In the Central children’s store on Lubyanka
The best not only for children
Central children’s store (CCS) at the Lubyanka, which became the flagship project of the company “gals-development” (96,44% of shares belong to VTB group), a large-scale reconceptualization. About it RBC was told by the consulting company Cushman & Wakefield to oversee the implementation of the new strategy and brokerage of the project. A contract for the provision of services, C&W signed with A&NN Retail (part of the investment group A&NN billionaire Alexander Mamut in July, said in a joint message of the companies. It also States that before C&W the task of “revising the functional zoning of the project, strengthening and additions of certain categories of goods and services, creating a strong offer for a family audience.”
“Our goal is to make the Central children’s store the center of gravity, which will be interesting and useful to spend time and children and modern parents. For example, we plan to open more cafes and restaurants will strengthen the offer in the sports category, will increase the number of electronics shops and we will develop the segment of educational entertainment. Another priority is the attraction of the flagship concepts of the well-known children’s brands” — are, in the words of the General Manager tsdm Peter Partma.
A request to RBC in a press-service VTB redirected to the group A&NN. To review in the group at the time of writing, failed.
“One major change will be the appearance in the store not only children but also the family range,” says partner and head of Department of trading real estate Cushman & Wakefield Ekaterina Zemskaya. However, changing a large number of tenants are not supposed to, promise to Cushman & Wakefield. Means the optimization of tenant mix (the list of tenants. — RBC), says a company representative. — For example, changing zoning, some tenants will be moved to a more relevant area or will be revised the occupied area”. Furthermore, the concept would imply improvement suggestions on all floors, each of which is planned to devote a separate age category. In tsdm nine floors, including two underground. Tenants occupy seven of them.
The main problem with CCS in the approach that the owner has chosen to surrender space to rent, explains head of shopping centres at Knight Frank Eugene Akberdieva: “After the reconstruction has turned a conventional shopping Mall without a single concept, segmentation and zoning”. The downside, in her opinion, was too high-price segment present retailers. Another problem, the expert believes that shopping center there is the only children’s range. “When he came to the same H&M, you will not be able to buy anything for myself because this is H&M kids,” notes Akberdieva. The new strategy is called upon to correct earlier mistakes. “Ideally, of tsdm have to do a Department store for example “Color” or the Central London store Hamley’s”, — the expert believes.
“It is logical that the management company CCS seeks to strengthen the concept of lifestyle in the Mall, there are places where parents are interested to spend more time. That is why it is worth to expand the restaurant functions as well as to bet on an increase in the share of retail segments attractive for the parent audience,” adds partner, head of property management at Colliers International Anna nikandrova.
CCS is not the only Moscow shopping center, badly in need of re-conception. According to various estimates, urgent changes require 16% (Knight Frank) to three (Colliers International) opened in Moscow of objects. However, the majority of them were built prior to 2007, and EBM has opened just half a year ago — March 31, 2015.
Reconstruction lasted almost seven years, from July 1, 2008. In the Wake of the financial crisis that began in the same year, “gals-development” moved for the debts of Sistema Vladimir Yevtushenkov to VTB. Before that it was planned that after the reconstruction the anchor tenant of the shopping center will be the network “Children’s world” also owned by “System”. In November 2012, the lease agreement, however, was signed with the British network Hamley’s exclusive contract for the development of which in Russia in 2011 entered the company Ideas4Retail, created in the same year Alexander Mamut and entrepreneur Yevgeny Butman. Mamut via the investment company A&NN owns 40% of Ideas4Retail, pointed out previously, “Kommersant”.
The veterans “Children’s world” sent an open letter to Vladimir Putin, in which he protested against the English brand in the store on Lubyanka square. Valentina Matvienko, who at the time the post of speaker of the Federation Council, has instructed the Minister of industry and trade Denis Manturov to prepare a letter to the owner of “gals-development” state Bank VTB, to back the brand” (“Children’s world”). However, the anchor tenant tsdm left Hamley’s.
In 2012, representatives of the architectural community drew attention to the incorrect, in their opinion, the work of reconstruction. They demanded to suspend all work, which could be lost unique elements of interior decoration of buildings and destroyed the historic atrium of the store. In turn, the press service of the “gals-development” drew attention to the fact that “the subject of protection includes only external walls, we are ready to restore particularly valuable interiors”.
Children’s store on Lubyanka was opened after six years of reconstruction
On Tuesday in Moscow has opened Europe’s largest Department store of goods for children “Central children’s store on Lubyanka square in 73 thousand sq m. Reconstruction of a historic building Dating…
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Changes at the start
Before the renovation the area of CCS was 54.5 thousand sq m, of which trade — 21 thousand square meters After the reconstruction of the store on Lubyanka received 73 thousand sq m, of which the tenants went to 34.6 thousand sq. m. Investment in reconstruction is estimated at 8 billion rubles. Thus, the cost of construction amounted to almost 110 thousand rubles. per 1 sq. m. the cost of new construction of similar objects without considering the finish in the pre-crisis prices would be about 82 thousand rubles. per 1 sq. m., draws the attention of the Director of retail Department, CBRE in the Moscow region Marina Malakhatko.
Earlier, Knight Frank (one of the brokers shopping centre) estimated that rents in the CCS on premises with an area of 50-120 sq. m starts from 100 thousand rbl. for 1 sq. m per year, whereas space from 300 sq m to 3 sq m shall be at a price of 60-70 thousand rubles. per 1 sq. m a year. Just at the Mall today, about 22.8 thousand sq m leased major tenants (Hamley’s, “Kidburg”, “Formula Kino”, “Dinopark”, “Adamas Kids”, etc.), to information on the website of the Central children’s store. Thus, the annual income from the lease rent they may be about 1.5 billion rubles. the Remaining area (about 11.8 thousand square meters) can generate at least 1.2 billion rubles. Based on these calculations, the total revenue of the shopping center in a year, excluding operating and other expenses — about 2.7 billion rubles.
Shortly after the inauguration of the renovated CCS it became known that Alexander Mamut began to negotiate with the head of VTB Andrey Kostin about to take over the store in the office (at that time the object remained under the control of “gals-Development”). Even then, it was assumed that the concept of a shopping centre on Lubyanka can be amended. “One of the options was to attract to the project Strelka Institute and experts from the investment of the company A&NN prepared presentations [to do] on changes in the CCS,” said a friend of Mamut. Institute for media, architecture and design “Strelka”, as well as investment company A&NN, belongs to Mamut. Subsequently, however, the “Arrow” was not involved in the project.
At the end of January 2016 VTB group gave the Department store management in retailing unit of investment group A&NN. The contract was for five years, his other conditions were not disclosed. VTB reported that the team Mamut will create a new concept for the CCS. “Our challenge is not only to revive the CCS as the center of attraction of children and adults from all over the country, but also to create a new symbol, the pride of Moscow, Russia, known worldwide” — was quoted in the release, Alexander Mamut.