Old Mutual Properties has won a contract to provide leasing, marketing, facilities management and operational support services for Ukraine’s best-known retail complex, Univermag Ukraina, which is now undergoing a $20 million renovation.
The appointment will see the company consulting to New York-based NCH Capital Inc which owns 93% of the complex in the heart of Kiev, the capital.
The city has a population of 4 million.
NCH, an investment group targeting the emerging markets of the former Soviet Union and Eastern Europe, is one of the largest investors in the privatisation programmes of the region. It has direct investments in more than 100 companies in Russia, Latvia, Bulgaria, Estonia Kazakhstan, Ukraine, Lithuania, Romania, Georgia and Moldova.
Brent Wiltshire, retail property executive of Old Mutual Properties, says the appointment is a major breakthrough into key emerging markets. It follows earlier consulting agreements by Old Mutual Properties in the Middle East.
“For NCH and Univermag Ukraina, we are developing an appropriate tenant mix plan and then rolling out a leasing strategy that best meets the needs to attract both international and local retailers to the 25 000m2 centre,” he says. “We will also provide marketing support, focussing both on prospective tenants and consumers, and training of centre management.”
“In the area of facilities management, we will issue tender specifications and service level agreements for centre services, evaluate tenders to ensure the centre is managed cost-efficiently to best standards, and award contracts to be carried out in accordance with service level agreements.”
Wiltshire says Old Mutual Properties will oversee the management of the complex for two years.
“One of the first opportunities to market Univermag Ukrania was at Mapic, the international retail exposition in Cannes in November. We have been showcasing our recent developments in Southern Africa and our range of property services for several years at Mapic and added Univermag Ukraina to our offering this year.”
He says the complex, first opened as a state department store in 1966, is in Victory Square, one of the best retail locations in Kiev.
“It is near the main train station and within an easy walk of the local bus, tram and metro system. It is estimated more than 200 000 commuters walk past the complex every day.”
ARTICLE ORIGINALLY PUBLISHED ON 26 NOVEMBER 2002 | SAPOA ONLINE