Flagship Zoo Hypermarket from Czech Republic Dino Zoo Joins Salaris
The new hypermarket will occupy 1,500 sq m on the first floor of Salaris shopping centre in Moscow and will join other anchor tenants, like Globus food-hypermarket, Pandapark entertainment park, Raketa fitness, new cinema Cinema Park, and LPP Group stores: Reserved, Cropp, House, Mohito, Sinsay.
CBRE represented the landlord of this mixed-use complex in this deal.
The owner of this brand is Placek Group that work for over 30 years in 210 stores in 5 countries (Czech Republic, Slovenia, Slovakia, Latvia and Poland).
The operator will offer its customers the widest products range among all the pet stores present in Russia, including its own brands. A grooming salon for dogs and cats will be opened in the store. Also lectures and seminars will be held for pet owners in the store.
Olga Korolevskaya, Consultant, Moscow Retail Department, CBRE, said: "We are pleased that Dino Zoo by Placek Group has joined "Salaris" with its large-scale flagship store. We are confident that thanks to the implementation of an interactive zone and a unique line of products for animals, presented only in Dino Zoo hypermarkets, this shop will attract its audience and will become a destination point for the entire southwestern district and New Moscow”.
Russian real estate investment market with a total of $4.9 bln in 2017 has recorded a 3-year maximum with a 9% growth Y-O-Y. To compare, 2016 investment volume totaled $4.6 bln, 2015 - $3.3 bln.
Due to a number of large transactions closed in 2017 retail segment is responsible for a prevailing 32% share in the total investment volume, first time since 2013. Retail segment has experienced the largest in 2017, as well as one of the largest in Russian market transaction on the purchase of Immofinanz shopping centres portfolio. Office real estate segment was second in terms of investment share with 29% in the total investment volume. Industrial and hotel segments were responsible for 10% and 6% respectively.
The volume of overseas investments has reached $785 million in 2017 which is 16% in the total investment volume. Foreign investments has recorded a 4.4 times volume growth and 12 percentage points increase compared to the 2016 historically the lowest result in terms of foreign investors activity.
New construction grew 4 times compared to its Q2 value and amounted to 278,000 sq m. More than 80% of new space was leased before commissioning. 62% of new supply represents built-to-suit buildings.
161,000 sq m of warehouse space was taken-up in Q3 2017, which is 2.9 times higher compared to Q2. In Q1-Q3 2017 business activity of retailers continued to be a key driver for demand growth. FMCG & Food prevailed in take-up structure by goods type.
Total vacant space decreased to 450,000 sq m, accounting for only 7.1% of total stock.
Weighted average gross rental rate for A class warehouse reached 5,100 RUB/sq m/year exceeding its 2016 value by 4%.
In Q3 2017, 74,600 sq m were commissioned on the Moscow office market. This volume is the largest quarterly increase since the beginning of the year, however it is 9% lower than the value was in the same period of 2016.
The low new supply volume contributes to the continuing overall vacancy rate reduction. In Q3 2017 this indicator decreased by 0.8 ppts from 15.4% at the end of H1 2017 to 14.6%.
In Q3 2017, take-up is amounted to 255,000 sq m, which is 11% above the value in Q3 2016 and 21% higher than the volume in Q3 2015.
Ranges of asking rental rates remained stable in Q3 2017, but vacancy rate decrease and gradual equalization of the supply and demand balance in the Moscow office market will begin to influence the level of rates that may increase by 3-5% by the end of the year.
In Q1-Q3 2017 real estate investment volume amounted to $ 2.5 billion 35% of which accounted for Q3 2017. Thus, this indicator decreased by 27% compared to Q1-Q3 2016.
Foreign investors activity is increasing on the Russian market. In Q1-Q3 2017, the volume of investment transactions involving foreign capital increased 4.8 times compared to the same period of last year and leveled at $562 million that is 24% in the structure of investments, against 3.4% in January-September 2016.
Investment activity beyond the Moscow region was formed primarily by investment acquisition in St. Petersburg real estate market. Despite the much lower investment volumes compared to the Moscow region, in Q1-Q3 2017 the share of St. Petersburg and the Leningrad Region in investments structure increased up to 24% compared to 10% in the same period of 2016.
Capitalization rates in all segments of commercial real estate have adjusted compared to the beginning of 2017. The compression occurred due to Central Bank key rate reduction and real estate rental flows stabilization.