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Retail market overview Kiev and Ukraine,1st half of 2014
Retail market overview Ukraine,1st half of 2014
Shopping-center “Ocean mall”
Retail market overview Kiev and Ukraine,1st half of 2014
Social anН Оconomic situation oП UkrainО…………………………..………3
Supply in the market…………………………..………..……….9
AttОnНancО anН vacancв in tСО sСoppinР mall……….…..…14
Dвnamics oП rОntal ratОs……...…………………………………15
Demand analysis ………….………..…………………………..16
Contents
OvОrviОа oП tСО traНО rОal ОstatО markОt …………………………………..8
2
TraНО rОal ОstatО in tСО rОРions……………………………..…………..…18
Prospectives of ukrainian rОtail markОt …………………………….…..…41
Contacts……………………………..……………………………...……..…44
Trends and forecasts..…….………..…………………………..17
Retail market overview Kiev and Ukraine,1st half of 2014
Social and economic situation in Ukraine
3
Kiev, L.Ukrainki blv. / Mechnikova str.
Retail market overview Kiev and Ukraine,1st half of 2014
Fall of the flow of investments in economy
Slowdown of retail turnover growth
Reduction of the volume of industrial production
High level of inflation at the rate of 10,5%
To the end of the year level of inflation is
expected to be 17%
Reduction of GDP up to 5% by the end of year 2014
Economy characteristics Macroeconomic indicators
С а - а У а | I я 2014
GDP (I quarter 2014) - 1, 1%
Industrial production - 4,7%
Agricultural sector + 5,1 %
Investments - $6,2 bln.
Export - 7,4%
Import - 19,8%
Balance of trade - 9,1%
Retail turnover + 5,3%
Salary + 2,3%
CPI + 10,6%
National debt + 39%
Dramatic social and political events, active military actions, deep devaluation of the national currency led to the general
stagnation of economy, fall of GDP, growth of inflation rate and national debt, divestment, reduction of incomes and
purchasing power of citizens. On the grounds of low competitiveness, high level of energy and import dependence high
unpredictable risks for business development still remain. Significant decline of business activity in retail property section was
noticed: suspension of the projects, reducing of network development plans, fall of sales turnover, reducing of rent rates and
growth of vacancy.
4
Retail market overview Kiev and Ukraine,1st half of 2014
Dynamics of sold production of industry
544
721
948 913
1,083
1,302 1,411 1,455
313
-20
-15
-10
-5
0
5
10
0.00
200.00
400.00
600.00
800.00
1000.00
1200.00
1400.00
1600.00
2006 2007 2008 2009 2010 2011 2012 2013 2014
, . ,% Nominal GDP, bln. of UAH Real GDP, %
GDP According to official data Gross Domestic Product in Ukraine for
the first quarter was 313 047 mln. UAH. At the end of the year the government forecasts falling of GDP by 5%. National debt
According to data from the Ministry of Finance of Ukraine the national debt as of May 01 is 608,9 bln. UAH. Furthermore in structure of the national debt the internal debt is 292 bln. UAH, foreign debt is-316,9 bln. of UAH. Sector of industry
In May, 2014 compared with the previous month and May, 2013 index of industrial products correspondingly was 98,4% and 97,9%, according to results of January-May, 2014 – 95,4%. This led to fall of GDP of Ukraine in the I quarter of this year for 1,1%.
Dynamics of GDP
Dynamics of the national debt
469,840
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
2006 2007 2008 2009 2010 2011 2012 2013 2014
, . Volume of sales, mln. of UAH Change
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
2008 2009 2010 2011 2012 2013 2014
, . , .
. Foreign debt, mln.UAH
National debt
Internal debt, mln. UAH
5
Retail market overview Kiev and Ukraine,1st half of 2014
52179.4
0%
10%
20%
30%
40%
50%
0$
10,000$
20,000$
30,000$
40,000$
50,000$
60,000$
70,000$
2007 2008 2009 2010 2011 2012 2013 2014
я У ( я, . . Ш )
, %
Direct foreign investments in Ukraine, mln. USD
Dynamics to the previous period, %
Dynamics of direct foreign investments in Ukraine
109.9% 115.6%
84.2%
51.8%
94.6%
111.0%
86.0% 85.5% 93.5%
2006 2007 2008 2009 2010 2011 2012 2013 2014
Index of construction works
May
Investments
According to official data, for the first quarter of year 2014 volume of outward investments reduced by 10,6% ($ 6,2 bln.), compared to beginning of year 2014. Reducing of the volume of investments caused by currency difference.
As it was expected, foreign investors are not risking to invest in business because it is impossible to plan further events in the country in relation of the current situation.
The best conditions for business development in Ukraine now concentreted in Lviv, Ivano-Frankivsk and Odesa regions.
Construction
According to data from government statistics, in January – May, 2014 construction works were done for 17 bln. 325,8 mln.UAH and it is less by 6,5% than figures of the same period of the last year.
891 784
673 596
693
452 505 467 487 520
7.8% 7.4%
5.9%
6.9%
9.6% 8.8% 8.6%
8.1% 7.7%
9.3%
0
100
200
300
400
500
600
700
800
900
1000
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
У Registered unemployed Unemployment rate
Unemployment rate
6
Aprill
Retail market overview Kiev and Ukraine,1st half of 2014
0
20
40
60
80
100
120
140
160
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
20
14
I
Э Export Import
1042 1351
1806 1906 2239
2633
3026 3268 3244
9% 13%
25%
16%
9% 8% 1%
1%
11%
25% 29%
19%
-17%
8%
15% 16%
10% 5%
-20%
-10%
0%
10%
20%
30%
40%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4 I
qu
art
er
Average salary
Consumer price index
Dynamics of retail turnover
Consumer market of Ukraine
Dynamics of export/import
Goods turnover
Retail turnover of retail enterprises of Ukraine in
January-April of year 2014 increased in constant prices by 5,6% in comparison with January-April of year 2013. In nominal terms retail turnover for four months of the current year is 271,139 bln. UAH. CPI
In May consumer price index was 10,5%. Inflation in Ukraine in 2014 may rise to 17-19% under influence of UAH devaluation and rise of regulated tariffs.
Import / export
According to results of January-May 2014
export of goods exceeded import by 524,5 mln. dollars. Separate product groups affected formation of positive balance: ferrous materials ($ 5,4 bln.), cereal crops ($ 2,4 bln.), fats and oils of animal or vegetable origin ($ 1,6 bln.), ores, slugs and ash ($ 1,4 bln.). In general, export of goods from Ukraine reduced by 5,1% and import reduced by 18%. Now it is observed the tendency of redistribution of export –increasing of growth in goods export in Egypt by 41,9%, Poland – by 21,6%, Italy – by 10,9%, Germany – by 10,7%, China – by 9% and Hungary – by 3% and it is reduced in Russia by 23,9%, India – by 7,7% and Turkey – by 5,2%
7
Retail market overview Kiev and Ukraine,1st half of 2014
Retail market overview Kiev
8
Shopping mall «Ocean Plaza»
Retail market overview Kiev and Ukraine,1st half of 2014
Professional retail premises per 1,000 people, sqm Aggregate supply of professional retail premises in dynamics, sqm, %
Supply To the end of June 2014 in Kyiv operate 4 regional malls, 24 community, 9 neighborhood, 12 specialized shopping centers and 21
separate hypermarkets. In accordance with ICSC classification, without consideration of small shops with the area up to 5 thousand sqm and hypermarkets, total GLA is 1,023,319 sqm, which corresponds 356.6 sqm per 1,000 citizens by the level of retail premises sufficiency.
Overall market supply was added by in 2014 commissioning of Shopping mall “Atmosphere” (opened on April 12), Shopping mall “Appetite” (April 24) and DIY hypermarket “Leroв Merlin” (March 5). By the end of 2014 other shopping malls are expected to be opened: “ProspОct” (GLA = 41,400 sqm) and “Raduga” (GLA = 7,000 sqm). For 2015, there claimed to be opened other 4 new shopping malls (“Respublika”, “BlockbustОr Mall”, “Lavina Mall”, “Podol Mall”) and 2 centers: 1) on Verbytskoho St., 2) on “Heroyiv Dnipra” subway station with total gross leasable area (GLA) around 424,500 sqm, which will increase the volume of the market supply and lead to further growth of competition.
Supply in the retail market in Kyiv
9
72.3
89.2
123.3
181.6
198.6
203.7
204.1
230.0
256.0
279.3
306.8
356.6
373.3
392.7
496.6
0 100 200 300 400 500
Zaporozhe
Chernigov
Kirovograd
Lvov
Khmelnitsky
Ivano-Frankovsk
Donetsk
Kherson
Simferopol
Nikolayev
Lutsk
Kiev
Dniepropetrovsk
Odessa
Chernovtsy
281 297 313 343 379 486 640
749 842 993 1,071
16 16 16 30 36 64
99 93
172 78
424
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14F
20
15F
New offer, GLA, thou. m2
Total GLA at the beginning of year, thou. m2
YoY growth, %
Retail market overview Kiev and Ukraine,1st half of 2014
Operating shopping malls in Kyiv
No Regional SM Address Year of starting
GLA, sq.m.
1 Dreamtown (1,2phase) Obolonskyi Ave. 2009 81 000
2 Ocean Plaza Horkoho St., 174 2012 70 000
3 Sky Mall Henerala Vatutina Ave., 2 2007 67 000
4 Karavan Luhova St., 12 2008 44 000
No CircularSM Address Year of starting
GLA, sq.m.
5 Bilshovyk Hetmana St., 6 2008 37 000
6 Gulliver Sportyvna Sq.,1 2013 45 200
7 Marmelade Borshchahivska St., 154 2013 40 000
8 Art Mall Ak. Zabolotnoho St.,37 2013 37 000
9 Promenada Center Bahhovutivska St., 17-21 2003 34 000
10 Promenada Park V. Okruzhna St., 4 2009 32 000
11 Gorodok Moskovskyi Ave., 23 2003 7 000
12 “UkrainО” dept.store Peremohy Ave., 3 2003 23 000
13 Rayon Lavrukhina St., 4 2012 23 000
14 Arkadiya (Materyk-2) Dniprovska nab.,10a 2008 22 000
15 Magellan Hlushkova St., 13 2003 21 600
16 Kvadrat Perova Ave., 36 2008 19 000
17 Globus (1,2,3 turn.) Maidan Nezalezhnosti, 1 2002 18 579
18 Alta Center Moskovskyi Ave., 15 2004 17 000
19 Arkadiya (Materyk) Borshchahivska St., 154 2007 17 000
20 Metropolis Malynovskoho St., 12 2005 15 284
21 Silver Breeze Dniprovska Nab. 2013 14 600
22 Metrograd V. Vasylkivska St. 2002 11 000
23 Piramida Myshuhy St., 4 2004 12 000
24 Plasma Moskovskyi Ave., 20 2006 12 000
25 Alladin Hryshko St., 3-5 2004 10 030
26 Atmosfera Stolychne shosse, 103 2014 30 000
27 Arena City Chervonoarmiyska/ Basseina 2005 8 000
28 KOMOD Lunocharskoho St., 4 2007 7 647
No DistrictSM Address Year of starting
GLA, sq.m.
29 VMB Peremohy Ave, 136 2004 5 000
30 Kvadrat Hnata Yury St., 20 2003 11 502
31 Polyarnyi Maiorova St., 2 2013 8 630
32 Olimpiyskyi V. Vasylkivska St., 72 2004 8 250
33 Europort Lukashevycha St., 15 2005 4 195
34 Interval Plaza V. Vasylkivska St.,143/2 2004 7 874
No District SM Address Year of starting
GLA, sq.m.
35 Kvadrat Biloruska St., 2 2002 6 000 36 in Silver Sribnokrylska St., 3 2011 5 909 37 Darnytsa Vozjednannya Ave, 2/1 2008 5 830
No Specialized Address Year of starting
GLA, sq.m.
38 Detskiy mir O. Malyshka St., 3 1987 8 000 39 Blockbuster Moskovskyi Ave., 34 2008 24 750 40 4 ROOM (furniture) Petropavlivska St., 6 2009 24 000 41 Arax (furniture) V. Okruzhna St., 110 2009 16 000 42 Ultramarine Urytskoho St., 1 2004 15 000 43 Manufactura (outlet) Novoobukhivske shosse., 2 2013 15 000 44 Diamant (furniture) Petropavlivska St., 14 2013 11 250
45 Macros (outlet) Moskovskyi Ave., 16 2004 8 286
46 Dom mebeli Druzhby Narodiv Blvd., 23 1984 16 000 47 -52 (furniture) Bratyslavska St., 52 2008 12 003 48 Domosfera (luxury) Stolychne shosse, 101 2009 24 500 49 Mandarin Plaza Baseina St., 4 2003 9 400
No Separate
hypermarkets Address
Year of starting
GLA, sq.m.
50 Epicenter (DIY) Viskozna St., 4 2008 11 000 51 Epicenter (DIY) Kryshtaleva St., 6 2008 12 000 52 Nova Liniya (DIY) Balzaka St., 65/1 2004 6 795 53 Nova Liniya (DIY) Odesske shosse, 8 2005 13 131 54 Metro (Cash&Carry) Moskovskyi Ave., 26- 2005 9 500 55 Metro (Cash&Carry) Saburova St., 2- 2009 9 500 56 Metro (Cash&Carry) P. Hryhorenko Ave., 43 2004 9 500 57 Metro (Cash&Carry) V. Okruzhna St., 1- 2003 9 500 58 Auchan Petrivka Moskovskyi Ave., 15 2008 15 000 59 Auchan Belichi Berkovetska St., 6 2009 15 660 60 Epicenter (DIY) Bratyslavska St., 11 2008 12 000 61 Epicenter (DIY) V. Okruzhna St., 1- 2005 30 000 62 NOVUS Ak. Palladina Ave., 7 2010 4 008 63 Leroy Merlin (DIY) Poliarna St., 17 2010 13 000 64 Leroy Merlin (DIY) Brovarskyi Ave., 3 2013 ~10000 65 Leroy Merlin (DIY) Saperno-Slobodska St., 26 2014 ~10000 66 Epicenter (DIY) Hryhorenko St., 40 2005 43 000 67 NOVUS Chervonozorianyi Ave., 4 2013 8 800 68 NOVUS Chervonohvardiiska St., 1 2013 6 000 69 NOVUS Bazhana Ave., 8 2013 6 500 70 Epicenter (DIY) Berkovetska St., 6 2009 56 000
10 10
Retail market overview Kiev and Ukraine,1st half of 2014
Map of existing and prospective trade centers in Kyiv
Regional Mall
Community Center
Neighborhood Center
Supermarkets
Specialized Center
Regional trade centers : 1) Dreamtown (1 and 2 turns) - Obolonskyi Ave. 2) Ocean Plaza – Horkoho St., 174 3) Sky Mall – Henerala Vatutina Ave., 2 4) Karavan - Luhova St., 12 Circular trade centers: 5) Bilshovyk - Hetmana St., 6 6) Gulliver – Sportyvna Sq.,1 7) Marmelade - Borshchahivska St., 154 8) Art Mall - Ak. Zabolotnoho St.,37 9) Promenada Center - Bahhovutivska St., 17-21 10) Promenada Park - V. Okruzha St., 4 11) Gorodok - Moskovskyi Ave., 23 12) Department store “Ukrayina" - Peremohy Ave., 3 13) Rayon - Lavrukhina St., 4 14) я (Materyk-2) - Dniprovska Nab..,10a 15) Magellan - Hlushkova St., 13 16) Kvadrat - Perova Blvd., 36 17) Globus (1,2,3 turns) - Maidan Nezalezhnosli , 1 18) Alta center - Moskovskyi Ave., 15 19) Arkadiya (Materyk) - Borshchahivska St., 154 20) Metropolis - Malynovskoho St., 12 21) Silver Breeze - Dniprovska Nab.. 22) Metrograd - V. Vasylkivska St. 23) Piramida - Myshuhy St., 4 24) Plasma - Moskovskyi Ave., 20 25) Alladin - Hryshko St., 3-5 26) Atmosfera - Stolychne shosse, 103 27) Arena City - Chervonoarmiyska/ Basseina 28) KOMOD - Lunocharskoho St., 4 District trade centers: 29) VMB - Peremohy Ave., 136 30) Kvadrat – Hnata Yury St., 20 31) Polyarnyi - Maiorova St., 2 32) Olimpiyskyi - V. Vasylkivska St.,72 33) Europort – Lukashevycha St., 15 34) Interval Plaza - V. Vasylkivska St.,143/2 35) Kvadrat – Biloruska St., 2 36) in Silver - Sribnokrylska St., 3 37) Darnytsa – Vozjednannia Ave., 2/1 Specialized trade centers: 38) Detskiy mir - O. Malyshka St., 3 39) Blockbuster - Moskovskyi Ave., 34 40) 4 ROOM (furniture) - Petropavlivska St., 6 41) Arax (furniture) – V. Okruzhna St., 110 42) Ultramarine – Urytskoho St., 1 43) Manufactura (outlet) – Novoobukhivske shosse,2 44) Diamant (furniture) - Petropavlivska St.,14 45) Macros (outlet) - Moskovskyi Ave., 16 46) Dom mebeli – Druzhby Narodiv Blvd.,23 47) -52 (furniture) – Bratyslavska St., 52 48) Domosfera (luxury) – Stolychne shosse, 101 49) Mandarin Plaza – Basseina St., 4
11 11
Retail market overview Kiev and Ukraine,1st half of 2014
Prospective supply In the Kiev retail market are about 30 projects of shopping malls with total gross leasable area about 1.57 mln. sq.m. at different stages (stage of
designing, beginning of building, suspended building) with possible opening in 2015-2017. Prospected big professional shopping malls are the main objects of future development for Ukrainian and foreign retail networks. Their commissioning will cause a considerable growth of the market and (under condition of wealthy people) will facilitate further expansion of international retailers.
Prospective trade centers of Kyiv
* - UTG concept
** - UTG lease/
concept
No Name Address GLA, sq.m. Developer Opening
1 Respublika** Kiltseva Doroha, 1 135,000 K.A.N. Development 1 Q. 2015
2 Happy Mall O. Trutenko St. 42,000 Liko-Holding 2016
3 Lavina mall** Ak. Palladina Ave. 124,000 Local developer 2015
4 Prospekt Chervonohvardiiska St. / Chervonotkatska St. 41,400 Arricano Development 2014
5 Blockbuster Mall** Moskovskyi Ave.,36 120,000 Local developer 2015
6 Retroville Pravdy Ave. 83,061 Local developer 2016
7 TSUM Khreshchatyk St.,38 20,000 ESTA Holding 2016
8 HARTZ Zlatoustivska St. 68,000 Budhouse Group 2016
9 Lukyanivka Dehtiarivska St., 7-7 47,052 Arricano Group 2016
10 Manhatan Mall* Inzhenerna St.,1 69,200 Forum Evolution 2016
11 Kvadrat Vyrlytsia Bazhana Ave. 70,000 ХХI century suspended 12 River mall Dniprovska Nab.., 10,14 55,000 Local developer suspended 13 Victoria* N. Vasylenka St., 2 54,300 Viktoriya suspended 14 Kyiv mall P. Hryhorenko Ave. 75,400 Delise suspended 15 Auchan (SM) Zdolbunivska St. 55,000 Immochan project 16 Ocean Plaza (3 turn)* Antonovycha St., 176 40,000 K.A.N. Development project 17 Epicenter Bohatyrska St. 100,000 suspended
18 Horkoho park Horkoho St., 52-54 64,500 Silver Sky Development project
19 Gorodok (2 turn)* Moskovskyi Ave., 23 29,650 KEMZ Svarka project
20 SM on Poshtova Sq. Poshtova Sq. no data No data project
21 Petrovka Mall* Moskovskyi Ave., 10 65,360 Tiko Construction project
22 Nivki City* Peremohy Ave. 74,036 Local developer project
23 Univer City Volodymyrska St./ L. Tolstoho 18,700 Kyivmiskbud Invest project
24 Kiev E95 (1 turn) Odesske shosse 18,525 Evo Land Development project
25 Podol Mall Mezhyhirska St. / Olenivska, 23 20,700 Building Invest Group 2 Q 2015
26 SM on Sklyarenko str* Syretska St. / S. Skliarenko 15,000 Local developer 2016
27 Avenue Kosmonavta komarova St., 48 39,000 Dragon & Tiko Construction 2016 28 SM on Verbitskogo str* Verbytskoho St., 32 17,000 Local developer 2 Q. 2015 29 SM on geroev dnepra* Subwaystation Heroiv Dnipra 7,800 Local developer 3 Q. 2015
30 Raduga** Brovarskyi Ave. / Budivelnykiv St. 7,000 Local developer 4 Q. 2015
Future supply 1 569 684
12 12
Retail market overview Kiev and Ukraine,1st half of 2014
Trade centers of Kyiv, claimed to be opened in 2014-2015
SM «Prospect»
Kyiv, Chervonohvardiiska St.
GLA – 41,400 sq.m.
SM «Respublika»**
Kyiv, Kiltseva doroha, а
GLA – 135,000 sq.m.
SM «Lavina mall»*
Kyiv, Ak. Palladina Ave.
GLA – 124,000 sq.m.
SM «Happy Mall»
Kyiv, O. Trutenka St.
GLA – 42,000 sq.m.
SM «Blockbuster Mall»**
Kyiv, Moskovskyi Ave.
GLA – 120,000 sq.m.
SM «Kiev mall»
Kyiv, P. Hryhorenko St.
GLA – 75,400 sq.m.
SM «Vyrlytsia»
Kyiv, Bazhana Ave.
GLA – 70,000 sq.m.
SM «Petrovka Mall»*
Kyiv, Moskovskyi Ave., 10
GLA – 65,360 sq.m.
SM «Manhattan Mall»**
Kyiv, Inzhenerna St., а
GLA – 69,200 sq.m.
SM «TSUM»
Kyiv, Khreshchatyk St., 38
GLA – 20,000 sq.m.
SM «HARTZ»
Kyiv, Zlatoustivska St.
GLA – 68,000 sq.m.
SM «River mall»
Kyiv, Dniprovska Nab.,10-14
GLA – 55,000 sq.m.
Projected trade centers of Kyiv
13 13
Retail market overview Kiev and Ukraine,1st half of 2014
0.9
%
3.1
%
2.9
%
2.7
%
2.7
%
2.3
%
2.3
%
2.3
%
2.4
%
2.3
%
2.0
%
1.8
%
1.8
%
2.0
%
2.0
%
2.1
%
2.4
%
3.3
%
0%
1%
2%
3%
4%
Jan
13
Fe
b 1
3
Ma
r 1
3
Ap
r 1
3
Ma
y 1
3
Jun
e 1
3
July
13
Au
g 1
3
Se
p 1
3
Oct
13
No
v 1
3
De
c 1
3
Jan
14
Fe
b 1
4
Ma
r 1
4
Ap
r 1
4
Ma
y 1
4
Jun
e 1
4
13
50
11
61
11
53
11
21
98
2
99
2 11
33
80
0
85
0
10
80
10
90
11
87
10
54
10
40
10
40
99
8
96
0
81
9
65
5
57
0
44
0
54
4
52
0
45
0
43
7
43
7
45
0 56
3
63
0
67
2
62
5
65
4
72
7
71
1
72
0
74
6
0
200
400
600
800
1000
1200
1400
1600
Jan
13
Fe
b 1
3
Ma
r 1
3
Ap
r 1
3
Ma
y 1
3
Jun
e 1
3
July
13
Au
g 1
3
Se
p 1
3
Oct
13
No
v 1
3
De
c 1
3
Jan
14
Fe
b 1
4
Ma
r 1
4
Ap
r 1
4
Ma
y 1
4
Jun
e 1
4
Attendance in community malls Attendance in regional malls
Attendance
Average market attendance of Kyiv trade centers by results of 1st
half-year of 2014 is: for regional SM 697 people per 1,000 sq.m. GLA, for community SM - 985 people per 1,000 sq.m. GLA. Concerning the first 6 months, average market attendance in SM of regional format increased by 31.6% (530 people per 1,000 sq.m. GLA), meanwhile in SM of community format decreased by 12.5% (1,127 people per 1,000 sq.m. GLA). Redistribution of the flows just emphasizes the fact that there are crisis phenomena in the market – attendance of circular SM decreases, meanwhile attendance of SM of regional and neighborhood format has remained on the previous level or even increases.
The highest attendance at the level of 30-40 thousand people on weekdays and up to 60 thousand on days-off is in SM “OcОan Plaгa”, SM “Skв mall”, SM “DrОam Toаn” (1 phase), SM “Karavan”.
Average daily attendance of SM (people per 1,000 sq.m. GLA)
Vacancy
By the end of first six months of 2014, in conditions of increasing
market supply during 2012-2014 years, shrinking plans of development from retailers, complicated economical situation, average level of vacancy in existing shopping malls of Kyiv is 3.3%. For some new big trade facilities, putted into service in the end of 2013 – beginning of 2014, vacancy can exceed 50%. Taking into account their influence on the market, calculated average market vacancy will increase to 7.5%
Appearance of free space can be witnessed even for the most successful trading centers - SM “OcОan Plaгa”, SM “DrОam Toаn” (1 phase), SM “Skв Mall”, that traditionally are characterized as having no vacant premises.
Average vacancy in SM of Kyiv
Attendance and vacancy on retail market of Kyiv
2014 2013
2014 2013
Source: UTG
14
Retail market overview Kiev and Ukraine,1st half of 2014
Lease rates in the trade centers of Kyiv
Lease rates in Kyiv
Following devaluation of UAH and unpredictable situation with the exchange rate to US dollar, taking into account decrease of real incomes of the Kyiv inhabitants and general decrease of consumer sentiments, managing companies of Kyiv SM in the first half of 2014 reviewed conditions for the tenants (first of all for those whose turnover decreased significantly) lowering the rental rate by 10-30% in USD equivalent or fixing the agreed exchange rate until the situation stabilizes.
Thus, lease rates decreased to $30-80/sq.m./mo (w/o OPEX) depending on the location of SM, its attendance, popularity, tenants mix and anchors with average market value of $49.7/sq.m./mo for premises in fashion gallery with the area of 100-200 sq.m..
A scheme of payment from the per cent of the turnover is also spread – 2-5% for anchor tenants and 7-15% for the operators of the trade gallery.
Lease rates in SM of Kyiv in 2007-2014, USD, %
Taking into account an increase of the market supply with opening of the projected objects for 2014-2015, due to unfavourable situation in the country one can expect stabilization of the rental rates in Kyiv SM. If the periods of putting into operation the new objects is postponed, when econonomic and investment climate improves, the lease rates may return to the previous level.
Lease rates in Kyiv SM ($ / sq.m. / mo w/o OPEX)
Typical conditions of tenancy in the trade centers
Period of rent From 3 to 10 years, for anchors is 5-15 years
Terms of
payment
The rates are nominated in USD, payment in UAH is made by
the agreed exchange rate, annual indexation at CPI
Deposit From 1 to 3 months, guarantee is possible for anchors
Condition of
premises Shell and core
15
$130.0 $142.0
$59.0 $58.3 $65.3 $70.0 $70.0
$49.7
9%
-58%
-1% 12% 7%
0%
-29%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
-$
20$
40$
60$
80$
100$
120$
140$
160$
20
07
20
08
20
09
20
10
20
11
20
12
20
13
1H
201
4
Average lease rates for a lot of 100-200 m2, $/m2/mo (w/o OPEX)
YoY growth, %
$12
$15
$30
$15
$8
$6
$6
$25
$25
$25
$80
$30
$18
$15
$12
$55
Grocery supermarkets
Electronics supermarkets
Fashion gallery (100-200 m2)
Department stores and large clothesshops (600-1,500 m2)
Cinema
CСilНrОn’sОntОrtainmОnt cОntОr
Bowling / Billiards
Restorants and Cafes
ax
in
Retail market overview Kiev and Ukraine,1st half of 2014
Demand at retail market of Kyiv
16
Demand
Political crisis and economic drop make adjustments
to the development of the trade real estate of the capital: according to the results of the first quarter of 2014, the operators encountered considerable decrease of the goods turnover and weak consumer activity. Starting from April the situation improved a little and the most successful SM demonstrated positive dynamics: huge retail traders of the fashion gallery in the segment “mОНium” and “mОНium” increase their turnover, the cafes and restaurants increase their sales.
Foreign operators continue their expansion into Ukrainian market: 10 new international brands opened in the country during the first six months of 2014.
Negotiations with big international operators continue. They are not in the Ukrainian market and they are expected to be launched in 2015 together with opening large-scale projects: “Respublika”, “BlockbustОr Mall”, “Lavina Mall”.
One can observe movement of the tenants – retailers optimize their business by moving their stores from unprofitable SM and opening in more successful SM.
Due to tense military situation and combat activities in the east of Ukraine, many operators wrap up their business in Donetsk and Luhansk regions and move to more favorable regions (Lviv, Kyiv).
Brand Country SM
Opened in the first half of 2014.
Pedro del Hierro, clothing Spain Gulliver
Sinsay (LPP Group), clothing Poland King Cross (Lviv)
Keddo, shoe shop UK Khreshchatyk St
Vittorio Spernanzoni, shoes Italy Saksahanskoho St
Twin Set, АomОn’s clotСinР
Italy Gulliver
Paker, multibrand shoe shop - Ocean Plaza
Coffee Shop Company Austria Lviv, 2 Soborna Sq.
Paul, confectionery France 26 Yaroslaviv Val St.
Calzedonia, linen Italy Karavan
Intimissimi, linen Italy Karavan
Projected launch by the end of 2014/2015
Nespresso, coffee shop Sweden -
Vapiano, network restaurant Germany SM Arena City
Peacocks, clothing UK
Retail market overview Kiev and Ukraine,1st half of 2014
Trends and forecasts
Total market supply of trade objects in Kyiv in accordance with the summary of the first half of 2014 was added by SM “AtmospСОrО” and SM “Apetite” with leaseable area 33,934 sq.m..
Total volume of supply of quality trade spaces in Kyiv is 1,027,253 sq.m., which corresponds the index of 356,6 sq.m. per 1,000 people.
SM “ProspОct” (GLA = 41,400 sq.m.) and SM “Raduga” (GLA = 7,000 sq.m.) are expected to be opened by the end of 2014.
Due to instable, weakly forecastable situation in Ukraine the dates of opening some of the objects were moved to later dates. SM “Respublika”, “Blockbuster Mall”, “Lavina Mall”, “Podol Mall”, SM on Verbytskoho St and on subway station “Heroyiv Dnipra” are announced to be launched for the year 2015. Total leaseable area of the objects are – 424,500 sq.m..
By the end of the first half of 2014, consumer activity in the market, stabilization of the volumes of the opОrators’ turnover, activization of concluding rent contracts are observed.
Movement of the tenants is witnessed – retail-operators optimize their business by moving their shops from non-profitable SM and opening in more successful ones.
Expansion of foreign operators to Ukrainian market continues: 10 new international brands opened in the first half of 2014.
Expansion of domestic and foreign operators is mainly connected with development in million-plus cities. Traditionally Kyiv remains the key region in retail development, at the same time western regions of the country become more popular, especially Lviv city.
Following the results of the first half of the year, vacancy level in Kyiv SM increased by 3.3% which is connected with closing of some shops, leaving of the part of foreign companies, active movement of tenants to more quality objects. The least popular objects can have a level of vacancy exceeding 50%.
17
Trends and forecasts
Retail market overview Kiev and Ukraine,1st half of 2014 18
Overview of the retail market in regions of Ukraine
Retail market overview Kiev and Ukraine,1st half of 2014
Retail market in the regions of Ukraine
Availability of trading spaces in some cities of Ukraine as of the end of the second half of 2014.
In the first half of 2014, 2 new trading centers were commissioned in regional cities of Ukraine, second turns in other two SM were also completed.
“PortCity” 1 Sukhomlynskoho St, Lutsk GLA – 54 000 sq.m. GBA – 26 090 sq.m.
Сity Сenter “Kotovskyi” 32 Zatonskoho St., Odesa GLA – 29 000 sq.m.
“Karavan” (2nd phase) 17 Nyzhniodniprovska St, Dnipropetrovsk GBA - 13 100 sq.m.
“Yuznaya Galereya” (2nd phase) 189- Kyivska St, Simferopol GLA - 19 700 sq.m.
19
72.3
89.2
123.3
181.6
198.6
203.7
204.1
230.0
256.0
279.3
306.8
356.6
373.3
392.7
496.6
0 100 200 300 400 500
Zaporozhe
Chernigov
Kirovograd
Lvov
Khmelnitsky
Ivano-Frankovsk
Donetsk
Kherson
Simferopol
Nikolayev
Lutsk
Kiev
Dniepropetrovsk
Odessa
Chernovtsy
Retail market overview Kiev and Ukraine,1st half of 2014
Overview of the retail market in Dnipropetrovsk
Renovated SM “Slavutych”
20
Retail market overview Kiev and Ukraine,1st half of 2014
Supply
Market of quality trade premises in Dnipropetrovsk is in the growth phase.
Trade centers “Nasha Pravda” (GLA = 12,500 sq.m.) “Nagornyi” (GLA ~ 3,760 sq.m.) and “Slavutych” (GLA = 9,150 sq.m.) opened in 2013.
New trade centers are not being built in Dnipropetrovsk in 2014. For the projects that had been announced earlier, one can witness suspension of the realization or transfer of the date of opening for later dates (SM “Karavan”, “MaРОllan”, “Voskhod”, “HousО of TraНО”).
Altogether, 2 shopping malls are announced to opened in the future.
Supply in the retail market of Dnipropetrovsk
Name Address Year GLA,m2
Shopping malls
Karavan 17 Nyzhnyodniprovska St 2008 77,873 MOST – City Center 2, Glinki St 2006 60,000 Appolo 36 Titova St 2009 20,000 Pryozernyi 1 Bobrova St 2011 21,620 Dafi 1-A Zoryanyi blvd 2005 15,000 Materyk 5 Mariyi Kuri St 2006 11,260 Grand Plaza 67-D Karl Marx St 2002 9,000 Miriada 9 Kalynova St 2007 8,686 Nautilus 8-D Kalynova St 2011 4,576
Trade centers
Slovyanskyi 1 Kurchatova St 2011 8,260 Slavutych 104- Kirova Avenue 2013 9,150 Europa 1D Evropeyskyi blvd. 2005 5,000 Terra (12 block) 118D Heroyiv Stalingradu 2007 8,000 Pryvokzalnyi (2 wings) Petrovskoho Avenue 2005 5,037 Atrium 22 Karl Marx Avenue 2006 4,650 Babylon 2 Marshal Malinovskyi St 2007 14,000 Novyi Continent 86 Naberezhna Peremohy 2005 6,500 Terra 15 Panikakhy St 2003 6,300
Cascade Plaza 1 Katerynoslavskyi blvd 2012 11,920 Passage 50 Karl Marx Avenue 2011 13,000 Nasha Pravda 31-D Pravda Avenue 2013 12,500 Nagornyi 8 Haharina Avenue 2013 3,760 Bosfor 2 Katerynoslavskyi blvd 2005 2,064 TSUM 52 Karl Marx Avenue 1939 / 1990 16,000 Miriada Fashion Style 11 Kirova Avenue 2008 6 ,00
Specialized trade centers
Epicenter (DIY) 25 Babenko St 2005 22,100 Epicenter (DIY) 62-К Zaporizka St 2011 17,000 Nova liniya (DIY) 9- Startova St 2006 14,500 Stroycenter (DIY) 2 Panikakhy St 3,000 Biennale (furniture) 53 Kosmichna St 2007 8,050 METRO (Cash&Carry) 1 Kashtanova St 10,200 METRO (Cash&Carry) 63 Zaporizke shose 2005 10 200
31 65
141 178
263 283 283 330 342
367
34
76
38
84 20 0
47 12 25
-150%
-100%
-50%
0%
50%
100%
150%
0
50
100
150
200
250
300
350
400
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
GLA, . 2
GLA, . 2
, %
Aggregate supply of trading spaces of Dnipropetrovsk in dynamics of 2005-2014, GLA thou. sq.m., %
21
Retail market overview Kiev and Ukraine,1st half of 2014
Map of the existing trade centers in Dnipropetrovsk city
SHOPPING MALLS: 1) KARAVAN, SM – township Yuvileyniy, 17 Nyzhnyodniprovska St. 2) MOST- City center, SM – 2 Glinki St 3) Appolo, SM – 36 Titova St 4) Pryozernyi, SM - 1 Bobrova St 5) Dafi, SM - 1- Zoryanyi blvd 6) Materyk, SM - 5 Mariyi Kuri St 7) Grand Plaza - 67- Karl Marx St 8) Miriada, SM – 9 Kalynova St 9) Nautilus, SM - 8- Kalynova St TRADE CENTERS: 1) Slovyanskyi, SM – 1 Kurchatova St 2) Slavutych, SM - 104- Kirova Ave 3) Europa, SM - 1 Evropeyskyi blvd. (10 Tsentralna St) 4) Terra (12 block), SM - 118 Heroyiv Stalingradu 5) Pryvokzalnyi (1 and 2 wings) - 6) Atrium, SM - 22 Karl Marx Ave 7) Babylon - 2 Marshal Malinovskyi St 8) Novyi Continent, SM - 86 Naberezhna Peremohy 9) Terra, SM – 15 Panikakhy St. 10) Cascade Plaza - 1 Katerynoslavskyi blvd 11) Passage, SM - 50 Karl Marx Ave 12) Nasha Pravda, SM - 31- Avenue named after Pravda newspaper 13) Nagornyi, SM - 8 Haharina Ave 14) SM Bosfor- 2 Katerynoslavskyi blvd/ 1 Vykonkomivska St 15) TSUM, SM - 52 Karl Marx Ave 16) Miriada ("Fashion Style»), trading and office center – 11 Kirova Ave SPECIALIZED CENTERS: 1) Epicenter - 25 Babenko St, township Yuvileyniy 2) Epicenter - 62-К Zaporizka St 3) Nova liniya, SM - 9- Startova St 4) Stroycenter - 2 Panikakhy St 5) Furniture cente Biennale - 53 Kosmichna St 6) Metro (METRO Cash&Carry) – 1 Kashtanova St, township Yuvileyniy 7) Metro (METRO Cash&Carry) - 63 Zaporizke shose
25 22
Retail market overview Kiev and Ukraine,1st half of 2014
Overview of retail market in Donetsk
SM «Д ецк-Сити»
23
Retail market overview Kiev and Ukraine,1st half of 2014
Building of new trade centers is deterred by instable market and economic situation in the country.
From the 10 existing and suspended/frozen projects with total leasable area around 234,000 sq.m., the most realistic is commissioning and putting into operation the biggest in the region SM “RosО Park” (2nd turn) and SM “Yuzhnye sklony”, located on the key transportation roads that connect residential districts with the center of the city.
Declared dates of opening (2014) due to instable situation in the region and probability of military operations, definitely will be moved to later periods.
Name Address Year GВA, sq.m.
GLA, sq.m.
Donetsk-city 130 Artem St. 2006 70,000 32,000
Continent 51 Pervomayska St. 2009 23,197 15,870
Beliy lebid 143 Artem St. 2004 25,000 17,500
Zolotoe koltso 2 Komunariv sq. 2003 10,142 7,500
Obzhora 11 Leninskyi Ave 2003 10,800 7,000
Obzhora Street named after 230th infantry division, 8
2006 6,900 6,600
Green Plaza Artem St.51 2010 11,050 7,500
Amstor 10- Zemlyanska St, 2006 12,000 8,400
Amstor 3- , Stadionna St 2004 13,573 8,000
Amstor 41 Shevchenko blvd, 28,000 9,800
Amstor 4 Dobrovolskoho St 2006 12,000 8,400
Décor Donbas 4 Gen.Antonova St 2008 26,500 20,000
TSUM 34 Artem St 1970 12,000 6,300
Rose Park/ Auchan Donskoy
114th km of the Slovyansk-Mariupil way
2012 25,000 16,000
Druzhba 90 Kirov St 2007 40,000 24,000
Privokzalnyi 1 Pryvokzalna Sq 2012 12,000 9,600
MFK “Pushkinskyi” 1 Maryinska St 2012 30,900 3,100
TOTAL 369,062 207,570
Main active trade centers Supply
24
Supply in the retail market of Donetsk
Retail market overview Kiev and Ukraine,1st half of 2014
The map of the main existing and prospective trade centers in the city of Donetsk
TRADE CENTERS: 1) Donetsk city - Artem St.130 2) Continent- 51 Pervomayska St 3) Bilyi Lebid- Artem St.143 4) Zolote kiltse – 2 Komunariv Sq 5) Amstor - 3-D Stadionna St 6) TSUM - 34 Artem St 7) Yellow – Artem St 8) Green Plaza - 51 Artem St. 9) Décor Donbas – 4 Gen. Antonova St 10) Obzhora – 7B Tupoleva St 11) Druzhba – 90 Kirova St 12) Auchan Donskoy - 114th km of the
Slovyansk-Mariupil way 13) Amstor – 41D Shevchenko blvd, 14) Pryvokzalnyi - 1 Pryvokzalna Sq 15) Amstor - 10-B Zemlyanska St, 16) Obzhora - Street named after 230th infantry
division, 8 17) Pushkinskyi - 1 Maryinska St TRADE CENTERS UNDER
CONSTRUCTION: 1) Yuznye sklony – 51 Lenina Ave 2) Rose Park (2nd turn) - 114th km of the
Slovyansk-Mariupil way
30 25
Retail market overview Kiev and Ukraine,1st half of 2014
Overview of the retail market of Odesa
SM «CityCenter Kotovskyi»
26
Retail market overview Kiev and Ukraine,1st half of 2014
Supply
The market of quality trade spaces of Odesa is in the growth phase.
In the 1st half of 2014, SM “CityCenter Kotovskyi” (GLA = 29 570 sq.m.) was launched. SM "Yessa» (HUB, Zebra), “Atrium” (Muravey), “Kadorr”, “Ekvator” are announced to be launched by the end of 2014.
Some of the previously announced projects show the suspension of commercialization and carrying the date of launching for a more later date (“Retail Park Europort”, “Odesa City”, “Ippodrom”).
Totally for 2014-2016 the 14 new shopping and entertainment centers are announced to be launched.
Supply of trade real estate of Odesa
in 2004-2015P, GLA thous. sq.m.
Market supply of retail property of Odessa
Name Address Year GLA, m2
Shopping malls
Riviera Shopping City Fontanka St, Yuzhnaya motorway 2010 65,000 City Center 2 Marshal Zhukov Ave., 2012 55,000 Srednefontanskiy/ Platan-Plaza 4 Lane Semafornyy, 2005 30,000 Sady Pobedy 10-th of April sq. 2007 13,000 Citв CОntОr “Kotovskiy" 76 Krymska St, 2014 29,570
Trade centers
Ostrov 2 Novoshchepnoy ryad St., 2010 22,000 Novyy Privoz 25 Panteleymonivska 2006 15,750 Afina 3/4 Grecheskaya sq, 2004 19,528 Vuzovskiy 140 Lyustdorfsk road, 2004 15,000
Tairovskiy 9 Ac. Williams St, 2011 8,400 Aeroportovskiy 50 Gastello St 2002 7,000 Marshal 29 Academician Glushko Ave 2005 5,600 Panorama 1 Boris Derevyanko, St 2006 13,600 Avrora 125- Dnipropetrovsk road, 2004 7,712 Evropa 21 Deribasovska St 2005 7,993 Semya 93- Dnipropetrovsk motorway 2003 5,520 Aleksandrovskiy 88 Panteleymonivska St, 2010 4,275 TSUM 72 Pushkinska St 6,600 Suvorovskiy 46 Paustovskiy St 2012 20,000 Pyatyy element 4 Chernyakhovskiy, St 2011 4,800
Specialized trade centers
6 element (furniture) 6th km of Ovidiopol motorway 2009 15,000 MegaDom (furniture) 135 Tolbukhin St 07/13 11200 /18960 Epicenter (DIY) 7-th km of Ovidiopol road,1 2006 29,960 Epicenter (DIY) 99 Marshal Zhukov Ave 2008 18,000 Ekspostroy (DIY) 4 Marshal Zhukov Ave 2002 12,000 Metro (Cash&Carry) 101-M Marshal Zhukov Ave 2008 10,800 Metro (Cash&Carry) 29 AeroportIvskaya St 2005 14,400 Metro (Cash&Carry) 307 Mykolayiv road 2012 Fozzy (Cash&Carry) 83 Serednia St 2010 8,200 Nova Liniya (DIY) 8/2 Leningrad highway, 2007 18,592 Nova Liniya (DIY) Novomykolayiv road 3 km 2010 14,080
24 66 110 139 163 163 178
269 283 358 377
438
42
44 29
24 0 15
91 13
75 19
61
95
-200%
-100%
0%
100%
200%
300%
400%
500%
600%
0
100
200
300
400
500
600
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13 П П
В еде о эк плуатац ю GLA, ты .
GLA а ачало ода, ты .
И е е е, %
27
Retail market overview Kiev and Ukraine,1st half of 2014
The map of existing and prospective trade centers in the city of Odesa
SHOPPING MALLS: 1) Riviera Shopping City - Fontanka St, Yuzhnaya motorway 2) City Center - 2 Marshal Zhukov Ave., 3) Srednefontanskiy/ Platan-Plaza- 4 Lane Semafornyy, 4) Sady Pobedy- 10-th of April sq. TRADE CENTERS: 1) Ostrov - 2 Novoshchepnoy ryad St., 2) Novyy Privoz- 25 Panteleymonivska 3) Afina - 3/4 Grechesckaya sq 4) Vuzovskiy - 140 Lyustdorfsk road 5) Tairovskiy - 9 Ac. Williams St 6) Aeroportovskiy - 50 Gastello St 7) Marshal - 29 Academician Glushko Ave 8) Panorama - 1 Boris Derevyanko, St 9) Avrora - 125- Dnipropetrovsk road 10) Evropa - 21 Deribasovska St 11) Semya - 93- Dnipropetrovsk road 12) Aleksandrovskiy – 88 Panteleymonivska St 13) TSUM - 72 Pushkinska St 14) Suvorovskiy - 46 Paustovskiy St 15) Pyatyy element- 4 Chernyakhovskiy, St SPECIALIZED CENTERS: 1) 6 element (furniture)- 6th km of Ovidiopol motorway 2) MegaDom (furniture)) - 135 Tolbukhin St 3) Epicenter (DIY) - 7-th km of Ovidiopol road,1 4) Epicenter (DIY) - 99 Marshal Zhukov Ave 5) Ekspostroy (DIY) - 4 Marshal Zhukov Ave 6) Metro (Cash&Carry) - 101-M Marshal Zhukov Ave 7) Metro (Cash&Carry) - 29 AeroportIvskaya St 8) Metro (Cash&Carry) - 307 Mykolayiv road 9) Fozzy (Cash&Carry) - 83 Serednia St 10) Nova Liniya (DIY)- 8/2 Leningrad highway, 11) Nova Liniya (DIY)- Novomykolayiv road 3 km CENTERS UNDER CONSTRUCTION (DESIGNED): 1) SM HUB (“ГОbra") - 113-115 Dobrovolskoho Ave 2) SM “Atrium" (“Muravey") – 50 Bocharova St / Saharova St 3) SM “Kadorr" – 27 Yekateryninska St 4) Citв CОntОr “Kotovskyi" – 76 Krymska St 5) SM from company “Immauchan Ukraine" – Zhukov Ave/Glushko Ave 6) “Klevernyi" (Market, SM) – 12th km of highway Odesa-Kyiv 7) SM “OНОssa Mall” – Razumovska/ Balkovska St 8) SM “Ippodrom" - 3 Krasnova St 9) SM "Odessa City" from "Amstor" company – Gen.Petrov St 10) Retail Park Europort - Prylymanskyi vill, Odesa region
34 28
Retail market overview Kiev and Ukraine,1st half of 2014
Overview of the retail market in Lviv city
SM «Kings Cross Leopolis»
29
Retail market overview Kiev and Ukraine,1st half of 2014
20%
1%
1%
1%
2%
2%
3%
5%
7%
47%
9%
43%
12%
10%
13%
5%
4%
27%
8%
47%
Not applicable
Markets of the city
TC Magnus
TC Lviv
TC Shuvar
TC ВАМ-4
TC Arsen
TEC Pivdennyi
TC Skrynia
SM King Cross Leopolis
Purchases of clothing
and shoesThe best
Rating of trade centers in Lviv city by the number of purchases
and loyalty of the customers
Name Address Year GВA, sq.m.
GLA, sq.m.
«King Cross Leopolis»
30 Stryiska St 2010 105,000 52,700
«Magnus» 1 Shpytalna St 2003 5,000 4,500
«Lviv» (TSUM) 106 Kniahyni Olhy St 1988 23,600 15,560
«Tri slona» Kiltsova doroha 2012 18,000 13,500
«Sriblyastyi» 37 Patona St 2007 13,000 9,100
«ВАМ-5» 214 B.Khmelnytskoho St 2012 12,000 9,000
«Intercity-1» 67 Chornovola St 2008 12,000 6,300
«Intercity-2» 62-A Chervonoyi Kalyny Ave 2009 10,000 5,000
«Mark» 95 Kniahyni Olhy St 2007 10,000 7,000
«Skrynia» 179 Horodotska St 2006 8,300 5,810
«ВАМ-1» 100 Vyhovskoho St 2002 9,000 7,200
TOTAL 225 ,900 137 ,770
TOTS 15 Soborna Sq 2013 7 ,100 5,100
«Forum Lviv» Pid dubom St 2014/2015 69,000 36,000
«Leopolis Center» Kulparkivska St/ Naukova St suspended 96,000 47,500
TOTAL 172 ,00 88 ,600
Existing and prospective trade centers Retail market in Lviv city
38 30
Supply in the retail market of Lviv
Retail market overview Kiev and Ukraine,1st half of 2014
Overview of the retail market in Zaporizhzhya
SM «City Mall»
31
Retail market overview Kiev and Ukraine,1st half of 2014
20%
4%
4%
4%
6%
14%
16%
19%
17%
6%
6%
26%
11%
21%
16%
21%
Not applicable
TC Kosmos city/ ATB
SM Palmira Plaza
City markets (aggregate)
TC Intertrade/Silpo in TC
SM City Mall
TC Ukraine/TSUM/Silpo in TC
Network Amstor (aggregate)
Purchases of clothing and shoes
The best
No Name Address Year GLA, Sq.m.
1 Ukraine 147 Lenina Ave 2004 14,000
2 Palmira plaza 92 Lenina Ave 2005, 2007 7,300
3 Kosmos city 119 Kosmichna St 2006 12 ,900
4 City mall 1 Zaporizka St 2008, 2011 21,400
Total 55 ,600
1 «Avrora» Lenina Ave 83-85 2013 ~18,000
2 Port city
Nahnibida/ Novokuznetska St project
~75,000
3 «Apollo» Horihivske shosse project ~40,000
4 SM Hlisserna St project ~50,000
5 «Karavan»
Peremohy/ Pryberezhna St project
~70,000
6
SM Intrade (renovation)
53 Lenina St project
~10,500
7 SM Lenina St project ~40,000
Total 363,500
Rating of trade centers in Zaporizhzhya city by the number of
purchases and loyalty of the customers
Retail market in Zaporizhzhya city Existing and prospective trade centers in Zaporizhzhya
37 32
Supply in the retail market of Zaporizhzhya
Retail market overview Kiev and Ukraine,1st half of 2014
Overview of the retail market in Lutsk
SM «PortCity»
33
Retail market overview Kiev and Ukraine,1st half of 2014 36 34
Name Address Starting
date GBA GLA
“Port city" 1 Sukhomlynskoho St 2014 54000 26090 “Varshavskyi" 30 Konyakina St 2009 6570 4000
“Image" 89 Rovenska St 2002 5000 4000
“Karavan" Karpenka-Karoho St ~2008 2500 2125
“Yuvant" 35 Shevchenka St 2005 10000 6500
“Slon" 23 Kravchuka St 2004 5000 3200
“Grand Volyn" 42 Voli Ave 2012 7750 5000
“Lutsk (TSUM)" 1 Voli Ave 2012 11471 9750 “Buratino" 4 Vynnychenka St 2012 1815 1400 “Globus" 11 Yershova St 2003 10000 7000
"City Park" 49 Voli Ave 2012 672 454 EC "Adrenalin City" 1 Karbysheva St 2012 40 000 32000
“Hostynets" 11 Sobornosti Ave 2004 1700 1200
Supply The retail market in Lutsk in the first half of 2014 was
added by opening the biggest in the city SM “Port citв” (GLA = 26,090 sq.m.).
For the future (around 2015), a trade center at the intersection of Obyizdna and Rovenska Streets is announced to be launched with gross leasable area 15,000 sq.m..
Supply in the retail market of Lutsk city
Supply in the retail market of Lutsk
Retail market overview Kiev and Ukraine,1st half of 2014
Overview of the retail market in Simferopol city
SM «MegaNom»
35
Retail market overview Kiev and Ukraine,1st half of 2014
29%
6%
0%
2%
2%
5%
5%
10%
13%
29%
37%
3%
1%
4%
28%
8%
11%
10%
17%
31%
Not applicable
Other
TC "Bereg" (Kirova St)
TC 'Yuzh a Galereya Kyivska St …
City markets (aggegate)
TC "Ce tru " Sevastopolska…
рyper arket "Metro"…
TC 'FM' (Yasna St)
Purchasing of clothing
and shoesThe best
Rating of trade centers in Zaporizhzhya city by the number of
purchases and loyalty of the customers
Existing and prospective trade centers
in Simferopol city Retail market in Simferopol city
Name Address GBA,
sq.m.
GLA,
sq.m Year
Meganom 1st turn 8 Yevpatoriyske Shose 15,400 12,900 2012
FM 1,2 turn 37 Yasna St 33,000 23,100
2007-
2012
Centrum 1 turn 62 Sevastopolska St. 10,600 8,760 2007
City Center 8/3 Heroyiv Stalingradu 25,000 16,700 2008
Yuzhnaya galereya 1st
turn 189 Kyivska St 20,000 13,100 2009
TSUM 19 Kirova Ave. 5,000 4,000 1978
Berg 36 Kirova Ave 8,000 5,600 2008
Tochka 62 Sevastopolska St 10,000 7,000 2012
Total 127,000 91,160
39 36
Supply in the retail market of Simferopol
Retail market overview Kiev and Ukraine,1st half of 2014
Overview of the retail market in Chernihov
SM «Мега Це тр»
37
Retail market overview Kiev and Ukraine,1st half of 2014
16%
0%
1%
7%
8%
18%
18%
27%
9%
2%
15%
3%
47%
48%
6%
27%
Not applicable
TC "Polissya"
ATB
Central market
Niva market
TC "Royal"
TC "Megacenter"
Purchases of clothing
and shoes
The best
Rating of trade centers in Chernihiv city by the number of purchases and loyalty of the customers
Retail market in Chernihov city
# Name Address GВA, sq.m.
GLA, sq.m.
Year
1 SM «Mega Center» 49 Mira Ave 17,500 12,250 2005
2 SM «Royal» 1 Muzychna St. 13,000 9,100 2010
3 SM «Detskiy Mir» 30 Mira Ave. 3,000 2 ,00 1980s
4 SM «Polissya» 32 Mira Ave. 4,200 2,900 1990s
Total 37,700 26,390
1 SM «Vienna» 77th infantry division str., 1
58,600 45,190 2014
2 SM «Masany-2» Masany-2 district 60,000 42,000 project
3 SM in ZHTK Kyivska St 5,440 4,380 project
Total 124,040 91,570
Main active and prospective trade centers in Chernihiv city
40 38
Supply in the retail market of Chernigov
Retail market overview Kiev and Ukraine,1st half of 2014
Overview of the retail market in Kherson
SM «Fabrika»
39
Retail market overview Kiev and Ukraine,1st half of 2014
Main existing and prospective trade centers in Kherson city
Retail market in Kherson city
Name Address GBA, sq.m.
G, sq.m.
Year
SM Fabrika 1,2-3 turns.
18 Zalaerseg St 82,000 65,500 2012-2013
SM «Europort» 19 Mykolayivske shose
7,130 3 ,22 2012
SM «Admiral» 1 turn. 35- Ushakova Ave 5,000 4,000 2011
SM OSKAR (partial launch)
12 Suvorova St. 6,800 4,800 2012
Total by active SM 100,930 77,420
SM «Admiral» 2 turn. 35- Ushakova Ave 5,000 4,000 2013-2014
SM – reconstruction of “Ukrayina” cinОma 45 Ushakova Ave 10,268 7,200 2014
SM OSKAR (partial launch).
12 Suvorova St 45,300 29,200 2014
Total by announced projects SM 60,570 40,400
41 40
Supply in the retail market of Kherson
Retail market overview Kiev and Ukraine,1st half of 2014
Prospectives of ukrainian retail market
41
Retail market overview Kiev and Ukraine,1st half of 2014
Prospectives The consumer market in Ukraine is one of the largest by European standards: Ukraine ranked 10th in Europe by the volume of retail turnover of trade enterprises in 2013. Ukrainian retail turnover (RTO) is comparable with the Netherlands and Switzerland, more than RTO of Sweden, Belgium, Norway, Austria, Portugal. 2 times bigger than in Hungary and the Czech Republic, almost in 5 times more than Bulgarian RTO, in 4 times more than the Baltic countries all together (Lithuania, Latvia and Estonia); The constant growth of turnover in the dynamics; Despite the gradual reduction in the cost of rent - profitability of shopping centers in Ukraine remains one of the highest in Europe;
Increase of retail turnover in Ukraine in the dynamics of 2007-2013, mln UAH (1USD = 8 UAH)
Prospectives in the retail market in Ukraine
42
Retail turnover in European countries in 2013, mln. USD
318,725
449,308 442,793
529,883
674,723
804,331
884,204
41.0%
-1.4%
19.7%
27.3%
19.2%
9.9%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
2007 2008 2009 2010 2011 2012 2013
Ук а а, л .
П о т, %
4,375 4,636 5,318 5,848 6,313 6,524 8,214 8,603 9,180 10,100 10,419 12,979 14,248 19,229 19,657 20,923 22,818 24,667 36,726 46,307 46,821 49,894 51,136 55,604 60,082 72,497 73,390 76,531 80,142 89,268 91,907 105,224 113,942
163,946 252,682
479,284 500,559 503,043
565,157 691,725
Estonia
Macedonia
Moldova
Armenia
Albania
Cyprus
Georgia
Luxembourg
Bosnia and Herzegovina
Latvia
Lithuania
Slovenia
Croatia
Azerbaijan
Serbia
Bulgaria
Slovakia
Belarus
Ireland
Czech Republic
Hungary
Romania
Finland
Portugal
Denmark
Austria
Greece
Norway
Belgium
Sweden
Ukraine
Switzerland
The Netherlands
Poland
Spain
Italy
United Kingdom
France
Germany
Russia
Retail market overview Kiev and Ukraine,1st half of 2014
Prospectives in the retail market in Ukraine
43
Expenses for purchase in the total expenditure, % Prospectives Kyiv remains less saturated by shopping centers per 1,000 people compared to European cities: the capital of Ukraine still lags behind most of the capitals of the neighboring countries, both in absolute and relative terms; Small quantity represented in Ukraine international brands and retailers offer opportunities to open new stores; High level of expenses for shopping in the structure of expenditures (62.8%) is traditional for the Ukrainian citizens - Ukraine favors the development of retail trade.
Supply of retail space per 1,000 people
in some European cities
789 755 741
708 690
546
497
420 410
401
393
383
373
360 357
334 176
0
100
200
300
400
500
600
700
800
900
0
1
2
3
4
5
Za
gre
b
Wa
rsa
w
Pra
gu
e
Bra
tisl
av
a
Pa
ris
Bu
da
pe
st
St.
Pe
ters
bu
rg
So
fia
Be
rlin
Ista
nb
ul
Od
ess
a
Lon
do
n
Dn
ep
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sk
Mo
sco
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Kie
v
Ast
an
a
Min
sk
mln
m2
Supply of trade spaces (GLA), m2 m2 GLA per 1000 people
21.5% 22.4%
27.3% 28.0%
30.0% 30.3% 30.7% 30.8% 31.3% 31.5% 32.0% 33.4% 34.2% 34.7% 34.8% 35.2% 35.6% 37.1% 37.2% 38.4% 38.5%
40.1% 40.4% 40.4% 40.5% 41.1% 42.2%
45.4% 46.6% 46.9%
49.6% 52.1% 53.1%
55.8% 57.4% 58.1% 58.5% 59.2%
61.0% 62.2% 62.8%
65.4% 66.2%
68.4% 70.7% 73.6%
MonacoLiechtenstein
GermanySwitzerland
BelgiumUnited Kingdom
SpainThe Netherlands
IcelandAustriaFrance
SwedenEstoniaAndorraFinlandIreland
LithuaniaDenmark
NorwayItaly
PortugalMalta
CroatiaCyprusGreece
SlovakiaRomania
LuxembourgCzech Republic
SloveniaMontenegro
PolandLatvia
HungaryBosnia and Herzegovina
MacedoniaSerbia
AlbaniaBulgariaArmeniaUkraine
AzerbaijanRussia
MoldovaGeorgiaBelarus
Retail market overview Kiev and Ukraine,1st half of 2014
Contact information
Vadim Neposedov President of the Company [email protected]
Vitaliy Boyko Managing Partner [email protected] Loktionova Evgeniya Director of the Company [email protected]
Viktor Oborskiy Strategic Consulting Department Manager [email protected]
«Ukrainian Trade Guild» is the biggest national consulting company in real estate marketing. UTG today is 35 highly-qualified specialists and more than 500 clients. Participation in 450 business-projects and carrying out more than 700 market researched allows us to be a reliable, responsible and competent partner.
Working with real estate of any size and type at the different project stages, we guarantee high professional level and individual approach to set tasks.
Given presentation is a generalized publication. UTG is not legally responsible for information, analytics and forecasts given here in terms of possible losses of third parties due to usage of the report results.
Any publishing of information materials from given report, complete or partial, is possible only with indication of the company as the source of data.
THANK YOU FOR ATTENTION
Contact Information:
Ukrainian Trade Guild Mechnikova St., 2-А
(«Parus» business-centre) Kyiv 01601, Ukraine
T: (+380 44) 537 23 64
www.utgcompany.com
44