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. Last Updated: 07/27/2016

Shopping Centers Blooming All Over Town

A new crop of shopping centers, now in their last phase of construction, will soon open for business in the city center.

Large shopping centers are opening all over Eastern and Central Europe, indicative of international retail operators' — such as the German Metro and the French Carrefour — growing interest in these markets, said Jack Kelleher, managing director at Noble Gibbons, the Moscow-based associate office of CB Richard Ellis.

Rising near Kurskaya metro, the 95,000-square-meter CityStar shopping complex — previously called Garden Ring — is slated to open Sept. 2, said Maxim Karbaniskov, head of the retail department at the Moscow office of Jones Lang LaSalle, the leasing agent for the complex. Engeocom, a Moscow-based company, is developing the complex, which is contracted to Bouygues, the French construction giant.

In addition to a megastore, the complex will house an eight-screen multiplex movie theater, a 30-lane bowling alley, more than 80 shopping outlets and a food court, the developers said. Other amenities will include a nightclub, a sports club with an indoor swimming pool and swim-up bar and an outdoor tennis court that can be converted into an ice-skating rink in the winter, they added.

The key investors in the project include the city government, Engeocom and Bouygues. Sberbank and the city have reportedly pumped about $140 million into the project.

Karbaniskov said negotiations with potential tenants, including Sedmoi Kontinent supermarket, are in advanced stages — rates range from $900 to $2,400 per square meter per year.

Farther to the south, construction work on the Turkish Trade Center is now in full swing, said Bulent Albayrak, the center's deputy chairman.

When completed in the first quarter of 2002, the 75,000-square-meter center within the Garden Ring Road, on Sredny Ovchinnikovsky Pereulok near Novokuznetskaya metro, will hold 15,000 square meters of retail space and 10,000 square meters of office space.

Turkish Tobtim is bankrolling the project, estimated at $50 million. The trade center's construction has been contracted to Ekinsiler, also a Turkish company, which is very active on the local market.

According to Kelleher, the huge success of Ramenka's Ramstore hypermarkets has pulled Turkish trade organizations into the Russian market.

Albayrak said marketing parameters have yet to be worked out, but Stiles & Riabokobylko realty will launch a marketing campaign next month.

At the foot of the Kremlin, the first of three buildings in the 83,500-square-meter Tsar's Garden complex opened last November.

The Tsar's Garden business center project was designed by ABV Co., a group of Russian architects, and is now being developed by the Joint Stock Keystone Financial and Construction Co., a Russian group of real estate property constructors, developers and investors.

The $180 million multifunctional facility overlooks the Moscow River's Sofiiskaya Naberezhnaya and offers space for retail, office, exhibition halls, restaurants and bars.

The center of attraction will be the wonder garden, with floral compositions based on the sketches of Kremlin rooftop gardens in the 17th century.

Since its November opening, the project's first structure housing the world business communication exhibition hall regularly holds conferences and round-table discussions, said Vladimir Neretin, the top Keystone executive for projects' development.

Sberbank is Tsar's Garden's main investor. Neretin declined to give further details on the project's financing.

"Basically, our asking price for 1 square meter of the office space in the business center is $550 per year," Neretin said. "On the retail sector, we are expecting 70 to 80 tenants per 10,000 square meters. The rates for the trading space will depend on the floor and the amount of space rented, with the first floor attracting the highest rates."