DTZ Ukraine 2013 DTZ Ukraine Retail in the Regions Established London, 1784 Established Kyiv, 1994 Kyiv Population 2 844 000 inhabitants Major existing multi-tenant retail centres in Kyiv Major pipeline multi-tenant retail centres in Kyiv Project Delivery Size (sq m) Project Delivery Size (sq m) 1. Dream Town 2009 / 2011 (in phases) 90 860 15. Respublika 2014 139 000 2. Ocean Plaza* 2012 72 200 16. Lavina Mall 2015 115 000 3. Sky Mall* 2007 / 2010 66 000 17. Retroville 2015 82 700 (in phases) 18. KyivMall 2015-2016 75 400 4. Gulliver 2013 45 500 19. Kvadrat Vyrlytsa 2015-2016 75 000 5. Marmelade 2013 40 000 20. Manhattan Mall 2015-2016 69 200 6. Karavan Megastore 2004 / 2005/ 2008 37 700 (in phases) 21. Blockbuster Mall 2014-2015 66 370 7. Bilshovyk 2007 / 2008 36 200 22. Petrivka Mall 2015-2016 61 800 8. Promenada Centre 2004 / 2007 30 000 23. Hartz 2015-2016 57 000 9. RayON 2012 23 000 24. River Mall 2015 49 070 10. Domosfera* 2009 21 600 25. Retail and leisure centre 2015 / 2016 48 000 on Zdolbunivska Str. (in phases) 11. Magellan 2004 21 000 26. Lukyanivka Mall 2015-2016 45 000 12. Ukrayina 2003 (reconstruction) 20 800 Department Store 27. Happy Mall 2014-2015 42 500 13. Globus 2002 / 2003 (in phases) 18 600 28. Prospekt 2014 40 390 14. Manufaktura outlet village 2013 18 200 29. Art Mall 2013 36 750 * extension planned 30. Atmosphere 2014 30 000 31. TSUM 2015 (reconstruction) 22 500 Supply & Demand Rents Total modern retail stock in the city amounted to During the period from October 2011 to around 1,280,000 sq m (GLA) in late October 2013, or October 2013 inclusive, average monthly rents in 449 sq m (GLA) per 1,000 inhabitants. quality retail schemes in Kyiv remained generally stable at USD 70-90 per sq m for premises of 100-250 sq m, In January-October 2013, approximately 134,500 sq m reaching highs of USD 160-200 per sq m per month (GLA) of modern retail space was delivered in Kyiv. in the most sought-after prime properties. Major schemes delivered during the period included ‘Gulliver’ in the central area of the city, ‘Silver Breeze’ High street retail rents in Kyiv also remained generally in the densely populated neighbourhood on the eastern stable during the period. As of late October 2013, bank of the Dnipro River and the secondary quality average high street rents in the Ukrainian capital were retail and leisure centre ‘Marmelade’. registered at $110-230 per sq m per month, with asking monthly rents randomly reaching the highs October 2013 saw opening of ‘Manufactura outlet of $250-300 per sq m. village’ in the Greater Kyiv area, which is located on the land plot adjacent to the operating retail and leisure Taking into account present dynamics of retailers centre ‘MegaMarket Khodosivka’. on the Ukrainian market combined with significant pipeline supply of quality retail stock, DTZ anticipates During the remainder of the year, the retail and leisure that base rental rates during the remainder 2013-2015 centres ‘Art Mall’ and ‘Atmosphera’ are scheduled for will remain stable in relation to the best properties delivery in the southern periphery of Kyiv. However, let at sustainable rents. At the same time, rental rates DTZ projects that opening of these schemes will be in poorly conceived retail schemes in Kyiv and across delayed through to 2014. Ukraine will be subject to downward pressure. This is due to the lack of critical mass of actual new market As of late October 2013, DTZ estimates that entries combined with significant retail stock in around 1,100,000 sq m (GLA) of new ‘modern’ retail pipeline, as well as economic uncertainty both globally space is in active stage of planning or construction and in Ukraine. in Kyiv. If these properties were commissioned in accordance with the announced plans, by end of 2016 The longer term sustainability of current rental rates current retail stock in the Ukrainian capital may double. will depend on the actual commissioning and quality of new sizeable pipeline retail schemes scheduled Majority of pipeline retail stock scheduled for opening for completion in 2013-2016 and beyond, as well as in Kyiv by 2016 are regional and super-regional general macroeconomic conditions in Ukraine and shopping malls. The formats of retail parks are yet to globally. appear in Ukraine. Kyiv Retroville Shopping and Entertainment centre Location and description Retroville Shopping and Entertainment centre will be located in Podilskyi district, on interception of two stratigically important arterial streets, Pravdy and Poryka avenues. Developer STOLITSA GROUP Architect UAB ‘GEDIMINO JUREVICIAUS STUDIJA’ Delivery 2015 GBA 104 496 sq m GLA 82 761 sq m Levels 2 Parking 3 600 spaces Anchors Food hypermarket, ice rink, fitness club, electronics, entertainment zone, cinema High Street Retail Khreshchatyk Street Location and Retail premises, located in the heart of Kyiv, on 34 Khreschatyk Street. 2 façade entrances, 7 large show windows on the description first level and 10 blocks with 2 show windows each on the second level. Owner Legal entity Intended Footwear and clothes stores, or restaurant use GLA 1446,4 sq m, which can be divided in two stores with separate entrances with areas of 700 sq m each. Levels 3 Kyiv Happy Mall Shopping and Entertainment centre Location and Happy Mall Shopping and Entertainment centre will be located in Golosiivskyi district on Trutenko Street, providing access description to several city districts. The shopping mall is planned for commissioning in 2014, becoming a major family shopping destination for daily visits from the densely populated neighbourhoods in Golosiivskyi and Solomianskyi administrative districts of Kyiv. DTZ DTZ was appointed by Liko Holding to provide concept optimisation, tenant mix development and architectural concept involvement optimisation services, as well as to become an exclusive leasing agent of this project. Developer Liko Holding Architect Chapman Taylor Delivery 2014 GBA 92 000 sq m GLA 42 000 sq m Levels 3 Parking 2 000 spaces Anchors Food supermarket, furniture, electronics, sport stores, entertainment zone, cinema Globus Shopping and Entertainment centre Location and Home to over 140 stores of the world’s leading fashion and lifestyle brands, GLOBUS is located at the historical central description square of Kyiv – Maydan Nezalezhnosti (in English – Independence Square). It started life, as a retail destination in the early 2001-2003, when the city decided to do a capital reconstruction of the square and Globus was built. Located both under and over Independence Square, with immediate metro access, Globus Shopping and Entertainment centre is perfectly situated to attract visitors 12 hours per day, 7 days per week. DTZ DTZ has been involved in the project as a leasing agent on behalf of the landlord. involvement Landlord London & Regional Architect Local architect Delivery 2002-2003 GBA 39 500 sq m GLA 18 600 sq m Levels 5 Anchors Billa, Brocard, New Look, Adidas, Walker, Oodji Odesa Population 1 010 900 inhabitants Major multi-tenant retail schemes Odessa: existing and in pipeline until 2016 Project Delivery Status Size (sq m) Developer Major brands / anchors Auchan, OBI, Comfy, 9-screen cinema 1. Riviera Shopping Argo Real Estate 2009 Operating 65 000 with IMAX, Leopark kid’s play, Jysk, City Opportunities Fund Inditex Group brands, LPP brands, others Food supermarket, DIY, electronic 2. Odessa City 2015 Planned 59 000 Amstor appliances store, furniture store, cinema, kid’s play Under BUD HOUSE Food supermarket, retail gallery, fitness 3. Zebra 2014-2015 38 000 construction GROUP centre Sport Life, cinema Silpo, Foxtrot, Comfy, Brocard, Igroland, 33 000 (phase 1) / 4. City Centre I 2012 / 2014 Operating local developer Piazza Italia, Detskiy Mir, Oodji, Intertop, 20 000 (phase 2) Adidas, Planeta Kino, M&S, others Under Tavria-V, Planeta Kino, Gloria Jeans, Oodji, 5. City Centre II 2014 20 120 local developer construction others Furshet, Comfy, Antoshka, Monton, 6. Srednefontanskiy 2007 Operating 19 530 Local developer Adidas, Bomond, Cinema Citi, Igroland , others Supply & Demand With a total population over 1 million inhabitants, Odessa is one of the largest cities of Ukraine located in its southern part. The city is an important trade sea port on the Black Sea and a popular tourist destination. Total modern retail stock in Odessa was estimated at around 420,300 sq m in October 2013, or 411 sq m (GLA) of modern retail stock per 1,000 inhabitants. The modern retail stock in Odessa has been dominated by multi-tenant retail centres and shopping malls, which presently account for approximately 65% of total stock in the sector. Big box retail developments account for the remaining 35% of total retail stock in the city. There are no retail parks or fashion outlets in Odessa, but several retail parks are scheduled for delivery in the city by 2017. The 65,000 sq m (GLA) retail and leisure centre Riviera Shopping City is the largest and most notable retail scheme in Odessa, which was developed by the LSE-listed company Argo Real Estate Opportunities Fund during 2009. The scheme is anchored by Auchan and OBI, while its gallery benefits from the presence of majority of quality retail brands operating in the city. Furthermore, despite after-effects of economic crisis, the opening of Riviera Shopping City triggered many new market entries in Odessa, including (but not limited to) real,- and later Auchan, OBI, IMAX, Inditex Group, Marks&Spencer, New Yorker, LPP (House, Cropp Town, Reserved). As of October 2013, there was over 270,000 sq m (GLA) retail space planned for delivery until late 2017. Out of this pipeline stock in the sector, DTZ projects that during the period from November 2013 through to late 2015 new supply in the retail property sector in Odessa will amount to around 87,000 sq m (GLA) formed by City Centre II, Zebra, Atrium and Equator in northern Kotovskyi neighbourhood, as well as extension to City Centre I.