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. Last Updated: 07/27/2016

Lotte Plaza Opens for Business

MTLotte Plaza lies on the intersection of the Garden Ring and Ulitsa Novy Arbat.
The latest addition to the city's luxury retail and office sector, Lotte Plaza, opened its doors Sunday amid a cacophonous fanfare presided over by Mayor Yury Luzhkov.

The prime-location, 85,000-square-meter complex, located at the intersection of the Garden Ring and Ulitsa Novy Arbat, is expected to become a magnet for the city's wealthy.

The elite complex will house retail outlets for international luxury brands, including Armani, Gucci, Prada, Dolce & Gabbana and Jimmy Choo. In addition, some of South Korea's leading retail names, such as Love-Cat, Bean Pole and Cu-Cu, will make their debut on the Moscow market.

The principal renters will be Mercury, Crocus and top-end supermarket chain Azbuka Vkusa.

The shopping center is targeting $62 million in revenue for the period from September to December and aims to raise this sum to almost $150 million in 2008.

"Lotte Plaza is fast becoming a landmark in central Moscow and a much sought after base for flagship stores," said Anna Shchapova, a senior consultant at Cushman & Wakefield's retail department.

Beyond the eye-catching excess of the complex's elite boutiques, the development stands out as the first major project to be built by giant South Korean conglomerate Lotte Group outside the Korean peninsula.

This comes after a long association between the South Korean firm and Russia, which dates back to a sponsorship deal with the 1988 Soviet Olympic team.

"The entrance of a Korean [company] into the Russian market is an important event in world retail," Lotte Group general director Lee Choo said.

Lotte Plaza will also contain a five-star hotel and a Class A business center, housing leading international firms BP, K?hne + Nagel, Woori Bank, Bain & Co. and Tele2.

"Lotte has undoubtedly become a project of great importance in Moscow commercial real estate market due to ... the complex's location, the unique architecture and the modern technological solutions," said Alexander Gurganov, associate director of the office property department at Colliers International.