A Selection of News and Topical Views
- Sep. 29 2016 00:00
The Oceania Opens in Moscow
The Oceania shopping and entertainment center has opened on Kutuzovsky Prospekt near Metro station Slavyansky Bulvar. The building, with a total area of 137,000 sq.m. (60,000 sq.m. of rental), was erected on 2.6 ha. of land. More than 300,000 people visited Oceania in the first week, according to TPS Real Estate, the project developer.
The shopping center is oriented towards families with children. Formula Kino has opened the first IMAX Laser multiplex in Russia and the CIS there. Perekrestok supermarket is present in a new format, M.Video electronics store, Hoff home products and a Leonardo hobby superstor are among the tenants as well. For the children, there are Detsky Mir and Hamley's, and the Interesting Academy educational and entertainment center. According to Cushman & Wakefield, the center is 76 percent filled. In September, TPS Real Estate opened the Khorosho! shopping center near Polezhaevskaya Metro station.Billions for Europe.
Yandex Did Not Buy Krasnaya Roza
Yandex has announced that it has terminated its agreement with the Krasnaya Roza 1875 Limited company (part of Alexander Klyachin's KR Properties) for the purchase of the Krasnaya Roza business complex, but will remain in it premises at Krasnaya Roza until the end of its lease. The Russian search engine was to become the sole owner of the Cypriot company that owns the business complex on Timur Frunze Street in Moscow, where the main Yandex office is located. Yandex said its decision to terminate the agreement was due to changes in market conditions.
The agreement, reached in February 2016, stipulated that Yandex would receive about 80,000 of the 137,000 sq.m. of the complex. Yandex now leases about 53,500 sq.m. of it.
The deal was supposed to be made without money. The company has taken over $490 million of the seller's debt and planned to release it in favor of 12.9 million ordinary Class A shares of Yandex (about 3.9 percent of is share capital after the increase), which it could not sell for 90 days. The total purchase price at the time of the signing of the contract was $655 million. Since then, Yandex shares rose, and now the amount of the transaction would be $773.8 million, based on the value of the search engine on NASDAQ. Yandex wanted to change the terms of the transaction (for example, by including an additional building), but the parties did not see eye-to-eye, a person familiar with the negotiations told Vedomosti, who added that the talks would continue.
Developer of Premium Housing Will Put Up Prefabs
Capital Group, in partnership with the Experimental Development of Microdistricts Administration (founded by the City of Moscow in 1994), has started to build the Positive residential complex in the Rumyantsevo district of "new" Moscow. The 5.87-ha. territory is located 3 km. from the Moscow Ring Road on Kiev Shosse. The total area will be 109,000 sq.m. A new series of Dommos buildings will be used in the construction, and the general contractor will be GVSU Tsentr, affiliated with the Russian Defense Ministry. Investment in the first stage, secheduled for completion in August 2017, will amount to 5.7 billion rubles ($88 million). The partners intend to invest equally, they told Vedomosti.
Capital Group, whose owners are listed as Paul Tyo, Vyacheslav Doronin and Edward Berman, specializes in premium real estate. It built two skyscrapers in Moscow City and a housing complex in Barvikha. The project in Rumyantsevo is the company's second housing project in the comfort class. In March, it began to build a 1-million sq.m. microdistrict in Mitino with GVSU Tsentr. Capital Group is not the first company that has expanded into the mass segment. Barkli and Rose Group have taken similar actions.
X5 Retail Group Expands at Sofyino
X5 Retail Group has leased an additional 22,868 sq.m. of warehouse space in Sofyino logistics park on Novoryazanskoe Shosse, completely occupying the first phase of the project (88,565 sq.m.). The developer of the facility is the AT Real Estate company.
In 2015, X5 Retail leased 65,697 sq.m. in Sofyino logistics park, which was the largest transaction on the warehouse market in Russia that year. The retailer decided to take additional storage space in the complex for their retail chains Perekrestok and Karusel. This will "optimize the costs of internal logistics," commented Knight Frank, consultant in the deal.
The new runway will significantly increase the capacity of the country’s main airport.
A Third Runway at Sheremetyevo Airport
Moscow region authorities have agreed on the design of a new runway at Sheremetyevo International Airport. Its construction is planned for the soccer World Cup to be held in Russia in 2018. The creation of a second flight zone along with the development of the Northern Terminal Complex will turn Sheremetyevo into one of the largest passenger and cargo hubs in the world. By 2030, the airport will be able to handle twice as many passengers as today—up to 65 million people annually.
The total area of the future third runway zone will be 505 ha. This area is separated from the historical international airport by Sheremetyevo Shosse. Construction of the new runway (3200 m. in length) will take place over 340 ha. A passenger terminal, refueling complex, airfield infrastructure and facilities required for air transport services will be built on 165 ha.
A draft plan will be submitted for approval to the Federal Air Transport Agency (Rosaviatsia), said German Elyanyushkin, deputy chairman of the Moscow regional government. The volume of public investment is estimated at about 35.6 billion rubles ($550 million).
Mercury Is the Sole Owner of TsUM
A company close to the Mercury Group became the owner of the Arkada Holding company, which bought one-third of the area of the Central Department Store (TsUM) on Petrovka Street from the City of Moscow last year. An employee of one of the parties in the deal informed Vedomosti of the transaction. Now, according to him, Mercury is the sole owner of the famous department store.
TsUM is the largest department store in Europe, with 70,000 sq.m. of space and over 2000 brands represented.
The value of the transaction was not disclosed. The price of vacant space in the facility begins at 300,000 rubles ($4636) per square meter, Colliers International estimates. Most of the area sold by the city is leased to TD TsUM, owned by Mercury, at the rate of 3540 rubles per square meter per year, according to bidding documents from the auction. At that rate, the investment in the area of TsUM would pay off only in 63 years, whereas the normal term of return on investments is 10-11 years, said former S.A. Ricci managing partner Alexei Bogdanov.
Foreign Tenants Are Back
The number of foreign and regional companies renting housing in Moscow for their employees this year (as of the beginning of September) has doubled compared to the same period last year, according to Incom Real Estate calculations. Most of the staff apartments are rented by companies from Asia (49.5 percent). Only 3 percent of the corporate renters are from Europe, according to a company press release.
In September 2013, before the crisis, 18 percent of the total rental housing market in Moscow was apartments rented by representatives of foreign and regional companies. Employees of European and American firms made up 45 percent of that. Workers from Asian countries accounted for only 10 percent. In 2014, after the imposition of sanctions, the proportion of corporate rentals decreased to 12 percent and, in 2015, it fell to 6 percent. By September 2016, however, it had almost returned to the level of 2014 and amounted to 11.5 percent.
"This year, European firms have begun to appear on the rental again. They are registering joint ventures in Russia and making products that are not covered by the embargo. They need apartments for temporary accommodation of foreign specialists," Incom stated.
Eco-hotel projects are designed in the style of modern Scandinavian housing.
Honka Builds Emerald Forest
The Finnish company Honka was the builder of the Emerald Forest eco-hotel in the Klin district of Moscow region. Guest cottages of laminated veneer lumber, a restaurant and a fitness center with a swimming pool and spa area are located on a territory of 220 ha. The opening of another 5-star hotel in Russia will be announced this winter.