Gigantomania: why Vagif Aliyev will build the Yuzhny Mall

Vagif Aliyev intends to build in Kiev the largest in Ukraine Yuzhny (“South”) ​​Mall 450,000 sq.m. square. The new facility will have to compete with the nearby SEC “Respublika”, put up by the NBU for sale.

Construction the largest in Ukraine Yuzhny(“South”) Mall on Glushkov str. in Kiev will begin at the year end, — the company Mandarin Plaza (owned by Vagif Aliyev) head Alexander Chernitsky reported LIGA.net. The work is scheduled to be completed in two years. Experts believe that it will not be easy to fill a new facility with tenants. The “Yuzhny” (“South”) will have to compete with the nearby SEC “Respublika”, which the NBU collected for debts from Dmitry Firtash.

Titanic swing

The Yuzhny(“South”) Mall will be built on the Ice Stadium site, which belonged to the company Ukrsotsbudinvest by Sergey Taruta. “We have redeemed the Ice stadium on which the Yuzhny (“South”) Mall will appear,” — Chernitsky told LIGA.net. In the new shopping center there will be a sports arena with ​​about 70,000 sq.m.square, an entertainment zone per 100 000 sq.m. and a shopping gallery.

Chernitsky did not announce the investment amount in the new project. According to the XXI Century development company co-owner estimation Oleg Salmin, at least $300 million will be invested in the SEC “Yuzhny”(“South”).

Vagif Aliyev is a well-known player in the capital’s commercial real estate market. He owns the shopping center “Mandarin Plaza” and the business-center “Parus”. Earlier, Aliyev announced his intention to build five large SEC on the capital right bank and three SEC — on the left. While he managed to open only one of the facilities — Lavina Mall with ​​about 170,000 sq. m. total square. Two more — BlockBuster Mall and “Ocean Mall — are under construction.

Aliyev sold the entertainment complex “Arena Entertainment” about 6,000 sq. m. squares, as well as the business-center “Senator” to realize his plans. He does not call the transaction amount and the buyer’s names.

Tough competition

Industry experts are evaluated skeptical about the new developer beginning. “I would not build a large shopping and entertainment center on the Ice Stadium site on Vagif Aliyev place,” — the project company director “Archimatika” Alexander Popov says. The reason is the neighborhood to the SEC “Respublika” with ​​about 300,000 sq. m. total square, which has already been completed by 80%. The object is in pledge with the NBU, but soon it can get a new owner.

“Respublika”, most likely, will open earlier than the Yuzhny (“South”) Mall. Two objects will compete for tenants, this will lead to a decrease in its profitability”, — Popov emphasizes. The objects will indeed compete among itselves, “Zeebra” (TM Butlers, Glossip) company co-owner Dmitry Ermolenko confirms.

The news about the Yuzhny (“South”) Mall construction can scare off individual investors who could invest in SEC “Respublika” — the consulting company “RetaiNet” co-owner Alexander Lanetsky notes. Only local companies can become interested in the object on his opinion.

“The Yuzhny (“South”) Mall has a huge advantage — the proximity to the Hippodrome metro station, that is guaranteed to attract a visitors large stream. It was this fact that influenced the “Ocean Plaza” success”, — Oleg Salmin is convinced.

The Sky Mall third phase constructing will resume in the autumn