Ivanhoe Cambridge makes first mall acquisition in Moscow

Canadian-based shopping centre group Ivanhoe Cambridge has entered the Russian market with the acquisition of the upmarket Vremena Goda shopping centre in Moscow. The centre, opened last November, is located on Kutuzovskiy Prospekt boulevard and comprises 150 retail units over 30,000 m² of lettable space. The list of prestigious international retail tenants include Chanel, Cartier, Lacoste, Hermes, Montblanc and Burberry. The mall also features a V.I.P. cinema complex, a Globus Gourmet epicurean grocery, several restaurants, a department store and a Porsche dealership.

Ivanhoe Cambridge teamed up with Austrian real estate fund manager Europolis to acquire the shopping centre. The Canadian firm holds a 60% stake in Vremena Goda, with Europolis owning the rest. The financial details of the transaction were not disclosed. CB Richard Ellis (Russia) is to manage the asset on behalf of the partnership.

Rene Tremblay, CEO of Ivanhoe Cambridge, said the transaction marked a new step in the company's growth strategy. 'For us, it is also an excellent opportunity to gain a foothold in the Russian market, which is the third most attractive market in the world for retail commerce.'

The company has a real estate portfolio consists of more than 4 million m² of retail space and includes 70 regional and super-regional shopping centres. At end-December 2007, the market value of Ivanhoe Cambridge's assets was EUR 8 bn.

For Europolis, this was the third acquisition in Russia since it opened an office there in 2006. Europolis owns 40 properties in the Czech Republic, Hungary, Poland, Croatia, Romania, Russia and Ukraine. The portfolio is valued at EUR 2.3bn, and this should grow to EUR 5bn in 2012.