Privately owned Quinn Group, led by Ireland's richest man Sean Quinn, has acquired the 12,000 m[sup]2[/sup] Avrora shopping centre project in the Russia city of Ufa. The financial details were not disclosed but real estate analysts in Moscow suggested to the Irish Independent newspaper than the asset would have cost in the region of EUR 106 mln.
Privately owned Quinn Group, led by Ireland's richest man Sean Quinn, has acquired the 12,000 m2 Avrora shopping centre project in the Russia city of Ufa. The financial details were not disclosed but real estate analysts in Moscow suggested to the Irish Independent newspaper than the asset would have cost in the region of EUR 106 mln.
The industrial city of Ufa has a population of 1.1 million and is located in the western Urals, 1,500 km east of Moscow. A Quinn Group spokesperson told PropertyEU: 'We officially launched the Avrora project in Ufa last week. This is a combined shopping and leisure centre project that has just started construction.' The project will take two years to complete.
The development was bought earlier in the year and the Quinn Group used an international architectural firm based in the UK to complete the design 'utilising the most progressive in retail/shopping centre philosophy'. Quinn Group is managing the construction directly with its own established team in the region.
The spokesman said up-and-running assets are currently selling for 9-11% yield in Moscow, with the regional cities achieving a higher return. 'We expect our development projects to achieve a stronger yield reflective of the development market there,' he said. The Group has previously concluded up-and-running shopping centre deals in Ukraine and Turkey and the Caspiy Centre in Moscow is due to open mid next year. It has also completed office projects in Moscow and Kiev and is constructing largescale logistics projects in Moscow, Rostov-on-Don and Kazan. Overall the Group operations in Russia and Eastern Europe are proving very successful with a strong pipeline of high-quality projects coming down the line.'
The Quinn Group said it is also developing a logistics park in Ufa and the shopping centre project complements the group's operations there. 'All the major Russian and international retailers who are active in Russia have expressed interest in Ufa and in this project in particular,' the spokesperson said.
The Irish company is active in quarrying, property and insurance. Earlier this year the Sunday Times listed Sean Quinn, the son of a small farmer and who left school at 14, as Ireland's richest man with an estimated wealth of EUR 4.6 bn.