Norman Asset Management acquired a 15.7 hectare land plot for construction of a retail center with a total area of 50,000 sq. m. in Zhukovsky, Moscow Region. The grand opening of the center is planned for 4th quarter 2014. Among the anchors is a hypermarket of 12,000 sq. m. and a 12,000 sqm DIY, as well as a retail gallery with leading international and Russian brands. Currently, southeast Moscow does not have a project of this scale and is not expected to have significant competition in the near term. The project catchment area covers the Zhukovsky, Ramenskoye and other neighboring districts of the Moscow Region.
Andrew Kazanli, Chief Investment Officer, Norman Asset Management, commented: “We are strong believers in the Russian retail story and the project in Zhukovsky demonstrates the compelling opportunities in this sector - generally low supply of modern retail space, ambitious expansion plans of international retailers, and strong retail turnover. Our retail-center format, which is characterized by big-box anchors and effective layouts, should benefit from these factors and provide a platform for long-term rental growth. As such, we are actively looking for new sites to develop both in the Moscow region and strong regional cities.”
Cushman & Wakefield advised the transaction.