Changes in the Retail Market


Svetlana Kuzmina, Director of the Assets Management Department at Avica Property Investors, spoke at the PROEstate international investment forum.

Yesterday, as a part of the PROEstate forum, a panel discussion titled “Retail: Managing the Change” was held, bringing up such issues as the impact of the new economic situation on to the expansion of international retail chains, attraction of major retailers into projects, as well as development strategies of Russian retail chains, etc.

Svetlana Kuzmina, head of the the Assets Management Department at Avica Property Investors, took part in the round-table session. Avica Property Investors is a leading player management of premium in retail assets in the Russian capital. The company manages the assets of the Romanov Property Holdings Fund, which includes the Vremena Goda shopping center on Kutuzovsky prospekt and Dream House in Barvikha, a Moscow suburb.


Svetlana Kuzmina noted that international retail chains always thoroughly scrutinize a property before setting up shop there. They primarily analyze such parameters as its location, the list of the mall’s tenants and the management quality. “For now, the recent economic changes have not impacted the expansion of international retailers, and all of the agreements to open new outlets are being observed,” she said. “In 2014, Sandro, Maje, Santoni, and TWG boutiques have opened their doors in our malls, and we are expecting Agnona, Fogal, Pepita, and Herve Leger to open in the near future. Some of those brands are entering the Moscow market for the first time, and others are expanding their chains as stipulated in their development strategies.”

Today, the issue of attracting new tenants to the malls is increasingly important. “We are offering tailored seasonal payment schedules to our potential tenants, as well as mall-specific outlet opening packages, and a fixed minimal rent rate plus a percentage rate of the turnover,” the expert concluded.


The luxury-class shopping malls Dream House and Vremena Goda are part of the portfolio of Romanov Property Holdings Fund (50% owned by RD Group). AVICA Property Investors is responsible for the management of the investment fund’s assets. The total value of RPHF’s asset at the end of 2013 exceeded $1 billion.