IMG starts construction on Oktyabrsky Retail Park
Investment Management Group (IMG), a Moscow-based private equity real estate fund manager, has begun construction on its investee project, Oktyabrsky Retail Park, located in Tver, Russia.
The project is being developed in partnership with Norman Asset Management (NAM), which is acting as developer and co-investor for the project.
The retail project, at approximately 65,500 square meters, will be the largest modern shopping complex of its class to be built in Tver, a city 134 km northwest of Moscow. The retail park is located alongside the main road connecting Tver to the M-10 Moscow-St. Petersburg Federal Highway and will consist of two “big box” anchors: a hypermarket operated by Globus, a German retailer, and a DIY store operated by French group Leroy Merlin, which are also co-investors in the project. The two anchors will be connected by a multi-tenant retail gallery, developed by NAM. The project’s easy accessibility from Tver and from the Moscow Region, strong anchors and good tenant mix are expected to make it a major retail destination for the over 400,000 people who live within its catchment area.
The investment by Russia Development Fund (RDF), managed by IMG, in the project is directed at the development of its retail gallery component, which will have a GBA of approximately 25,600 square meters. RDF invested in November 2011, alongside NAM. The construction permit for the project was successfully received in August 2012 and the gallery is anticipated to open in the second half of 2013.
Maksim Kunin (pictured), managing partner at IMG, says: “The project is indicative of the opportunities that exist for retail development in major Russian regional cities, such as Tver. As the first modern retail project of this scale to be built in the city, where quality retail stock is substantially below Moscow levels, the park will capture significant untapped demand with virtually no competition. We anticipate that this will generate impressive returns for IMG’s RDF and its investors.”
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