Panorama sells 50% of Kiev's Sky Mall project

Ukraine's largest commercial real estate developer Panorama Group said that it has sold a 50% share in its flagship Sky Mall project in Kiev to the Oledo Group, a company owned by businessman Andrew Adamowski. The financial details were not disclosed.

Panorama, which is part of Luxembourg-based Expert Capital, confirmed to PropertyEU in March that it was in talks to sell a stake in the 88,000 m² Sky Mall project, which represents an investment of around $150 mln (EUR 112.5 mln). The proceeds from the sale will be used to fund the development of the scheme, which is scheduled for completion in the second quarter of 2010.

Sky Mall is being developed in two phases, with Phase I including a 22,000 m² hypermarket delivered in late 2009 and Phase II offering a 70,000 m² retail gallery due for completion in the first part of 2010. The centre also offers 4,000 parking spaces and is anchored by an Auchan hypermarket, representing the French retailer's third operation in Ukraine after opening two hypermarkets in Kiev and Donetsk two years ago.

Additionally, Panorama has announced the creation of a new real estate subsidiary, named Astra Property, as part of the company's portfolio restructuring. The new unit will take over management responsibility for several shopping centre projects in the Ukraine.

In particular, Panorama said that it has transferred a number of development projects to the new unit, including the Sun Gallery shopping and entertainment centre offering 40,000 m² in Krivoy Rog, Phase I of the City Mall shopping mall offering 25,000 m² of retail area in Zaporozhye, as well as Phase I of the Inter Mall shopping centre in Simferopol and a number of plots of land in Kiev and the regions.