ADG group offers ‘Moscow on a plate’ to international investors
- In News
- 20:28, 23 April 2018
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ADG’s 39 neighbourhood centres are offering a ‘unique opportunity’ to retailers and investors to meet a demand for proximity shopping in the Russian capital.
Russia is still among the most attractive destinations for investors in Eastern Europe, while its capital is the best hub for potential foreign investments, according to ADG group, a pioneering urban developer from Moscow. ADG showcased its 39 neighbourhood centres in the Russian capital last month at MIPIM in Cannes, sharing the business case for this raft of urban projects.
‘Moscow is an example of post-industrial city transformation into a modern region distinguished by unique planning and architecture, attractive for local and international investments,’ said Grigory Pecherskiy, ADG group’s managing partner.
‘Hosting the FIFA World Cup 2018 and city-infrastructure development by the local authorities create the right investment climate, based on clear and fixed rules that are commonly used and understood by business and authorities.’
The network of 39 neighbourhood centres is ADG group’s most ambitious and innovative project to date. Former cinemas located in densely populated districts of Moscow – where there is an urgent need for quality shopping centres – are being reconstructed to create a new commercial asset class. The project aims to provide enhanced cultural, shopping and entertainment facilities to suit the needs of city neighbourhoods.
‘ADG group has been examining customer habits and keeping track of changes in demand,’ said Pecherskiy. ‘This project responds to one of the most current trends – proximity shopping. There are 2.5 million Muscovites living in urban areas, who aren’t motivated to visit substantial retail spaces in the suburbs, spending hours on the road. The neighbourhood centres scheme is designed to fulfil their needs in terms of shopping and entertainment, within 15 minutes’ walk of their place of residence.’
According to ADG, the traditional mall model anchored by a fashion retailer is no longer enough to guarantee stable traffic and the right revenues. ‘The latest trends in retailtainment and F&B fit better with the concept of neighbourhood centres and create effective opportunities for business and investors to profit from the Russian market,’ Pecherskiy said.
ADG has already signed supermarket chain Lenta to open stores in 36 of the neighbourhood centres, while South Korean movie theatre specialists CJ CGV are establishing a new joint venture company to develop a fresh cinema concept in Russia. The new company will become an anchor tenant in 33 of the neighbourhood centres, a first for the city.
The first redevelopment projects already kicked off last spring, and ADG predicts that all 39 sites will be in commission by 2019. Totalling a gross built area of 480,000 m2, when complete they will make ADG the biggest commercial real estate landlord in the city in terms of assets owned.