. Last Updated: 07/27/2016

Large Shopping Mall Planned at Oktyabrskaya

For MTThe 150,000-square-meter shopping mall at Oktyabrskaya metro would also have an IMAX movie theater and an ice-skating rink.
Developer Golutvinskaya Sloboda plans to construct a 150,000-square-meter shopping mall behind the giant statue of Lenin near Oktyabrskaya metro station in the next four to five years.

In addition to retail space, Golutvinskaya Sloboda's general director Andrei Ogirenko said the shopping center will have an IMAX movie theater and an ice-skating rink.

"Golutvinskaya Sloboda has been working on the project since spring and expects to start construction in a year," Ogirenko said in an interview earlier this month.

The Oktyabrskaya mall is not the only one planned for the downtown area. In July, Mikhail Rudyak, head of developer Ingeokom, announced that seven more shopping and entertainment centers similar to the Atrium center next to Kursky Station are to be built on Sukharevskaya, Sadovo-Spasskaya Triumfalnaya and Bolotnaya ploshchads, and next to Paveletsky and Belorussky stations as well as near Krestyanskaya Zastava.

Golutvinskaya Sloboda plans to construct the retail, office and entertainment center on a 4.5- to 5-hectare site between Kalyuzhskaya and Serpuhovskaya ploshchads.

The mall will be four to five stories tall and have two or three levels of parking for up to 2,500 cars. "We will modernize the roadways of this section of the Garden Ring," Ogirenko said.

Ogirenko did not want to put a price on the shopping center his company is planning, but the 103,000-square-meter Atrium cost about $140 million.

Golutvinskaya Sloboda, which has spent the last decade converting a dilapidated textile factory on the Yakimanskaya Naberezhnaya into class A office space, cafes, restaurants and shops, is owned by a group of private investors and the Moscow city government.

Ogirenko would not reveal what stake the Moscow city government holds in the venture. City Hall architects are preparing a design for the Oktyabrskaya center, he said.

The timeframe for construction is four to five years, depending on how quickly investors can be found for the center. Golutvinskaya Sloboda intends to retain possession, but will sell parts to prospective tenants. "If we know who we are building for, then we can give the tenants what they want, and it will save money from the start," Ogirenko said.

Ogirenko said the developer is looking for foreign investment. "Maybe Marks & Spencer will finally make their entry to Russia in our building," he said.

Darrell Stanaford, senior director with Noble Gibbons/CB Richard Ellis, said Oktyabrskaya is a prime location for development and there is little retail competition in the area.

"They [Golutvinskaya Sloboda] have a relatively strong track record compared to most Russian developers, plus city connections that are critical," he said. "Given the great interest in retail development, I think the timing for that type of project is right."

Natalia Oreshina, head of retail at Stiles & Riabokobylko, the local affiliate of Cushman & Wakefield Healey & Baker, said the Golutvinskaya Sloboda's project will need to create its own profile among the large number of shopping centers being built. The planned car parks will help it, as will its location at the beginning of Leninsky Prospekt, where the population is relatively affluent, she said.

"Whether the crowds will drive to the center to do their shopping will very much depend on what they can find there," she said.

The plans for an IMAX cinema and the ice-skating rink should prove to be draw cards, Oreshina added.

"The majority of shopping centers have the same tenant mix; they don't have a clear concept or target audience. The success of anything that is built in the city center will depend on who is there and, if those stores are attractive to the consumer, then the project will be a success," she said.

Another planned Golutvinskaya Sloboda project is to restore the two-story mansion of the Trubetskoi family in Neskuchny Sad next to Gorky Park.

Ogirenko said the 600-square-meter mansion is used as the setting for the television show "Shto? Gde? Kogda?" but is in a parlous state. Golutvinskaya Sloboda wants to restore the building to its former glory and in return to gain ownership.

The work would cost about $5 million, but the building is considered a federal monument, and the project will need approval by the State Duma.

The company is also planning a $20 million investment to reconstruct a building close to the statue of Peter the Great on the Moscow River, where it has spent up to $80 million to date.

The new class-A office project will be the fourth renovation at the almost 3-hectare site. The development has attracted clients, such as Societe Generale Vostok, Vneshtorgbank, LG Electronics, GlaxoSmithKline, Renaissance Insurance, L'Oreal and Mosfinagentsvo.