2009 - CRE

89
| North–West |
| : South |
| Listings |
# 8(112) /15.03.2009-15.05.2009
The­International­Commercial­Center,­
Crystal,­is­due­to­open­in­the­first­quarter­
of­2009­in­Krasnodar.­This­eleven-story,­
30,462-sq­m­premium-class­mixed-use­
property­will­house­luxury­shopping­arcades­
and­an­A-class­office­center­with­a­separate­
entrance.­The­project­is­developed­by­CJSC­
ICC­Crystal;­the­master­planner­is­Kuban­
Universal­Project.­The­three­lower­floors­will­
be­set­aside­for­the­retail­section,­the­fourth­
floor­will­hold­a­restaurant­area­and­floors­
5-11­will­be­assigned­to­offices.
In­the­words­of­Alexei­Emelyanc-
hikov,­development­director­at­ICC­
Crystal,­the­property­has­been­80%­leased.­
The­anchor­tenants­include­the­Globus­
Gourmet­delicatessen­store­and­ILE­DE­
BEAUTE­perfumery­salon.­The­tenants­
of­the­retail­area­are­DECOR­BURGUA,­
GREENWICH,­Barbara­Bui,­IGOR­CHAPURIN,­
ETAZHI,­Celyn­B,­Elena­Miro,­Angel­Devil,­
DAMAT&TWEEN&ADV,­Societa,­DOREAN,­
EXPENSIVE,­MARLBORO­CLASSICS­and­
MILANO.­The­offices­are­leased­by­the­public­
corporation­MRSK­Yuga­and­the­attorney­
bureau,­Yug.­Rates­at­ICC­Crystal­vary­
between­$1,500­and­$600­per­sq­m­per­year.­
The­property­has­already­been­turned­over­
for­operation.­At­present­the­finishing­works­
are­being­completed­in­the­tenants’­stores.
The­level­of­investment­in­the­project­
is­not­disclosed.­Emelyanchikov­told­
CRE­that­Crystal­is­financed­by­CJSC­ICC­
Crystal­and­that­it­uses­both­its­own­and­
borrowed­funds.­According­to­the­project's­
participants,­construction­on­a­premium-
class­mixed-use­property­was­commissioned­
based­on­the­lack­of­such­a­high-end­center­
in­Krasnodar­and­the­growing­interest­in­
such­a­property­on­the­part­of­tenants.­
Project­
A­cinema­­
network­to­appear­
in­Grozny
Chechen­authorities­plan­to­build­a­
network­of­modern­movie­theaters­
in­Grozny.­All­movie­theaters­were­
destroyed­in­the­course­of­warfare­in­
Chechnya.­With­the­assistance­of­inves-
tors­the­city­administration­intends­to­
accommodate­one­multiplex­in­a­trade­
center­in­a­densely­populated­area­of­
Grozny.­Because­bulky­housing­con-
struction­is­planned­in­the­republic,­
the­need­for­recreational­and­leisure­
facilities­will­also­be­rising­and­so­it­is­
but­logical­to­envisage­construction­on­
a­cinema­network.­The­project­is­slated­
for­delivery­by­2010­within­the­program­
of­socio-economic­development­over­the­
period­of­2007-10.
In­the­words­of­Kiril­Ivanov,­aide­
of­CEO­Cinema­Park,­movie­theaters­
will­be­in­high­demand­in­the­Chechen­
Republic.­“Over­the­last­few­years­the­
residents­of­the­republic­have­survived­
a­time­of­trouble­and­a­regular­visit­to­
the­cinema,­which­is­a­normal­pastime­
for­Muscovites,­will­be­something­new­to­
them,”­says­Ivanov.
However,­Moscow-based­operators­
are­not­in­a­rush­to­launch­an­expansion­
in­the­Chechen­Republic.­“We­do­not­
plan­to­open­cinemas­in­Chechnya­–­
above­all,­because­of­security­con-
cerns,”­says­Ivanov.­“Although­combat­
operations­ended­some­time­ago­and­
the­authorities­are­restoring­the­ruined­
infrastructure,­this­is­not­a­very­secure­
place­for­opening­cinema­complexes.­For­
this­reason­not­a­single­Moscow-based­
operator­will­enter­the­Chechen­market­
in­the­foreseeable­future.”­
Azov-City­­
forgotten
The­monitoring­of­the­gaming­area­
Azov-City­conducted­in­February­made­
experts­conclude­that­the­Rostov­
regional­authorities­would­not­be­
able­to­commission­the­project­on­
time.­“We­monitored­Azov-City,”­said­
Dmitry­Slobodkin,­vice-chairman­of­the­
Tourism,­Hospitality­and­Entertainments­
Commission­at­the­Russian­Union­of­
Industrialists­and­Entrepreneurs.­“As­of­
February­we­came­to­the­following­con-
clusions:­now­the­future­gaming­area­is­
a­drained­greenfield­dotted­with­poles­
with­tight­cable­on­top­of­them.­It’s­
hard­to­imagine­how­this­project­can­be­
commissioned­by­July­1.”
Since­January­18­no­tenders­for­the­
right­to­invest­in­the­parcels­of­the­gam-
ing­area­have­been­held­and­they­are­
not­planned­for­months­to­come.­In­the­
opinion­of­market­participants,­­
the­development­of­Azov-City­has­
slowed­down­in­the­wake­of­the­cri-
sis.­It’s­getting­increasingly­difficult­
to­involve­investors­in­the­projects.­
During­the­time­that­has­passed­since­
the­last­auction­sale­no­volunteers,­
willing­to­invest­in­the­risky­project,­
have­appeared.­“A­clear­project­con-
cept­is­needed­to­attract­financing.­
Meanwhile­everything­is­uncertain­in­
Azov-City.­The­investor­does­not­even­
know­in­what­conditions­he­may­land­in­
case­he­invests­money­in­this­project,”­
Slobodkin­says.
Market­participants­agree­that­the­
situation­is­extremely­complicated­in­
today’s­Azov-City.­Because­public­offi-
cials­are­not­particularly­interested­in­
this­project­they­do­not­create­essential­
conditions­for­the­attraction­of­private­
investments.­In­one­expert's­opinion,­for­
the­gaming­area­project­to­be­realized­
the­Rostov­regional­authorities­need­to­
review­the­project­concept­and­develop­
an­elaborate­functional­plan­of­the­area­
in­order­to­present­exhaustive­informa-
tion­to­potential­investors.­However,­in­
the­opinion­of­Dmitry­Slobodkin,­even­
these­measures­may­not­save­Azov-City­
from­oblivion.­“This­project­is­nothing­
more­than­a­phantasmagoria.­It­is­so­
illogical­in­terms­of­its­structure­and­so­
impertinent­on­the­chosen­territory­that­
its­future­is­rather­obscure.”­
Government­news­
Olympic­savings
Dmitry­Kozak,­a­Russian­deputy­prime­min-
ister­said­the­budgetary­funds­planned­for­
allocation­to­Olympstroy­in­2009­won’t­be­
transferred­to­the­corporation’s­account.­
The­government­will­distribute­about­
16­billion­rubles­between­other­“domes-
tic­executors”,­while­the­remaining­33­
billion­will­be­put­in­the­federal­budget­
and­redistributed­among­other­sectors­
and­industries­in­need­of­funds­dur-
ing­the­crisis.­However,­in­spite­of­the­
budget­sequestration,­Olympstroy­will­
continue­the­realization­of­its­program­
at­the­expense­of­the­vested­remainder­
to­the­tune­of­12­billion­rubles­(as­of­
the­turn­of­the­year).­The­budget­of­
Olympstroy,­a­state-run­corporation,­
is­pooled­from­federal­allocations­and­
interest­on­deposits­and­will­amount­to­
73­billion­rubles­this­year.The­authori-
ties­plan­to­save­22­more­billion­from­
the­Olympic­budget.­By­March­1­the­gov-
ernment­will­propose­the­construction­
of­the­Figure-Skating­Palace,­the­Ice-
Hockey­Arena,­the­Skating­Center­and­
the­Small­Ice­Arena­to­private­investors.­
All­these­properties­will­be­of­com-
mercial­interest­even­after­the­Olympic­
Games­are­over­and­the­authorities­plan­
to­use­this­as­an­incentive­for­private­
investors.­Vladimir­Putin­recently­admit-
ted­that­only­big­business­may­be­able­to­
ensure­the­Olympiad­is­conducted­at­the­
due­level.­According­to­the­prime­min-
ister,­200­properties,­having­high­com-
mercial­attractiveness,­in­his­estimation,­
are­left­without­investors.­Therefore­
the­government­has­firm­intentions­to­
attract­private­investors.
However­this­will­not­be­so­easy­in­an­
economically­depressed­environment.­
In­the­words­of­Sergey­Nikitin,­director­
of­Penny­Lane­Sochi,­the­authorities­
may­use­two­main­ways­to­attract­private­
financing.­“The­government­may­offi-
cially­ask­well-known­businessmen­to­get­
involved­in­this­or­that­project­and­they­
will­hardly­have­the­guts­to­turn­down­
this­proposal.­Let’s­remember­Mikhail­
Prokhorov­who­helmed­the­Russian­
Biathlon­Association.­The­second­way­is­
to­lure­big­business­with­certain­privi-
leges:­the­subsequent­handover­of­the­
properties­to­private­businessmen­for­
asset­management­or­as­freehold.”­Yet,­
according­to­Nikitin,­investors­are­not­
currently­interested­in­the­Olympics.­The­
world­financial­crisis­makes­them­solve­
more­important­problems­and­few­are­
willing­to­invest­in­the­Sochi­projects.­
NEWS
ICC Crystal to open in Krasnodar