A long-term financing agreement for US $218 million (approx. €170 million) has been signed with the Russian Sberbank to finance the construction of Zelenopark project, a retail center of approximately 100,000 m² GLA, developed in partnership with PGP Development in Zelenograd, Moscow region.
The project’s size, favorable location next to the existing and new Moscow-St. Petersburg highways, and tenant composition will make it a ‘destination’ for shoppers. IMG invested in the project through its Russia Development Fund in 2011, alongside PGP Development.
Another IMG’s investee project, Oktyabrsky Shopping Center, located in Tver, Russia, has also secured construction financing from Sberbank for US $28.7 million (approx. €22.3 million). The retail project, at approximately 65,500 m², is being developed in partnership with Norman Asset Management, which is acting as developer and co-investor for the project.
It will be the largest modern shopping complex of its class to be built in Tver, a city 134 km northwest of Moscow and will consist of two big-box anchors and co-investors: a hypermarket operated by Globus, a German retailer, and a DIY store, which is already trading, operated by French group Leroy Merlin. The two anchors will be connected by a multi-tenant retail gallery, developed by NAM. The project is currently under active construction and the lease agreements have been signed with the gallery anchors: M-Video, Sportmaster, and Detskiy Mir.
Speaking of the news, Maksim Kunin, Managing Partner at IMG, said: “The conclusion of these financing arrangements with the leading Russian bank confirms that the quality retail development projects present attractive opportunities for all capital providers. We are very excited at the progress on both projects.”