OREANDA-NEWS. On 21 July 2008 was announced, that the RTM Group is currently building four shopping and entertainment centers in Russian cities of St. Petersburg, Lipetsk, Samara, and Odintsovo. The sites’ total gross area is 200,272 sq. m., of which 117,376 sq. m. are leasable. Occupancy rates of the shopping and entertainment centers under construction vary from 65 to 80 per cent.

While the SECs are still under construction, the RTM Group has been successful in securing prelease agreements with such major Russian and international chains as REAL, MediaMarkt, MOSMART, Sportmaster, Tekhnosila, and others. All preleases are long-term (10 years and beyond). European chains REAL and MediaMarkt are intent on renting retail space from RTM for as long as 30 years.

“Prior to making a decision to buy land and build a center, we measure potential interest such a center would generate“, explains Vadim Prikhodko, JSC RTM’s Deputy General Director. “This involves talking to our largest tenants who may later become the SEC’s anchor tenants. If they show interest in the future center, we sign Letters of Intent, which are closely followed by Prelease Agreements. This guarantees that the shopping and entertainment center, once completed, is going to be a success".

Once commissioned, the SECs are expected to bring in USD 52.2 mln in annual lease income. (Exclusive of VAT, according to a valuation by Colliers International of December 31, 2007)