FASHION HOUSE Development officially launches first project in Moscow
FASHION HOUSE Outlet Centre Moscow is FASHION HOUSE Development’s first live project in Russia. They completed the acquisition of their site in Moscow in 2009 and then went on to develop the plans and artistic impressions for the site which were unveiled at a press launch event in Moscow.
Representatives of Russian and international brands attended including Mango, Sportmaster, Marks&Spencer, Miss Sixty, Reserved, Rive Gouche, Fabi & Podium.
Neil Thompson, Chief Commercial Officer, FASHION HOUSE Development, the leading developer of outlet centers in CEE, outlined its design and concept and highlighted the opportunities FHM has to offer.
Neil explained: ‘As well as attracting European and International brands with an established outlet offer there are many brands in Russia who have excess stock but no outlet offer as part of their retail strategy, so this provides an ideal opportunity for them to manage this stock and protect their brand. The few that do have an outlet offer are spread out so far the attraction of nearly 200 outlets under one roof is a first for Russia. It is ideal for the retailers and consumers.’
The FASHION HOUSE Moscow site is 38,580 m² with 28,765 sq m GLA, it will be home to 192 outlet units, food court and cafes, 1,865 parking spaces and a children’s play area. The grand opening is planed on November 2011.
Neil explained; “We considered several sites in the Moscow region, but decided on the site North West of Moscow near the Sheremetyevo International airport turned out to be the best place for our Outlet Centre. It has a catchment area of 13.4 million within a 90 minute drive time and is in a close proximity to Moscow and Khimki. It will also benefit from the future construction of highway between Moscow and St. Petersburg.”
The brands present were very supportive of the projects potential:“We really liked the approach of FASHION HOUSE towards the development of outlet centers. We will consider outlet centre FASHION HOUSE Moscow for our two brands Sportmaster and O’stin””, comments Nikolay Uskiev, SPORTMASTER.
"For us the issue of stock control is not critical, as Mango outlets are part of our business strategy. We already have stand alone outlets situated in Moscow and Ufa. Participation in FHM would allow us to diversify our distribution channels and be part of a larger draw to potential customers. Mango outlets are present in other Fashion House projects in CEE, that’s why FHM is an interesting project for us and in our opinion has very good prospects” – comments Andrey Vinogradov, director of RAMO company (brands Mango, Promod)
Neil is delighted with the response: “We have built a great offer and take great care in developing Outlet Centers that work for, retailers, investors and consumers alike - and that also look beautiful. We are very proud of the work we do and professionalism of the whole of the FASHION HOUSE team and it is great to see the success we have achieved in all of the marketplaces we have gone into. All our Outlet Centers have interesting architectural features that correlate with the culture of a particular area. FASHION HOUSE Moscow will be themed with a traditional Moscow classic architecture style, giving our consumers a unique shopping atmosphere.”
The architecture concept has been developed by Jan Demeyere of JDM. GVA Sawyer Moscow is acting as local project manager with the contractor yet to be appointed. The construction on site will begin in April 2011 with the grand opening of FASHION HOUSE Moscow planned for November 2011. The Outlet Centre will be managed and operated by Outlet specialists GVA Outlets. The £92,000,000 project is funded by the Liebrecht & Wood Investment Fund.
GVA Outlets will be responsible for international leasing “This is a new and exciting marketplace that we feel is ready for the FASHION HOUSE branded Outlet offer. There is high brand awareness amongst consumers who have money to spend and extremely high demand from our current tenants wanting to move into this market. We see a lot of interest for FHM from our current European and International tenants” adds David Carver, Head of Leasing at GVA Outlets.”
The Russian based consulting company MAGAZIN MAGAZINOV part of CB Richard Ellis has been appointed exclusive domestic letting agent.
Neil Thompson adds: “We were the first Outlet operator in Poland and now in Romania and we will be the first in Russia. We are the leading name in the Outlet Sector in the CEE and that is a fact we are very proud of. Currently Russia has no factory outlets and yet there is the potential for at least 20 based on population, brand awareness and potential spend. So far we have secured two locations with Moscow due to open in Nov 2011 and St. Petersburg in 2012 and we have a feasibility studies being carried out on a further 11 sites.’’
Outlets provide first quality, excess stock of famous brands sold at a discount in a high value environment. An Outlet Centre brings together a collection of outlets under one roof in an out of town location with easy access and parking providing consumers with a wide range of brands offering 30-70% discounts.
Magdus, July,02 2010
