Moscow is the third Europe’s most attractive city for retail and it is definitely the key to Russia. ADG group, a pioneering urban developer from Russia, presented ‘Moscow on a plate’ – its 39 Neighbourhood Centres’ Network – on an international retail and commercial real estate show MAPIC 2017.
Once all 39 objects commissioned in 2019, the network would become the largest Moscow retail project. Within its scale, ADG group’s project is an ideal platform for international business to enter Russian market.
Russia is the seventh world’s most attractive country to invest (Bloomberg, 2016). And Moscow is the Europe's third most attractive megapolis for retail and a city of early adopters (JLL, 2016). Muscovites take up new technologies, trends, and ideas and make them popular whether it comes to mobile contactless payments in public transport or e-government services. Last year, Moscow reached the top 5 world smart cities, according to PWC.
Yet there are about 12.3 million smart adopters in Moscow who experience a shortage of commercial real estate properties as well as a lack of modern and qualitative retail (retail density per thousand inhabitants in Moscow is 483 sqm, according to ADG group). A solution has been presented by ADG group at MAPIC 2017:
Grigory Pechersky, ADG group Managing Partner:
“We use MAPIC as a tool to communicate with the international retail world. Last year we introduced our Neighbourhood Centres’ network, this time we are back to make deals. Our project is a unique opportunity to take a big share of the Moscow market in one deal. Two anchor tenants already have been signed, and we consider this to be one of the most important proofs of our concept’s sustainability”.
In January, ADG group has signed supermarket chain Lenta which will open stores in 36 of the Neighbourhood Сentres. On October 23, CJ CGV and ADG group have announced the establishment of a new joint venture company that will develop a new cinema concept in Russia. The new company will become an anchor tenant in 33 ADG group’s Neighbourhood Centres project and Moscow #1 in terms of cinemas and #2 in terms of screens.
During MAPIC ADG group’s team held over 200 meetings with international retailers and brands, most of them included negotiations on the leasing details.
Earlier this year ADG group has been signed as a new member of the International Council of Shopping Centers (ICSC). “ADG group’s stand was one of the most interesting at this year’s MAPIC. Their project in Moscow is a case study in innovation,” said William Kistler, Executive Vice President and Managing Director EMEA, ICSC.