Russia is still among the most attractive destinations for investors in Eastern Europe, while Moscow is the best hub for potential foreign investments. ADG group, a pioneering urban developer from Moscow, presented a unique opportunity for business and investing to enter Russian market on the world`s leading property market MIPIM 2018, — its 39 Neigbourhood Centres Network in Moscow.
ADG group’s Neighbourhood Centres Network is a package of valuable investment opportunity as well as a guidance to Russian market and local government support. ADG group not just develops the retail project #1 in Russia, the company is the trendsetter for Russian commercial real estate developers. ADG group is a member of the International Council of Shopping Centers (ICSC). William Kistler, Executive Vice President and Managing Director EMEA, ICSC, earlier called 39 Neighbourhood Centres project “a case study in innovation”.
Grigory Pecherskiy, ADG group Managing Partner: “Moscow is an example of postindustrial city transformation into modern region of unique planning and architecture, attractive for local and international investments. Hosting FIFA World Cup 2018 and developing city`s infrastructure by the Government of Moscow both create business and cultural atmosphere needed to form positive investing climate, based on clear and fixed rules that are commonly used and understood by business and authority.”
The network of 39 Neighbourhood Centres is ADG group`s most ambitious and most innovative project yet. 39 former cinemas located in densely populated districts of Moscow, where there is an urgent need for quality shopping centres, will be reconstructed into a new asset class of commercial real estate. ADG group aims to qualitatively change the life of modern Moscow and provide enhanced cultural, shopping and entertainment facilities specific to the needs of city`s neighbourhoods.
Grigory Pecherskiy, ADG group Managing Partner: “ADG group examines customers` habits and follows the changes of demands. Neighbourhoods Centres project responds to one of the most perspective trends – proximity shopping. There are 2,5 million of Muscovites living in city`s district with the lack of motivation to visit substantial retail spaces in suburbs, spending hours on the road. ADG group developed Neighbourhood Centres project to fulfill their needs of shopping and entertainment in 15-minutes walking distance from their place of residence”.
Moreover, the traditional shopping malls’ model with fashion as an anchor has ceased to attract visitors. It doesn`t guarantee stable traffic and profit for business anymore. Due to the latest trends of retailtainment and F&B, the Neighbourhood Centres` concept offers visitors everything for qualitive time spending and superior shopping experience. ADG group developed a unique mix of retail and entertainment formats to provide effective opportunities for business and investors to make profit on Russian market.
ADG group has already signed supermarket chain Lenta to open stores in 36 of the Neigbourhood Centres. Besides, ADG group and world`s 5th cinema chain from South Korea CJ CGV are establishing a new joint venture company to develop a new cinema concept in Russia. The new company will become an anchor tenant in 33 ADG group`s Neighbourhood Centres, Moscow #1 in terms of cinemas and #2 in terms of screens.
The current project investment is set to be nearly 57 bln rubles (990m USD). The total GBA of 39 objects is 480,000 sq. m. Reconstruction started in spring 2017. Once all 39 objects commissioned in 2019, ADG group would become Moscow’s largest commercial real estate owner by the number of objects.