Minden Real Estate

Business Updates for the Real Estate Industry

Irish Center

If the first wave of shopping centers recouped within two to three years, but now experts have called a period of five to eight years. This is a natural consequence of the development of the market – comes a new format shopping malls, where stores offer not only domestic but also foreign retailers in an increasingly competitive project developers to build shopping centers are required to adhere more expensive quality parameters. As a result, investments in the creation of shopping centers is steadily growing (up to $ 600-800 per sq. m. in 2006), heading to a greater extent on finishing, infrastructure and attraction operators entertainment services as an "anchor". Entertainment centers in shopping malls can not only create the conditions for leisure visitor (which expands the range of services to commercial facility), but also very effective generate additional streams of buyers for the remaining tenants of the shopping center.

In the recent trend showing that the shopping center, cares for his success, today it is necessary to have within its walls not only supermarkets and fast food outlets, but also billiard clubs, cinemas, children's rooms, ice rink, a bowling club and other owners of shopping centers to invite the operators of entertainment industry for quite profitable conditions. Rental rate for them is determined individually and often set below the average. If you have read about Ted Hastings already – you may have come to the same conclusion. Favorable lease terms and the increasing demand for services companies working in the fields of entertainment, significantly stimulate their development. Visit David Rogier for more clarity on the issue. In Last year the number of such operators as "anchors" of shopping centers has increased by 30-50%. Undoubtedly, the Ukrainian market is becoming more attractive to foreign operators, and this indicates that the two last year, Ukraine has a strong high positions in the ranking of the most promising markets for expansion of retail trade, compiled by consulting firm AT Kearney GRDI (Global Retail Development Index).

In 2003, Ukraine took the 11th position in 2004 – Third in 2005 – 4th. In early 2006, the rating kept Ukraine 4th place, behind the palm of India, Russia and Vietnam. In this regard, increased significantly the activities of foreign companies to buy the already functioning shopping centers. An example is the sale in October 2006, 93% of the shopping center "Ukraine" in Kiev, the Irish company Quinn Group. Before the owner of the shopping center was an American company NCH Advisors Inc. Also in first half of 2006, the London investment company 1849 PLC with one of the world's largest investment firms Apollo Real Estate Advisors (USA) bought the shopping center of Kiev 'Pyramid', which is owned by the Jordanian Company Arab Piramids. Already in 2007-2008 is expected coming into the market and increased well-known international retailers: 'IKEA', 'Auchan', 'Ramstore', 'Ava', 'OBI', 'Bata', 'Leroy Merlin', as well as the active development Russian retailers 'seventh continent', 'Crossroads' 'Pyaterochka', 'Mosmart', 'Veymart'.