cushman & Wakefield14
    • RETAIL SPACE ACROSS RUSSIA 2012-2013―MILLIONNIC‖ CITIESNOVOSIBIRKCITYNovosibirsk is the third city in Russia by population (afterMoscow and St.-Petersburg), the cultural, economic andindustrial center of Siberia. Novosibirsk is located at thecenter of important trade corridors (Middle Asia, South-East Asia, Northern Russia, Russia‘s Far East, Europe) andthe largest logistics hub in Siberia, with high-quality ware-houses and regional logistics centers. Retail turnover inthe city is on the fourth place in Russia.SHOPPING CENTERSThere are several large-scale quality shopping centers in 2011 % Ref*the city, including MEGA, Sibirky Mall and Aura retail cen- POPULATION, ‗000 inhabitants 1,474 106.5%ters. Retail stock grew up even in the crisis period - sev-eral quality shopping centers were delivered, such as RETAIL TRADE TURNOVER, mn USD 2,892 95.9%Golden Park, Versal and Aura. The pipeline is healthy - a AVERAGE MONTHLY SALARY, USD 770 89.5%number of shopping centers are in pipeline, but the major- RETAIL STOCK, sq m/ 1,000 citizens 216 64.4%ity of them are on the planning stage. International inves- *compared to Ekaterinburg (reference city for regional comparisons)tors, developers and consultants are involved in new de-velopments in the city. The city is in high demand among RETAIL SPACE. ‘000 SQ M GLAretail operators.RETAIL STREETS Existing 318The main retail corridors in the city are Vokzalnaya Magis- Under Construction 45tral, Krasniy Prospect and Karl Marx Square and Prospect.There is a unique retail area on Karl Marks Prospect, Planned 221where about 50 footwear stores are located in a 500meter stretch of the street. Source: Cushman & WakefieldRETAILERS SELECTED RETAIL PROPERTIESMany international and well-know Russian retailers are in TOTAL, GLA, DELIVERYthe city. MediaMarkt, Home Center, Metro Cash & Carry, sq m sq mAuchan, Okey, Lenta, Bachetle are among them. EXISTING Royal Park Royal Park 70,000 35,000 2007 MEGA - Novosibirsk 140,000 103,000 2007 Kontinent-3 26,600 19,800 2008 Sibirskiy Mall 67,000 40,000 2008 Golden Park 30,000 18,000 2010 Versal 40,000 18,875 2010 Sun City (OMEGA 86,500 23,600 2011 Plaza) Aura 150,574 60,439 2011 UNDER CONSTRUCTION Evropeyskiy 87,000 45,000 2013 PLANNED Plotina 27,400 15,000 2013 Planeta 175,000 71,000 2013 Clover Citycenter, 1st 90,450 36,660 2014 phase Berdskoe SC on 65,000 61,000 2014 Shosse TSUM reconstruction 113,204 37,258 CLICK FOR INTERACTIVE RETAIL MAP Source: Cushman & Wakefield15
    • RETAIL SPACE ACROSS RUSSIA 2012-2013 ―MILLIONNIC‖ CITIESKAZANCITYKazan is the capital of Tatarstan, one of Russia‘s mosteconomically developed regions. Historically Kazan hasdeveloped as one of the major scientific, educational, andindustrial centers of Russia. Tatarstans economy dependsmostly on oil, which accounts for approximately 40% of alltax proceeds. Kazan is one of the main logistic centers inRussia with the high development potential.SHOPPING CENTERSBooming development in 2004 and 2005, which happenedin view of the 1000th anniversary of Kazan, provided thecity with more than 300 sq m of quality retail space per 2011 % Ref*1,000 inhabitants. Some experts consider Kazan‘s retail POPULATION, ‗000 inhabitants 1,144 82.7%market as being close to saturation but the city is not in RETAIL TRADE TURNOVER, mn USD 2,313 76.7%the leading position among 1 mn+ cities yet. The share ofnon-quality retail premises in the general supply is still AVERAGE MONTHLY SALARY, USD 639 74.3%high. Such developments require reconstruction to com- RETAIL STOCK, sq m/ 1,000 citizens 335 99.7%pete with modern projects. *compared to Ekaterinburg (reference city for regional comparisons)Among significant developments in Kazan are: Korston RETAIL SPACE. ‘000 SQ M GLAPark Hotel (retail-entertainment center with hotel facili-ties by Korston Hotel Group), Park-House and MEGAshopping centers, etc. Existing 382RETAILERS Under Construction 8Many international, national and local companies do busi- Plannedness in Kazan, e.g. IKEA, METRO Cash&Carry, SPAR,Perekrestok, Edelveys-group, TatgazInvest and etc. Source: Cushman & Wakefield SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING City-Center 24,000 19,200 2004 XL 40,000 25,000 2004 Park House Tandem 67,000 43,000 2005 MEGA - Kazan 120,000 92,500 2005 Korston Hotel & Mall 71,951 16,788 2006 Kazan Suvar Plaza 60,000 17,400 2006 (Spartakovskiy) Koltso (Grand Hotel 86,800 23,560 2006 Kazan) Park House 70,000 49,500 2007 Uzhny 78,000 46,800 2011 GUM (reconstruction) 14,150 13,000 2012 PLANNED CLICK FOR INTERACTIVE RETAIL MAP XL-2 12,000 7,800 2014 Source: Cushman & Wakefield16
    • RETAIL SPACE ACROSS RUSSIA 2012-2013―MILLIONNIC‖ CITIESROSTOV-ON-DONCITYRostov-on-Don is the administrative center of the Rostovregion and the Southern Federal District. It is the largestscientific, cultural, and logistic center in southern Russia.The economy of the region is diversified by many sectors.Significant shares are presented by manufacturing andtrade companies, e.g. Rosselmash, Coca-Cola, Frito LayManufacturing, etc.However, a substantial share in the economy of the regionis presented by agricultural enterprises, which is a riskfactor for the local economy, as agriculture depends onfavorable weather conditions. 2011 % Ref*SHOPPING CENTERS POPULATION, ‗000 inhabitants 1,090 78.8%The catchment area of Rostov is far beyond it‘s geographi- RETAIL TRADE TURNOVER, mn USD 2,221 73.7%cal borders and includes several satellite and regional cit- AVERAGE MONTHLY SALARY, USD 693 80.6%ies like Taganrog, Aksay, Novocherkassk, Bataisk. In the RETAIL STOCK, sq m/ 1,000 citizens 347 103.3%last 5 years, quality retail centers were delivered inRostov. The retail centers are located in the central, cen- *compared to Ekaterinburg (reference city for regional comparisons)tral-northern administrative parts of the city as well as in RETAIL SPACE. ‘000 SQ M GLAone of the biggest residential suburbs Zapadny. Amongannounced large-scale projects, the most notable is theVsplesk multifunctional complex which is planned to be Existing 378developed during the coming years. Under Construction 101RETAILERS Planned 70Major European retailers are present in the city, e.g. IKEA,METRO Cash&Carry, Okey, Auchan, Castorama, LeroyMerlin. Source: Cushman & Wakefield SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING Gorizont Megacentr 132,730 98,548 2005 Sokol 26,000 13,500 2007 MEGA - Rostov 130,000 105,300 2007 Taler (Phase I) 25,420 18,600 2009Gorizont Megacentr Megamag phase I 40,300 30,000 2009 Golden Babylon 80,000 52,000 2009 (Kalinka Malinka) Gorizont Megacentr RIO (Shokolad) 78,000 45,000 2012 UNDER CONSTRUCTION Millenium 2 (Clover 59,976 6,975 2012 Group Project) Taler (Phase II) 35,000 18,000 2013 Zolotoy 51,000 36,000 2014 PLANNED Vsplesk 212,100 70,000 2014 CLICK FOR INTERACTIVE RETAIL MAP Megamag phase II 45,000 40,000 2014 Source: Cushman & Wakefield17
    • RETAIL SPACE ACROSS RUSSIA 2012-2013 ―MILLIONNIC‖ CITIESCHELYABINSKCITYChelyabinsk is a large industrial, financial, scientific andcultural center of the Southern Urals and is a significanttransport hub for the Transsib railroad, several federalhighways and an international airport. During World WarII many factories were relocated from Central Russia toChelyabinsk, thus the city became an important industrialcenter (metallurgy, machinery, metalworking, fuel andenergy).SHOPPING CENTERSThe majority of projects are developed by local compa- 2011 % Ref*nies. Lack of suitable land plots in the center of the city POPULATION, ‗000 inhabitants 1,130 81.7%and strong control from the local administration in parcel-ing and construction permits are among the main factors RETAIL TRADE TURNOVER, mn USD 1,781 59.1%influencing the resistance of market development. Most of AVERAGE MONTHLY SALARY, USD 675 78.6%the existing shopping centers are of medium size and are RETAIL STOCK, sq m/ 1,000 citizens 277 82.5%targeted at neighboring districts. *compared to Ekaterinburg (reference city for regional comparisons)RETAIL STREETS RETAIL SPACE. ‘000 SQ M GLAThe city has a well-developed historical city center with apedestrian area (Kirova street). Street retail is concen-trated around Revolution Square, Kirova Str., Lenina Str., Existing 314Svobody Str., Truda Str., K.Marksa Str. which are all lo- Under Constructioncated in a compact territory.RETAILERS Planned 162Some federal and international retailers are in the city:Auchan, METRO Cash&Carry, Perekrestok, Pyaterochka, Source: Cushman & WakefieldSedmoi Kontinent, etc.Kuba SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING Focus 70,000 58,000 2006 Gorki 55,000 38,000 2007 Severo-Zapadny 27,000 22,650 2008 Kuba 50,000 26,000 2008 Zapadny luch 18,000 2010 Koltso 43,240 28,000 2011 Rodnik 135,000 58,000 2011 Fiesta 86,000 64,500 2011 PLANNED Retail Park 80,000 72,000 2014 Almaz 200,000 90,000 2014 CLICK FOR INTERACTIVE RETAIL MAP Source: Cushman & Wakefield18
    • RETAIL SPACE ACROSS RUSSIA 2012-2013―MILLIONNIC‖ CITIESUFACITYUfa, the capital of Bashkortostan, is one of the most de-veloped cities in Russia. The main industries are oil andgas, machinery, transport and trading. Quality shoppingcenters began appearing in the city in 2003. At the mo-ment, eleven shopping centers might be classified as qual-ity. MEGA Ufa is the biggest retail project in the city withmore than 100,000 sq m of leasable area.SHOPPING CENTERSOlder shopping centers like Soviet-style departmentstores are very popular in the city (such as UFA SC). Re- 2011 % Ref*tail market is also represented by modern shopping cen- POPULATION, ‗000 inhabitants 1,062 76.8%ters which are closer to open marketplaces by concept aswell as tenant mix. RETAIL TRADE TURNOVER, mn USD 1,541 51.1%RETAIL STREETS AVERAGE MONTHLY SALARY, USD 727 84.6%Street retail is rather poor, which is typical for Russian RETAIL STOCK, sq m/ 1,000 citizens 296 88.1%cities, there are no streets with high foot traffic. The main *compared to Ekaterinburg (reference city for regional comparisons)retail street is Prospect Oktyabrya, but the density of RETAIL SPACE. ‘000 SQ M GLAshops is not too high.RETAILERS Existing 314There are a lot of Russian and international retail chainsand well-known brands in the city (METRO Cash&Carry, Under Construction 141Karusel, GlobusGurme, Eldorado, Technosila, M.Video, Planned 145C&A, Esprit, Lady&Gentleman City, Sportmaster, In-tersport, L‘Etoile and others). At the same time, the geo-graphic location of the city is one of the difficulties for the Source: Cushman & Wakefieldnew retailers entering the market.June SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING MIR 50,375 22,347 2004 Iremel 51,550 26,200 2006 Semya Yuzhniy Polus (phase II) 30,000 20,000 2008 Semya 72,300 32,291 2008 Tsentralny SC 41,621 27,000 2011 MEGA - Ufa 141,800 114,700 2011 June 42,000 25,500 2012 UNDER CONSTRUCTION M7 Mall 64,325 2013 UfaPlaza 55,000 31,000 2013 Planeta 150,000 110,000 2013 PLANNED Clover Plaza 87,250 14,500 2015 CLICK FOR INTERACTIVE RETAIL MAP Source: Cushman & Wakefield19
    • RETAIL SPACE ACROSS RUSSIA 2012-2013 ―MILLIONNIC‖ CITIESVOLGOGRADCITYVolgograd is located in the South-East of European Russia.The city entered the list of cities with population of 1 mil-lion and above in 2011. Now the city holds 12 th place inthe population list of Russia.The city expanded for over 90 km along the Volga river.The major part of the city is situated on its right bank.The city includes a couple of islands and has a satellite onthe opposite bank called Volzhsky.SHOPPING CENTERSVolgograd has 241 sq m per 1,000 inhabitants of quality 2011 % Ref*retail space, one of the lowest ratios among cities with POPULATION, ‗000 inhabitants 1,021 73.8%populations of 1 million and above. Nevertheless, the mar- RETAIL TRADE TURNOVER, mn USD 1,919 63.7%ket now is close to saturation due to low personal dispos-able income and thus, low purchasing power. The existing AVERAGE MONTHLY SALARY, USD 602 70.1%quality retail stock comprises about 245,000 sq m of retail RETAIL STOCK, sq m/ 1,000 citizens 241 71.7%space, represented by 9 quality projects. The largest is *compared to Ekaterinburg (reference city for regional comparisons)KomsoMall with a GLA of about 70,000 sq m completedrecently this year. The existing premises are located close RETAIL SPACE. ‘000 SQ M GLAto the city‘s center, leaving the suburbs without supply.Aquarel‘ project with GLA of about 90,000 sq m is cur- Existing 245rently under construction (that will be the biggest shop- Under Construction 92ping center in the city, delivery is scheduled for 2013).As for the end of 2012, non-quality retail premises still Planned 104dominate the market. Source: Cushman & Wakefield SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING KomsoMall Park House 68,000 27,300 2003 Diamant Dzerzhinsky 45,052 31,280 2006 Esplanada 40,000 28,000 2007 Europa City Mall 44,496 27,571 2008 Voroshilovskiy SC 48,000 29,500 2008 (renovation) KomsoMall (Slava) 104,000 68,000 2012 UNDER CONSTRUCTION Aquarel 121,834 92,140 2013 PLANNED Esplanada 53,500 35,200 2014 CLICK FOR INTERACTIVE RETAIL MAP Global City 168,000 36,000 2014 Source: Cushman & Wakefield20
    • RETAIL SPACE ACROSS RUSSIA 2012-2013Cities 500,000 +KRASNODARCITYKrasnodar, the major logistic hub of Southern Russia, isthe center of the Krasnodar region. The host city of the2014 Winter Olympics, Sochi, is located in the region. Keysectors of Krasnodar economy are food, machinery, met-alworking, forest industries, and tourism.SHOPPING CENTERSThe construction of modern retail premises in Krasnodarstarted in 2000. Krasnodar benefits from a number ofquality shopping centers, including Krasnaya Ploschad,MEGA, City-Center, Galaktika, and SBS Megamall. 2011 % Ref*A new large-scale project—OZ shopping center (GLA POPULATION, ‗000 inhabitants 833 60.2%169,000 sq m) - was recently delivered to the market, RETAIL TRADE TURNOVER, mn USD 2,460 81.6%strengthening the leading position of the city among allRussian cities by the indicator of quality retail stock per AVERAGE MONTHLY SALARY, USD 744 86.5%1,000 citizens. RETAIL STOCK, sq m/ 1,000 citizens 763 227.4%RETAIL STREETS *compared to Ekaterinburg (reference city for regional comparisons)Main retail corridors in Krasnodar are Krasnaya, Sever- RETAIL SPACE. ‘000 SQ M GLAnaya and Stavropolskaya streets.RETAILERS Existing 635The majority of federal and international brands are al-ready present in the city, such as Leroy Merlin, IKEA, Ex- Under Construction 26pert, Auchan, Domo, Eldorado, Expert, Sportmaster, Planned 109O‘Key, M.Video, Perekrestok, Detskiy Mir, METRO Cash& Carry, Ile de Beaute, Magnit, Media Markt, Castorama. Source: Cushman & WakefieldLocal retailers are represented by such brands as Tabris,and Sport Style. SELECTED RETAIL PROPERTIES SBS Megamall TOTAL, GLA, Oz Mall DELIVERY sq m sq m EXISTING Krasnaya Plosсhad 105,000 70,000 2006 (Red Square) Galerea Krasnodar 94,800 38,800 2008 MEGA 150,000 101,000 2008 Galaktika 132,000 80,000 2009 SBS Shopping Mall 180,400 105,000 2009 Krasnaya Plozhad 70,000 50,000 2012 (3 phase) Oz Mall 227,000 169,000 2012 UNDER CONSTRUCTION Galerea Krasnodar 60,000 26,000 2013 (2 phase) PLANNED Power Center 37,600 33,650 2013 Krasnodar 155,118 74,862 CLICK FOR INTERACTIVE RETAIL MAP (DVI Group project) Source: Cushman & Wakefield21
    • RETAIL SPACE ACROSS RUSSIA 2012-2013 Cities 500,000 +NOVOKUZNETSKCITYNovokuznetsk is an industrial city located in the Ke-merovo region with a population of 563,500 people. It isone of the biggest metal and mining centers in Russia. TheNovokuznetsk agglomeration is formed with nearby cities,and totals more than 1 million people. The city‘s economyis being rapidly developed.SHOPPING CENTERSModern retail properties present in the market are Nika,Globus, Kometa and Sibirsky Gorodor shopping centers. 2011 % Ref*Most of supply is located in the central district, whereasresidential neighborhoods are still poorly developed. POPULATION, ‗000 inhabitants 548 39.6%There is a strong deficit of quality retail space in the city RETAIL TRADE TURNOVER, mn USD 685 22.7%and the pipeline is poor. AVERAGE MONTHLY SALARY, USD 647 75.2%The last modern shopping center has been delivered in RETAIL STOCK, sq m/ 1,000 citizens 98 29.3%2008 and the pipeline is poor. *compared to Ekaterinburg (reference city for regional comparisons)RETAIL STREETS RETAIL SPACE. ‘000 SQ M GLAStreet-retail corridors are Kirova Street, Kurako, Druz-hby, Metallurgov, Oktyabrsky, and Togliatti prospects, Existing 54where the majority of shops, cafes and restaurants arelocated. Under Construction 63RETAILERS PlannedNational and international retail chains are not widelypresented in the city. Local chains include Maria-Ra, Chi- Source: Cushman & Wakefieldbis, Solnyshko. Federal chains are presented by Eldorado,DOMO, Sportmaster, Champion, M.Video, Technosila,DNS. Some other national retailers consider the possibil-ity of opening their stores in Novokuznetsk due to lowcompetition and high potential of the city for retail con-sumption. The lack of the pipeline and low income of citi-zens are strong barriers for new retailers. Nika SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING Nika 18,750 12,790 2003 Globus 19,215 13,370 2005 Sibirskiy Gorodok 22,040 14,700 2007 Kometa (Palmira) 16,440 13,000 2008 UNDER CONSTRUCTION Citi-Mall 90,000 63,000 CLICK FOR INTERACTIVE RETAIL MAP Source: CBR, BBA Libor22
    • RETAIL SPACE ACROSS RUSSIA 2012-2013Cities 500,000 +KEMEROVOCITYKemerovo is the administrative center of KemerovskayaOblast. The city‘s economy is represented by chemicaland coal industries.At the beginning of 2011 the quality retail stock of Ke-merovo accounted for about 120,000 sq m GLA, or about233 sq m GLA, per 1,000 inhabitants.SHOPPING CENTERSThe quality retail market of Kemerovo is well-developed,as there are seven shopping centers. The largest and themost advanced of them are Grinvich (24,750 sq m GLA) 2011 % Ref*and Laplandia (45,000 sq m GLA), both delivered in 2007. POPULATION, ‗000 inhabitants 533 38.5%However, with the delivery of the third phase of Prome- RETAIL TRADE TURNOVER, mn USD 1,118 37.1%nad in the first quarter of 2008 (GLA 9,750 sq m) and the AVERAGE MONTHLY SALARY, USD 734 85.4%financial crisis of 2008, all quality retail projects were puton hold. There are no new quality shopping centers deliv- RETAIL STOCK, sq m/ 1,000 citizens 209 62.4%ered after 2008 and the pipeline is poor. *compared to Ekaterinburg (reference city for regional comparisons)RETAIL STREETS RETAIL SPACE. ‘000 SQ M GLAThe main retail streets are Boulevard Stroiteley, Sovietskyand Lenina prospects. Existing 112RETAILERSCurrently, there are no noticeable on-going retail devel- Under Construction 25opments in the city . At the same time, the rising rentalrates and shrinking vacancies are obvious forerunners for Planned 63the revival of quality retail developments. Source: Cushman & WakefieldThe population‘s income is relatively high, but the strongdeficit of the quality retail space prevents retailers to ex-pand to Kemerovo. Laplandiya SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING Promenad - 1 17,500 11,375 2004 Ya 25,000 17,964 2006 Grinvich 33,800 24,750 2007 Laplandiya 68,600 40,000 2007 UNDER CONSTRUCTION Grand City 35,500 24,800 2014 PLANNED CLICK FOR INTERACTIVE RETAIL MAP Izumrud 115,000 63,250 2014 Source: Cushman & Wakefield23
    • RETAIL SPACE ACROSS RUSSIA 2012-2013 Cities 500,000 +PERMCITYPerm is one of the largest cities in the Ural region. It is alarge, diversified industrial center, with the main industriesbeing heavy industry, machine engineering, chemicals andpetrochemicals. It is stretched along the Kama River forabout 70 km, and suburb districts are isolated from therest of the city as a result.SHOPPING CENTERSUp until 2008 the retail market development in the citywas active: all quality shopping centers were constructedbefore this period. Strong administrative control of the 2011 % Ref*retail market as well as other business sectors influence POPULATION, ‗000 inhabitants 992 71.7%market development (i.e. some international and federalplayers had difficulties with entering the market). Low- RETAIL TRADE TURNOVER, mn USD 1,619 53.7%quality Soviet type shopping centers Almaz and TsUM are AVERAGE MONTHLY SALARY, USD 747 86.9%among the most popular shopping destinations in the city RETAIL STOCK, sq m/ 1,000 citizens 152 45.1%because they are located in the center of the city and are *compared to Ekaterinburg (reference city for regional comparisons)historically known as shopping places.The pipeline is limited to one large-scale project, which is RETAIL SPACE. ‘000 SQ M GLAunder construction and several projects in the planningstage. Existing 150RETAIL STREETS Under Construction 75The main retail corridors in the city are Lenina Street andKomsomolsky Prospect. Planned 66RETAILERS Source: Cushman & WakefieldThere is a lack of quality retail premises in Perm, and as aresult a limited range of national and international brands. SELECTED RETAIL PROPERTIES Stolitsa TOTAL, GLA, DELIVERY sq m sq m EXISTING Semya phase 1 28,656 17,145 2004 Stolitsa 32,000 28,000 2004 Almaz 41,000 33,000 2005 Kolizey Cinema 30,473 14,000 2007 Shokolad 25,000 19,700 Total, Retail, 2008 Delivery sq m sq m Semya phase 2 Existing40,000 28,000 2008 Semya 2004 28,656 17,145 Stolitsa 2004 32,000 28,000 UNDER CONSTRUCTION Semya phase 2 2008 40,000 28,000 Kolizey Cinema 2007 32,000 14,000 SC on Speshilova 107,508 75,000 2013 Shokolad 2008 25,000 19,700 Under Construction PLANNED Planned Semya phase 3 20,000 14,000 CLICK FOR INTERACTIVE RETAIL MAP Colizey Gallery 75,000 52,500 Source: CBR, BBA Libor24
    • RETAIL SPACE ACROSS RUSSIA 2012-2013Cities 500,000 +TOGLIATTICITYTogliatti is well-known in Russia due to the AVTOVAZauto plant which employs a considerable part of the city‘spopulation. Unlike traditional perception, the city econ-omy is driven by several industries: oil and gas, chemical,construction materials, food industries and banking.Togliatti Azot is another economic driver and one of theworld‘s biggest ammonia producers (8% of the world pro-duction). Financial institutions in Togliatti were acknowl-edged by RA Expert for its rapidly growing capital e.g.AvtoVAZ Bank and FiaBank.SHOPPING CENTERS 2011 % Ref*Development of the retail sector in the city is running POPULATION, ‗000 inhabitants 720 52.0%ahead of the office and warehouse sectors. Since Soviet RETAIL TRADE TURNOVER, mn USD 919 30.5%times Rus‘ shopping mall used to be the largest and most AVERAGE MONTHLY SALARY, USD 574 66.7%attractive retail center for the citizens and visitors fromother cities of the Samara region. In 2008 Rus‘ was com- RETAIL STOCK, sq m/ 1,000 citizens 275 82.0%pletely renovated into five-story retail center (GLA - *compared to Ekaterinburg (reference city for regional comparisons)70,000 sq m). Traditionally, retail activity was higher in RETAIL SPACE. ‘000 SQ M GLAAvtozavodsky district of the city, where Rus‘ is located.This trend continued with the construction of the firstretail and entertainment project—Vega (GLA - 22,000 sq Existing 198m). Though during next 7 years many other retail centers Under Constructionappeared in the Central and Komsomolsky districts, AV-TOVAZ district remains the main area of retail attraction. PlannedThere is no quality retail pipeline in the city up to 2016.RETAILERS Source: Cushman & WakefieldMajor chains like Perekerstok, Pyaterochka, M.Video, El-dorado, L‘etoile, Yves Rocher, Ile de Beaute are alreadyrepresented in the city. But in general retailer‘s interestin the city is low because of low retail turnover and pooreconomic perspectives. SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m Park House EXISTING Vega 55,000 21,940 2004 Aerohall 28,128 18,283 2005 Madagaskar 22,068 15,513 2007 Park House 70,000 45,500 2007 Capital 50,000 26,700 2009 Rus na Volge 111,000 70,000 2009 CLICK FOR INTERACTIVE RETAIL MAP Source: Cushman & Wakefield25
    • RETAIL SPACE ACROSS RUSSIA 2012-2013 Cities 500,000 +IRKUTSKCITYIrkutsk is a large scientific, industrial, transportation andtourist center in eastern Siberia.SHOPPING CENTERSThe quality retail segment now is represented by two re-tail centers, totaling 39,000 sq m of retail GLA. The big-gest shopping center, Jam Mall (2004), created a new stan-dard of quality retail formats in the city.Low-quality premises are dominant in the retail market.The most famous and popular is the Chinese market(nicknamed ―Shanghai‖) which appeared in the 90‘s and 2011 % Ref*became the gate for cheap Chinese goods. The market is POPULATION, ‗000 inhabitants 587 42.4%spread across a number of streets in the central section of RETAIL TRADE TURNOVER, mn USD 761 25.2%the city and is a strong competitor for any new qualityprojects entering the market in terms of price and current AVERAGE MONTHLY SALARY, USD 858 99.9%population habits. RETAIL STOCK, sq m/ 1,000 citizens 66 19.8%In the several years the retail scene of the city might *compared to Ekaterinburg (reference city for regional comparisons)change significantly. About 154,000 sq m of new space are RETAIL SPACE. ‘000 SQ M GLAin the pipeline including big shopping center that will bedeveloped after relocation of the Chinese market. Existing 39RETAILERSHigh income of population strongly attracts tenants to the Under Construction 154city, but there is almost no quality retail space in the city. Planned 70The next several years with the delivery of several qualityshopping malls could bring a lot of new retailers to the Source: Cushman & Wakefieldcity. Jam Mall SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING Jam Mall 30,000 21,000 2004 Karamel 26,000 18,000 2004 UNDER CONSTRUCTION KomsoMall (former 75,000 57,700 2013 Kontinental) Irkutskaya Sloboda 70,000 37,000 2013 SC Sergeeva st. 107,700 59,000 2013 PLANNED Fortuna City Mall 100,000 70,000 2014 CLICK FOR INTERACTIVE RETAIL MAP Source: Cushman & Wakefield26
    • RETAIL SPACE ACROSS RUSSIA 2012-2013Cities 500,000 +IZHEVSKCITYIzhevsk is the capital of Udmurtia, a well-developed regionspecializing in machinery, steel and car production.Izhevsk has a population over 500,000 and accounts forabout 40% of the Udmurtia‘s population.SHOPPING CENTERSThe retail pipeline in the city was exhausted with the de-livery of several quality shopping centers in 2009-2011.The existing quality projects are less than GLA 30,000sqm and there is still a place for large-scale scheme. 2011 % Ref*RETAIL STREETS POPULATION, ‗000 inhabitants 628 45.4%The main retail corridors of Izhevsk are Pushkinskaya, RETAIL TRADE TURNOVER, mn USD 739 24.5%Lenina and adjacent streets, where retail is represented byfirst floor premises with both local and federal tenants. AVERAGE MONTHLY SALARY, USD 568 66.1%RETAILERS RETAIL STOCK, sq m/ 1,000 citizens 199 59.3%Poor condition of low quality retail leaves room for qual- *compared to Ekaterinburg (reference city for regional comparisons)ity retail development. Such federal networks as Karusel, RETAIL SPACE. ‘000 SQ M GLAM-Video, KinoMax, Star Galaxy have all expressed interestin expanding to the city. Existing 125 Under Construction Planned Source: Cushman & Wakefield Talisman SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING Petrovsky 50,000 28,000 2007 Stolitsa 32,200 28,100 2007 Talisman 45,000 27,000 2009 Flagman 23,000 16,000 2011 CLICK FOR INTERACTIVE RETAIL MAP KIT 40,000 26,000 2011 Source: Cushman & Wakefield27
    • RETAIL SPACE ACROSS RUSSIA 2012-2013 Cities 500,000 +RYAZANCITYRyazan is the center of the Ryazan region, located on theOka river. It is an industrial center of agricultural machin-ery production, petrochemical production and instrumentengineering. Currently there are 6 quality shopping cen-ters (totaling a GLA of 118,000 sq m) in the city. Despitethis, many people still prefer traditional retail.SHOPPING CENTERSExisting city infrastructure lacks an entertainment seg-ment, which is of most interest to young families.Relative proximity to Moscow allows citizens of Ryazan to 2011 % Ref*travel to Moscow for shopping. This means that local POPULATION, ‗000 inhabitants 525 38.0%shopping malls have to compete with major Moscow RETAIL TRADE TURNOVER, mn USD 911 30.2%schemes. AVERAGE MONTHLY SALARY, USD 614 71.4%With the delivery of the M5 Mall and Premier shoppingmalls in 2011– 2012 there are not many projects in the RETAIL STOCK, sq m/ 1,000 citizens 363 108.1%pipeline. *compared to Ekaterinburg (reference city for regional comparisons)RETAIL STREETS RETAIL SPACE. ‘000 SQ M GLAMain retail corridors are concentrated in the city center:Sobornaya Street, Pervomaysky Prospect, PochtovayaStreet. Considering the new shopping centers opening in Existing 190the market, we expect considerable competition. Under ConstructionRETAILERS Planned 14The high income of the population strongly attracts ten-ants to the city, but there is almost no quality retail space Source: Cushman & Wakefieldin the city.In the next several years the delivery of several qualityshopping mall could change the retail scene in the city. M5 Mall SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING Atron-City 17,000 14,000 2005 Kruiz 24,000 18,000 2006 Victoria Plaza 20,432 13,500 2008 Malina (Sobor Plaza) 28,400 14,600 2008 Victoria Plaza 2 21,000 14,000 2011 M5 Mall (Gallery 81,500 66,490 2011 Okskaya) Premier 70,000 50,000 2012 PLANNED Hypercenter Phase II 41,300 14,450 2014 CLICK FOR INTERACTIVE RETAIL MAP Source: Cushman & Wakefield28
    • RETAIL SPACE ACROSS RUSSIA 2012-2013Cities 500,000 +TULACITYTula is quite a large city (population about 500,000), lo-cated about 200 km from Moscow. Traditionally, the mainindustries of the city and the entire region are metallurgyand the defense industry. Proximity to Moscow and al-most 100% dependence on the state budget were thefactors that hampered the city‘s development startingfrom the end of the 1990‘s. A significant part of thepopulation works in Moscow as it offers more job oppor-tunities and higher salaries, returning home for weekends.SHOPPING CENTERS 2011 % Ref*The retail segment had the same pattern: people from POPULATION, ‗000 inhabitants 501 36.2%Tula were keen to visit large Moscow supermarkets (many RETAIL TRADE TURNOVER, mn USD 792 26.3%of them are located on a route connecting two cities), AVERAGE MONTHLY SALARY, USD 637 74.1%rather than the shop locally. Although There are about162, 000 sq m more in retail space in the pipeline for 2012 RETAIL STOCK, sq m/ 1,000 citizens 89 26.5%-2013 , the city is under the very active retail develop- *compared to Ekaterinburg (reference city for regional comparisons)ment. RETAIL SPACE. ‘000 SQ M GLARETAIL STREETSThe main street-retail corridors are along Lenina andKrasnoarmaisky Prospects. Existing 62RETAILERS Under Construction 162The environment started to change recently, when na- Planned 142tional and international business came to the region(Procter&Gamble, Cargill, Knauf, Baltika, Wimm-Bill- Source: Cushman & WakefieldDann). RIO SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING InterCity 26,300 17,200 2005 RIO 25,000 15,000 2010 Gostinny Dvor new 40,000 29,512 2012 development UNDER CONSTRUCTION Likerka Loft 25,000 15,000 2012 Grinn 32,000 24,000 2012 Evropa 60,000 45,000 2013 Maxi (LEON Building 104,000 78,000 2013 project) PLANNED Oktyabrskaya and 82,863 51,781 2014 Karpova project SC_OST Group 120,000 90,000 2014 CLICK FOR INTERACTIVE RETAIL MAP Project Source: Cushman & Wakefield29
    • RETAIL SPACE ACROSS RUSSIA 2012-2013 Cities 500,000 +ORENBURGCITYOrenburg is the center of one of Russia‘s major agricul-ture regions, and its population is more than 500,000 in-habitants.Organized marketplaces and low-quality premises pre-vailed in Orenburg‘s retail market, mainly concentratedaround the City Central Market, traditionally the commonshopping area for many citizens.SHOPPING CENTERSThe city center is historically the main shopping area forcitizens, but the main low-quality shopping centers are 2011 % Ref*located in this area, and thus the distribution of retail ar- POPULATION, ‗000 inhabitants 564 40.8%eas across the city is very uneven. RETAIL TRADE TURNOVER, mn USD 738 24.5%The first quality shopping center appeared in 2008 AVERAGE MONTHLY SALARY, USD 625 72.7%(Armada, 90,000 GLA), followed by Gulliver (40,200 RETAIL STOCK, sq m/ 1,000 citizens 231 68.8%GLA). Armada is the largest mall in the city and the entire *compared to Ekaterinburg (reference city for regional comparisons)Orenburg region. It is fully tenanted with famous Russianand international brands (Bershka, Oysho, Pull&Bear, RETAIL SPACE. ‘000 SQ M GLAStradivarius, Zara, Celio, Chester, Henderson, Incanto).More brands are interested in the region. Existing 130The crisis slowed the retail market‘s development, whenmany consumers turned to organized markets again, but Under Construction 47now the market is recovering with a good pace. Planned 20 Source: Cushman & Wakefield Armada SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING Armada 130,000 90,000 2008 Gulliver 51,000 40,200 2011 UNDER CONSTRUCTION Sever (4 phase) 51,000 11,000 2012 Armada (2 phase) 56,040 35,770 2012 PLANNED SC with CLICK FOR INTERACTIVE RETAIL MAP aquapark_Limpopo 30,000 19,500 2014 Source: Cushman & Wakefield30
    • RETAIL SPACE ACROSS RUSSIA 2012-2013Cities 500,000 +TYUMENCITYTyumen is currently considered to be the ―non-official oil& gas capital‖ of Russia. Business activity of the largest oiland gas companies is concentrated here. A significant partof the nation‘s oil (64 %) and gas (91 %) is produced in theregion. Tyumen is a major transportation hub of the re-gion. The average nominal monthly salary in Tyumen isalmost 40% higher than the Russian average.SHOPPING CENTERSThe retail development is mainly concentrated in the east-ern part of the city where new residential areas are being 2011 % Ref*actively constructed. Some projects are announced on the POPULATION, ‗000 inhabitants 582 42.1%so-called Ring Road. Most quality shopping centers were RETAIL TRADE TURNOVER, mn USD 4,692 155.6%opened between 2005 and 2008 when the stock increasedsubstantially - by ten times. The construction pipeline is AVERAGE MONTHLY SALARY, USD 969 112.7%impressive, at least 4 quality shopping malls might be deliv- RETAIL STOCK, sq m/ 1,000 citizens 262 78.1%ered soon. *compared to Ekaterinburg (reference city for regional comparisons)RETAILERS RETAIL SPACE. ‘000 SQ M GLAOver 60% of the retailers operating in Tyumen openedtheir first stores in 2005 in Premier and Godwin shopping Existing 152centers. Currently there are over 100 federal and interna-tional chain retailers of all categories presented in differ- Under Construction 339ent locations. However, the main concentration is still in Planned 112the two shopping centers mentioned above, and on themain street retail locations – Respubliki and LeninaStreets. Strong national chains (Karusel, Perekrstok, etc.) Source: Cushman & Wakefieldas well as international retailers are present in the city. Gudvin SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING Premier 32,500 21,125 2005 Gudvin 40,826 32,760 2005 Zelyony Bereg 23,867 16,900 2006 Kolumb 47,565 26,726 2007 Favorit 30,000 23,000 2008 PA-NA-MA 27,700 20,000 2009Gudvin UNDER CONSTRUCTION Maxim 97,500 18,551 2012 MDS Group project in 109,000 75,000 2013 Tyumen SC_Finstar project 177,600 77,500 2013 SEC (SibIntel project) 60,000 43,570 2014 Tumen 153,000 107,000 2014 PLANNED Planeta 125,000 90,000 2014 CLICK FOR INTERACTIVE RETAIL MAP Source: Cushman & Wakefield31
    • RETAIL SPACE ACROSS RUSSIA 2012-2013 Cities 500,000 +KHABAROVSKCITYKhabarovsk is the administrative center of KhabarovskyKray. Located on the Amur River, it is the biggest riverport of the Far East area. The economy is based onchemical production, port services, and shipyards. Retailturnover is less compared to the same size cities in theEuropean part of Russia. The retail market is significantlyinfluenced by its proximity to China. SHOPPING CENTERSThe retail market is undersupplied with quality space: justa few small shopping centers exist in the city (with total 2011 % Ref*GLA about 60,000 sq m). POPULATION, ‗000 inhabitants 578 41.8%The pipeline is poor. RETAIL TRADE TURNOVER, mn USD 943 31.3%RETAILERS AVERAGE MONTHLY SALARY, USD 994 115.6%There are some federal retail chains present on the mar- RETAIL STOCK, sq m/ 1,000 citizens 102 30.4%ket (Ile de Beaute, OGGI, Eldorado, M.Video). As for *compared to Ekaterinburg (reference city for regional comparisons)food retailers, only local chains (Nevada (―SamBeri‖), TriTolstyaka, Narodnaya Kompaniya, Pelikan) are operating RETAIL SPACE. ‘000 SQ M GLAin the market. National food chains are not expected tocome in for another 2 or 3 years due to difficulties with Existing 59logistics and financing.White & Brown local retailers are also active (V-Lazer, Under ConstructionEnka, Domotehnika). Planned 56NK Plaza Source: Cushman & Wakefield SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING NK Plaza (NK City) 20,000 15,000 2005 Bolshaya Medvedica 28,000 18,988 2008 Uzhniy Park (Suvorov) 37,000 25,000 2012 PLANNED Aquapark multifunctional complex 135,200 56,000 2016 CLICK FOR INTERACTIVE RETAIL MAP Source: Cushman & Wakefield32
    • RETAIL SPACE ACROSS RUSSIA 2012-2013Cities 500,000 +ASTRAKHANCITYAstrakhan is a river and sea port on Volgo-Kaspiysky ba-sin. Main industries are mining (gas and brimstone extrac-tion), machinery (shipbuilding facilities) and port service.SHOPPING CENTERSThe first quality shopping centers appeared in the city in2010. Two large scale centers Yarmarka (GLA 37,000 sqm) and Arriba (GLA 20,500 sq m) have been delivered in2011.Customers show growing demand for modern retail. Lo-cal consumer market research estimated that about 73% 2011 % Ref*of citizens in 2009 preferred to go shopping in retail cen- POPULATION, ‗000 inhabitants 521 37.6%ters instead of open markets (―Consulting ABV‖ data). RETAIL TRADE TURNOVER, mn USD 643 21.3%RETAILERS AVERAGE MONTHLY SALARY, USD 615 71.6%Such retail groups as Inditex Group, Bestseller, Chazchma, RETAIL STOCK, sq m/ 1,000 citizens 194 57.8%Kristia, Melon Fashion Group and X5 RETAIL GROUP *compared to Ekaterinburg (reference city for regional comparisons)announced potential interest in the city. Finn Flare, Zolla,Be Free, Berhska stores are present in the city. *compared SPACE. ‘000(referenceGLA regional comparisons) RETAIL to Ekaterinburg SQ M city for Existing 100 Under Construction Planned 60 Source: Cushman & Wakefield Alimpic SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING Grand-River (Magistralnaya) 22,130 18,000 2010 Alimpic 68,000 38,000 2010 Yarmarka (ADG Project) 81,700 36,980 2011 PLANNED Arriba 31,176 20,546 2013 CLICK FOR INTERACTIVE RETAIL MAP Park House 51,000 39,000 2014 Source: Cushman & Wakefield33
    • RETAIL SPACE ACROSS RUSSIA 2012-2013 Cities 500,000 +BARNAULCITYBarnaul is one of the main South Siberian cities, the capitalcity of Altaysky Kray, and is located on the Ob river. Al-though there are several federal highways such as the M52(to Mongolia) and A349 (to Kazakhstan), the city is ratherisolated. Altaysky Kray is not a highly populated regionwith a low potential of growth. Currently the majority offactories are closed or are in poor condition. At the sametime Barnaul is a large cultural center in Siberia.SHOPPING CENTERSCurrently the retail market is at the first stage of develop- 2011 % Ref*ment. The retail stock consists of redeveloped malls, most POPULATION, ‗000 inhabitants 670 48.4%shopping centers could not be classified as high-quality RETAIL TRADE TURNOVER, mn USD 994 33.0%(such as Altay, City-center, Passage). Traditional open AVERAGE MONTHLY SALARY, USD 545 63.4%marketplaces and reconstructed covered markets are still RETAIL STOCK, sq m/ 1,000 citizens 166 49.4%very popular among citizens. There are a number of an-nounced large-scale projects by federal developers but *compared to Ekaterinburg (reference city for regional comparisons)their delivery dates are not clearly defined. RETAIL SPACE. ‘000 SQ M GLARETAIL STREETSMain street retail corridors are traditionally located in the Existing 111historic city center: Lenina Prospect, Lva Tolstogo Street. Under Construction Planned 35 Source: Cushman & Wakefield Vesna SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING Evropa 35,000 30,708 2008 Altay (Redevelopment) 63,284 42,000 2009 Vesna 31,500 14,200 2011 PLANNED SC Baltiiskaya st. 63,950 35,000 2014 CLICK FOR INTERACTIVE RETAIL MAP Source: Cushman & Wakefield34
    • RETAIL SPACE ACROSS RUSSIA 2012-2013Cities 500,000 +KRASNOYANRKCITYKrasnoyarsk is the 14th largest city of Russia with a popu-lation of 963,200 people. It‘s the largest business and in-dustrial center of Central and Eastern Siberia.The city is situated on both banks of the Enisey river. His-torically, the right bank accommodates the industrial partand the left bank is the city center, representing its busi-ness and cultural part.Respectively, social life is divided into two parts as well asthe shopping centers structure, with high price retail seg-ment on the left bank, and economic ones on the right 2011 % Ref*bank. POPULATION, ‗000 inhabitants 975 70.5%In 2007, the re-development of right-side industrial com- RETAIL TRADE TURNOVER, mn USD 1,158 38.4%plexes started. However, these projects were noticeably AVERAGE MONTHLY SALARY, USD 828 96.4%hampered by the 2008 financial crisis. RETAIL STOCK, sq m/ 1,000 citizens 181 53.8%SHOPPING CENTERS *compared to Ekaterinburg (reference city for regional comparisons)Shopping centers in Krasnoyarsk are mainly concentratedin the Leninsky, Sovetsky and Oktyabrsky districts. RETAIL SPACE. ‘000 SQ M GLATotal existing quality shopping centers‘ stock accounts for176,000 sq m of GLA and refers to three operating shop- Existing 176ping centers. The biggest and the most professional ofthem is Planeta (delivered in 2008) with 96,000 sq m of Under Construction 55retail GLA. PlannedRETAIL STREETSThe main retail corridors are prospect Mira and Lenina Source: Cushman & Wakefieldstreet, located in the left bank‘s Tsentralny district. Planeta SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING Torgovy kvartal na 36,700 30,000 2001 Svobodnom 1 June 75,000 50,000 2008 Planeta 147,380 96,000 2008 UNDER CONSTRUCTION Ogni 60,000 45,000 2012 Vzletka District 49,600 10,000 2013 CLICK FOR INTERACTIVE RETAIL MAP Source: Cushman & Wakefield35
    • RETAIL SPACE ACROSS RUSSIA 2012-2013 Cities 500,000 +LIPETSKCITYLipetsk has a strong economic base with well-developedindustrial sectors (metallurgy, construction and machineryengineering). The status of Lipetsk as a special economiczone attracts businesses to the city and provides stableemployment prospects. During the crisis, retail turnoverin the region increased by 12% in comparison to 5% onaverage in Russia, with the discounted and mass-marketproducts dominating the quantity of sales.SHOPPING CENTERSThe retail market is the most developed sector of com-mercial real estate in the city. A number of modern shop- 2011 % Ref*ping centers were delivered since 2005, including Lipetsk, POPULATION, ‗000 inhabitants 508 36.7%Mall, and Noyabrsky. The shortage of retail premises in RETAIL TRADE TURNOVER, mn USD 5 0.2%the center was compensated for by the delivery of SC AVERAGE MONTHLY SALARY, USD 657 76.4%Evropa in 2010. There was a big pipeline of frozen pro- RETAIL STOCK, sq m/ 1,000 citizens 176 52.5%jects that were planned for 2008 and 2009 but did notcome to fruition due to the economic downturn and li- *compared to Ekaterinburg (reference city for regional comparisons)quidity problems. RETAIL SPACE. ‘000 SQ M GLARETAIL STREETSMain retail corridors are Sovetskaya Street and Prospect Existing 89Pobedy.RETAILERS Under ConstructionThe majority of international and federal chain retailers Plannedare already present in the city, such as REAL, O‘Key, Me-dia Markt, Vester, Liniya, Perekrestok, Technosila, Magnit, Source: Cushman & WakefieldMetro Cash & Carry, Detskiy Mir, Eldorado, Carlo Pa-zolini, Chester, Rieker, Ostin, Accessorize, and the brandsof the Inditex group of companies. Evropa SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING Lipetsk 18,000 13,000 2006 MALL 49,000 26,161 2009 CLICK FOR INTERACTIVE RETAIL MAP Evropa 60,000 43,000 2010 Source: Cushman & Wakefield36
    • RETAIL SPACE ACROSS RUSSIA 2012-2013Cities 500,000 +VLADIVOSTOKCITYThe extreme distance from Russia‘s industrial and logisticscenters, the time difference with the European part ofRussia and proximity to China are the key drivers affectingVladivostok‘s market development.The main driver of the city‘s and regional economies isstrong federal financial support due to organization of theAPEC Forum in 2012.SHOPPING CENTERSAmong other projects are potential development of the 2011 % Ref*fourth gambling zone on the territory of Primorsky Krai, POPULATION, ‗000 inhabitants 617 44.6%potential organization of the Special Economic Zone, andconstruction of the oil pipeline from Russia to Asia. RETAIL TRADE TURNOVER, mn USD 483 16.0%The retail market in the city is mainly represented by AVERAGE MONTHLY SALARY, USD 929 108.1%small low-quality shopping centers and is characterized by RETAIL STOCK, sq m/ 1,000 citizens 22 6.7%a dominance of Chinese goods. *compared to Ekaterinburg (reference city for regional comparisons)Cheremushki shopping mall might become the largest and RETAIL SPACE. ‘000 SQ M GLAthe highest quality shopping center in the region.RETAIL STREETS Existing 25The main retail corridors are Semenovskaya, Aleutskayaand Russkaya streets. Under Construction 24RETAILERS PlannedInternational and federal chain operators Naf Naf, Mango,Beneton, Mexx, WoolStreet, Ecco, L‘Etoile are present in Source: Cushman & Wakefieldthe market, however, no-name goods of poor qualitydominate the market. SELECTED RETAIL PROPERTIES TOTAL, GLA, DELIVERY sq m sq m EXISTING Cheremushki 35,885 25,120 2012 UNDER CONSTRUCTION Fortorg project 22,000 15,400 2015 Cheremushki GUM additional 11,000 9,000 2015 development CLICK FOR INTERACTIVE RETAIL MAP Source: Cushman & Wakefield37
    • TABLES&INTERACTIVE CHARTSAGGREGATE MACRO STATISTICS AVERAGE RETAIL RETAIL TURN-RANKING BY POPULA- MONTHL TURN- OVERPOPULATION IN CITY TION, 000 Y % TO EKATERINBURG OVER, mn PER CAPITA,RUSSIA inh SALARY, USD USD USD RETAIL AVERAGE POPULA- TRADE MONTHLY TION TURNOVER SALARY 1 Moscow 11,514.3 1,264.8 94,910.0 8,242.8 832.3% 3147.5% 147.1% 2 St. Petersburg 4,848.7 895.3 22,556.8 4,652.1 350.5% 748.1% 104.1% 3 Novosibirsk 1,473.7 769.7 2,892.0 1,962.4 106.5% 95.9% 89.5% 4 Ekaterinburg 1,383.4 859.7 3,015.4 2,179.7 100.0% 100.0% 100.0% 5 Nizhny Novgorod 1,259.7 718.5 2,735.2 2,171.3 91.1% 90.7% 83.6% 6 Samara 1,165.0 681.3 2,662.0 2,285.0 84.2% 88.3% 79.2% 7 Omsk 1,154.0 636.1 1,352.7 1,172.2 83.4% 44.9% 74.0% 8 Kazan 1,143.6 639.1 2,312.5 2,022.2 82.7% 76.7% 74.3% 9 Chelyabinsk 1,130.3 675.4 1,780.9 1,575.6 81.7% 59.1% 78.6% 10 Rostov-on-Don 1,089.9 693.2 2,221.3 2,038.0 78.8% 73.7% 80.6% 11 Ufa 1,062.3 727.3 1,541.4 1,451.0 76.8% 51.1% 84.6% 12 Volgograd 1,021.2 602.4 1,919.4 1,879.5 73.8% 63.7% 70.1% 13 Perm 991.5 746.8 1,618.6 1,632.5 71.7% 53.7% 86.9% 14 Krasnoyarsk 974.7 828.4 1,158.2 1,188.3 70.5% 38.4% 96.4% 15 Voronezh 890.0 598.6 1,199.5 1,347.8 64.3% 39.8% 69.6% 16 Saratov 837.8 596.2 1,205.7 1,439.2 60.6% 40.0% 69.3% 17 Krasnodar 832.6 743.8 2,459.8 2,954.3 60.2% 81.6% 86.5% 18 Tolyatti 719.5 573.5 918.7 1,276.8 52.0% 30.5% 66.7% 20 Barnaul 670.0 545.4 994.0 1,483.6 48.4% 33.0% 63.4% 21 Ulyanovsk 637.3 533.1 876.5 1,375.4 46.1% 29.1% 62.0% 22 Izhevsk 628.1 568.2 738.8 1,176.2 45.4% 24.5% 66.1% 23 Vladivostok 616.9 929.4 482.5 782.2 44.6% 16.0% 108.1% 24 Yaroslavl 591.5 665.1 754.7 1,276.0 42.8% 25.0% 77.4% 25 Irkutsk 587.2 858.5 761.2 1,296.3 42.4% 25.2% 99.9% 26 Tyumen 581.8 968.6 4,692.1 8,064.7 42.1% 155.6% 112.7% 27 Khabarovsk 577.7 993.6 942.8 1,632.0 41.8% 31.3% 115.6% 28 Orenburg 563.8 625.3 738.5 1,309.9 40.8% 24.5% 72.7% 29 Novokuznetsk 547.9 646.7 684.8 1,249.9 39.6% 22.7% 75.2% 30 Tomsk 544.3 24,058.9 792.2 21,356.7 703.2 39,237.0 1,292.0 31 Kemerovo 532.9 734.1 1,117.5 2,097.0 38.5% 37.1% 85.4% 32 Ryazan 525.1 613.8 910.5 1,734.0 38.0% 30.2% 71.4% 33 Astrakhan 520.7 615.4 643.1 1,235.1 37.6% 21.3% 71.6% 34 Penza 517.1 550.0 554.5 1,072.3 37.4% 18.4% 64.0% Naberegnie 35 513.2 538.3 709.2 1,382.0 37.1% 23.5% 62.6% Chelni 36 Lipetsk 508.1 657.0 5.4 10.7 36.7% 0.2% 76.4% 37 Tula 501.1 636.8 791.6 1,579.8 36.2% 26.3% 74.1%* GRP is calculated as a sum of the three main industries turnover: mining, manufacturing and production/distribution of water, gas and electricity
    • TABLESAVERAGE RENTAL RATES IN LEASE TERMS IN MOSCOWQUALITY SHOPPING CENTERS CITY AVERAGE RENTAL RATE * ITEM COMMENTSt. Petersburg Standard lease terms for galleryEkaterinburg tenants are between 3-5 years, break options are rare. For anchorNizhnyi Novgorod 600-1,500 Lease Terms tenants (including fashion anchors)Rostov-On-Don lease terms are up to 20 -25 yearsPerm and break option is becoming popu-Novosibirsk lar.Krasnoyarsk Rents are typically payable monthly in advance. Turnover / percentageKrasnodar rents are increasingly seen in shop-Samara Rental Pay- ping centres. Rental rates are gen-Kazan ment erally calculated in USD, Eurо orChelyabinsk 500-1,200 commercial units are used. In less quality shopping centres rentalKemerovo rates are calculated in RUR.NovokuznetskVoronezh The rent deposit required in qualityOmsk Rent Deposit shopping centres is typically be-Ryazan tween 1 – 3 months rent equitant.VolgogradSaratov Annual indexation is typical be-Izhevsk tween 3-10% or at a level of USD /Ulyanovsk EU CPI. The practice of premium / IndexationBarnaul key money payments is seldom seen in Russia. Rent reviews areIrkutsk rare on the market.Yaroslavl Service charge is payable by tenants 400-800Orenburg at either an “open book” basis orNaberezhnye more common as a fixed cost. Utili- ServiceChelny ties payments are charged on con- ChargesAstrakhan sumption. Building insurance is nor- mally charged back to tenant viaLipetsk service charge.PenzaTogliatti Other costs VAT 18%Ufa*USD per year, triple net per 150 sq m unit in retail gal-lery of quality shopping center Local property taxes are not payed separately, they are generally in-The estimated level of rental rates for open vacancies is cluded in the service charges.shown. In terms of reliable comparison, one sample wasused: level of announced rental rate for a blockof 100 sq m in the retail gallery for a fashion retailer.
    • 41 2011 - 2012 RETAIL INVESTMENT TRANSACTIONS IN RUSSIA TABLES PROPERTY CITY RETAIL GLA, QUARTER SHARE INVESTOR ESTIMATED sq m VOLUME, USD 2012 Holding-Centr portfolio Moscow 31,705 2012 Q3 100% VTB Capital 65,600,000 (Sokolniki SC, Mosfilmovsky SC, Na Begovoy SC) Moskva Moscow 10,300 2012 Q3 100% A One Direction OOO 100,000,000 Super Siwa St. Petersburg 9,200 2012 Q3 100% Jensen Group 10,000,000 Gorizont Megacentr Rostov-on-Don 98,548 2012 Q2 100% Real Invest OOO - Uyut Moscow 18,000 2012 Q2 100% Genplan NIiPI 31,500,000 Metromarket na Dmitrovke 7,322 42,000,000 Moscow 2012 Q2 100% Atlant Capital Partners Metromarket na Proletarskoy 2,559 14,000,000 Bashkortostan Mall Ufa 12,700 2012 Q2 100% Trilistnik Group 34,073,524 Globus Moscow 2012 Q2 100% Globus 25,750,341 Golden Babylon Rostokino Moscow 170,000 2012 Q2 50% Immofinanz Group Undisclosed Vremena goda Moscow 29,350 2012 Q2 40% Romanov Property Holdings Fund Confidential Mozaika Moscow 68,000 2012 Q1 50% Highriser (P. Shura) 40,000,000 Moskva Moscow 10,300 2012 Q1 95% Legacy House Investment Ltd. 58,111,655 Galeria S. Peterburg 93,000 2012 Q1 100% Morgan Stanley Real Estate Fund VII 1,100,000,000 Gostiny Dvor Kronstadt S. Peterburg 2012 Q1 100% Holding Company Gurvit OOO 6,880,244 2011 Macromir portfolio (French Blvd, Felicita, Rodeo Drive, Fiolent, City Mall) S. Peterburg 171,365 2011 Q1 100% Fort Group 550,000,000 K-Rauta Kim, Forum SC, Kaliningrad Plaza Regional 35,000 2011 Q1 100% Thomas Lindeborg,Kungsleden AB 133,000,000 Metromarket Sokol, Dmitrovskaya, Proletarskaya Moscow 12,645 2011 Q2 100% RMB Invest 105,000,000 Goodzone Moscow 64,000 2011 Q2 25% Immofinanz Group - KomsoMall (Slava) Other 68,000 2011 Q2 17% Castorama 6,000,000 Kaluzhsky Moscow 18,000 BIN Group 156,000,000 2011 Q2 100% Torgoviy Kvartal Other 48,200 Torgovy Kvartal 70,000,000 KomsoMall Other 57,700 2011 Q2 100% DVI Group Philion, Gorbushkin Dvor Moscow 55,477 2011 Q2 100% Kompleksnye Investicii 600,000,000 Metromarket na Shabolovke Moscow 2,000 2011 Q3 100% UFG Real Estate 12,000,000 Nevskiy Passage S. Peterburg 21,527* 2011 Q3 100% Jensen Group 70,000,000 Dream House Moscow 8,523 2011 Q3 100% Romanov Property Holdings Fund 95,000,000 Raikin centre of art and culture Moscow 17,000 2011 Q3 100% Tashir Group 50,000,000 AFImall City (Mall of Russia) Moscow 114,213 2011 Q3 25% AFI Development 157,000,000 Leto S. Peterburg 80,000 2011 Q4 50% Hals Development - 2012-2013 RETAIL SPACE ACROSS RUSSIA
    • About Cushman & Wakefield Research publications/ О публикациях отдела исследований Cushman & WakefieldCushman & Wakefield is the worlds largest privately-held com- HOSPITALITYmercial real estate services firm. Founded in 1917, it has 234 Cushman & Wakefield Hospitality department proposes a bigoffices in 61 countries and more than 13,000 employees. number of services in Hospitality real estate sector (all levelsThe firm represents a diverse customer base ranging from small hotels, health resorts, SPA and wellness complexes, golf-clubs,businesses to Fortune 500 companies. It offers a complete range apart-hotels and apartments with services) and works in Russianof services within five primary disciplines: Transaction Services, and CIS markets. Our services: consultancy support of the de-including tenant and landlord representation in office, industrial velopers projects, analysis of the financial-economical reason-and retail real estate; Capital Markets, including property sales, ability of the projects, valuation and members selection, concep-investment management, investment banking, debt and equity tion development for hotels and multifunctional resorts, concep-financing; Corporate Occupier & Investor Services, including tual projecting, market potential valuation and financial modeling,integrated real estate strategies for large corporations and hotel operator searching, hotels valuation, asset management.property owners; Consulting Services, including business and RESEARCHreal estate consulting; and Valuation & Advisory, including ap- As a market leader in Russia, C&W produces a significantpraisals, highest and best use analysis, dispute resolution and amount of research in order to maintain our position as thelitigation support, along with specialized expertise in various most knowledgeable firm in the Russian commercial real-estateindustry sectors. market. Our research encompasses comprehensive supply/CAPITAL MARKETS demand analysis, vacancy and rental-rate trends, operating ex-Working with C&W’s Capital Markets team you benefit from: penses, development activities and building specifications.Our strong Moscow based Capital Markets team with deep realestate and investment banking experience; ADVISORY AND VALUATION Advisory and Valuation Services is where developers turn to forAccess to hundreds of best-in-class professionals across all advice on concept design and utilization, and where financers canmarkets through the network Capital Markets professionals in seek objective and qualified valuations on properties in MoscowC&W offices worldwide; and in the regions. Services include development consultancy,Access to a diverse network of international and local owners, feasibility studies, concept studies, financial analysis and valuationdevelopers, investors and banks; services.Optimizing costs and minimizing investment risks through out- PROPERTY MANAGEMENTsourcing, careful long-term planning and execution of invest- Efficient property management can help to increase the value ofment strategies; property assets and align their use with short and long-termReal-time market knowledge and transaction ideas. financial objectives.CORPORATE OCCUPIER SERVICES PROJECT MANAGEMENTOccupier Services, Cushman & Wakefields global services or- Our skilled Project Management professionals handle all clients’ganization, provides strategic real estate solutions that fully sup- needs, from site evaluation to occupancy, efficiently directing andport both our investor and corporate occupier clients. We treat coordinating human and financial resources throughout the pro-real estate portfolios holistically, delivering comprehensive, ject cycle. Cushman & Wakefield creative solutions enable you tostrategy-based solutions across a full range of locations, proper- mange relocation, new construction and refurbishment effi-ties, and business requirements. ciently. Our team has the innovation and experience to develop space in line with your design, budget and business objectives.BROKERAGE Acting as a single point of contact, Project Management teamBrokerage Services is C&W core business: representing land- provides a full range of management services tailored to yourlords and tenants in the leasing, sale and purchase of commercial individual requirements for all your construction and develop-real estate. The Brokerage Services team provides: ment projects.Informed representation of landlords for office, retail and indus- We offer state-of-art services in: project management for newtrial facilities, targeting the best clients for the most efficient construction and refurbishment projects, project managementleasing process; for space fit-out, building consultancy.Targeted marketing campaigns on behalf of landlords. CONTACTSLAND Ducat Place III, Gasheka Street, 6 Moscow,Cushman & Wakefield’s land professionals are able to assist cli- Russia, 125047ents in the search and acquisition of commercial use land plots Tel: +7 495 797 9600; Fax: +7 495 797 9601throughout the Russian Federation. We are able to source land E-mail: moscow@eur.cushwake.comfor the development of multiple business types, including retail www.cushmanwakefield.ru | www.cwrussia.ruand office complexes, industrial and logistic centers, dealerships, www.marketbeat.rushowrooms, etc. An up-to-date database contains over 500land plots currently on offer. www.facebook.com/cwrussia42
    • RETAIL TEAMMaxim Karbasnikoff Ekaterina Zemskaya Charles SlaterPartner Partner, PartnerHead of Retail Services Head of Retail Agency RetailMaxim.Karbasnikoff@eur.cushwake.com Ekaterina.Zemskaya@eur.cushwake.co Charles.Slater@eur.cushwake.comRESEARCH TEAMDenis Sokolov Lada Belaychuk Tatyana DivinaPartner Deputy Senior analystResearch Director Research DirectorDenis.Sokolov@eur.cushwake.com Lada.Belaychuk@eur.cushwake.com Tatyana.Divina@eur.cushwake.comThe information provided in this report is intended for informational purposes only and should not be relied on by any party without further independent verification. Classifications of individual buildings are reviewed on a continuing basis and are subject tochange. The standards used in this process are consistent with those used by Moscow Research Forum and in the United States by the Society of Industrial and Office Realtors (SIOR) and BOMA International. Reproduction of this report in whole or part ispermitted only with written consent of Cushman & Wakefield. Data from this report may be cited with proper acknowledgment given.© 2011 Cushman & Wakefield. All rights reserved.