Brief review of retail real estate market in Moscow

Transcription

1 Brief review of retail real estate market in Moscow Q

2 Retail real estate market in Moscow Rosstat forecasts that the retail trade turnover will amount to billion rub. in 2013, and it may increase up to billion rub. in. Average market share of realized products, sold via online-shopping, amounted to 11% in Moscow in Q1 of Moscow retail property market was stable during Q1. Retail centers were not opened, rental rates remained the same. Among the major events happened at the beginning of the year, there is the purchase of REC Metropolis. It has been bought by Morgan Stanley Real Estate Investing (MSREI) for $1,2 billion that considers to be the largest deal completed during the whole history of the commercial real estate market. Table 1. Main indicators of retail real estate market in Moscow following the results of Q1, 2013 Source: GVA Sawyer, Rosstat Main indicators Q1, 2013 Another period Retail trade turnover, million rub (January 102, 1% of by January /February 2013) of 2012 Volume of supply for quality retail centers following the results / / of the period, gross area / GLA2, thous. sq m (end of 2012) Total area of RC opened in Q1 of 2013, gross area / GLA, sq m 0 131/59,6 (Q1 of 2012) Total area of retail premises announced to be commissioned in 486/ 305 Q2-4 of 2013, total area / GLA, thous. sq m Vacancy rate, % 1,5% 3,5% (Q1 of 2012) 1 2

3 Supply According to the results of Q total supply for retail (leasable) premises in quality RC amounted to thous. sq m. Availability of quality retail premises amounted to about 383 sq m (GLA) for residents. Quality retail centers were not opened during Q Chart 1. Dynamics in volume of quality supply in , GLA, thous. sq m Source: GVA Sawyer Developers have announced that about 486 thous. sq m (GBA) / 305 thous. sq m (GLA) of retail premises must be commissioned in retail centers in 2013 (see Table 2). However, developers plan to commission more than 800 thous. sq m of retail premises.. Table 2. Major projects of RC in Moscow, Source: GVA Sawyer Name of RC Gross/ leasable area, sq m REC GoodZone / «RIO», Leninskiy, / «Vesna» / Rc «Raykin Plaza» / RC «Sportex» / Fashion House / Name of RC Gross/ leasable area, sq m Opening Opening Outlet Village Vnukovo, / phase «Moskvorech`e» / RC «Alfavit» (Severnoye / Butovo) 2013 RC «Akvarel Yuzhnaya» / 7 500* 2013 RC «Praga» / REC «Aviapark» / Vegas Crocus City / Columbus / River Mall / REC «Butovo Mall» / REC «Мozaika» / REC «Reutov Park» / «Detsky Mir» / (reconstruction) RC «Vodniy» / RC on Varshavskoye / Highway 148 Outlet Village Vnukovo, n/a / phase 2 Specialized retail centre of goods for home Home / n/a Store Vegas Kuntsevo / Main tendencies of 2013 Market decentralization remains. Almost all new facilities are being built out of the Third Ring Road (excluding REC River Mall and reconstruction project Detsky Mir ). 380 thous. sq m of retail premises (GLA) are being constructed near MKAD, they are Vegas Crocus City ( / sq m), Vegas Kuntsevo ( / sq m), REC «Butovo Mall» ( / sq m), RC «Vesna» (70 720/ sq m), REC «Reutov Park» ( / sq m). More 2 The outlet has been constructed. Tenants are conducting repair works inside of the outlet. It is still closed for visitors. 3

4 over, 53 thous. sq m of retail premises (GLA) are expected to be commissioned in outlet centers over next two years. Developers` activity continues to increase. REC on Vernadsky Prospekt ( sq m of GBA), REC located on the intersection of Khoroshevskogo Highway and 4 th Magistralnaya Street ( sq m of GBA / of GLA), MFC Kuntsevo Plaza (total area of the project is sq m) at the Demand New players on the market: Group of companies Obuv Rossii opened its first new format store Vestfalika adapted for retail centers (120 sq m) in Moscow. During this year the company plans to open more than 60 stores all over Russia. In 2013 theme park for kids Masterslavl must be opened in MFC Evolution Tower in MIBC Moscow City. Next year Kidburg must appear (REC Detsky Mir on Lubyanka Street), then the company plans to open three parks in Moscow until Besides, kids` park Kidzania must be opened in REC Vegas Crocus City in. place of Ramstor were announced to be constructed in Q Besides, ENKA intends to renovate completely phase 2 of RC Viva Butovo. In Q vacancy rate amounted to 1,5% at average on the market. During the year vacancy rate will remain at the level of about 1-1,5%, but still differ a lot depending on quality of RC. Chain stores for future moms InterPol ( Interesting condition ), developed by Kenguru Company, leaves the market. Among the major investment purchases in Q1 2013, we can single out: Morgan Stanley has purchased REC Metropolis (GBA sq m) from Capital Partners. The transaction is evaluated in $1,2 billion. Victor Kharitonin (the shareholder of Farmstandart) plans to purchase REC Torgoviy kvartal ( sq m), located in Domodedovo Airport, from Torgoviy Kvartal Company. The transaction charge may amount to $135 million. 4

5 Financial terms Rental rates didn`t change over Q This year rental rates may increase by 10-12% in quality facilities with a good concept. Table 3. Range of rental rates for operators of retail centers in Moscow, Q Source: GVA Sawyer Formats of retail GLA, sq m Rental rates, operators $ per sq m per year, triple net Grocery hypermarket Hypermarket DIY Grocery supermarket Supermarket/hyperm arket of electronics and home appliances Clothing store Clothing/shoes Cinema halls Entertainment centre Operational costs, $ per sq m

6 Аналитический документ по исследованию рынка недвижимости GVA Worldwide Contacts of GVA Sawyer Australia Austria China Cyprus Denmark Estonia Finland Germany Great Britain Greece Hungary Hong Kong (PRC) Ireland Italy Lithuania Netherlands New Zealand Poland Russia Sweden Switzerland Head Office (Moscow) Bernikovskaya Embankment House , Moscow, Russia Nikoloyamskaya St., 13, str.17 Т: +7 (495) Ф: +7 (495) Office in St.-Petersburg BC Mir Efimova St., 4а, office St.-Petersburg, Russia Т: +7 (812) Representative office in Krasnoyarsk Diktatury Proletariata St., 32 office 4-4, Krasnoyarsk, Russia Т: + 7 (391) info@gvasawyer.com Representative office in Krasnodar Zipovskaya St. 5, building 6, office 209 Т: +7 (495) info@gvasawyer.com Подготовлено GVA Sawyer