Opening of a Shopping Mall on Kievskoye Highway in Kaluga Region

Owing to developments in the sphere of trade and services business plans of shopping mall projects are in greater demand. During the years of its work Intesco Research Group has developed a multitude of business plans in the given field, which speaks of invaluable professionalism of our specialists. One of the most complex and successful projects was the shopping mall project in Kaluga Region.

The purpose of the business plan was justification of cost effectiveness of opening a shopping mall, as well as working out a program of its creation and development. The shopping mall under construction was intended for rendering of services on letting floorspaces to sales outlets.

Initiators of the shopping mall project filed a request with us about the development of a business plan, having a land plot for construction of commercial real estate facilities. The location of the shopping mall is a land plot in Zhukovsky district, Kaluga Region, at 105th km of “Moscow-Ukraine” car road.

Location of the future shopping mall

In the given case one of the first stages of business plan development was analysis of the selected location of the shopping mall: whether it was feasible to locate the given facility on the land plot of 5.5 ha under consideration. Our specialists analyzed the resource quality of the land plot and revealed peculiarities of adjoining territories.

The location peculiarities in the given project are the following:

• location outside the city borders;
• proximity to Kievskoye Highway.

The analysis showed a sufficient degree of infrastructure development close to the selected land plot, available access roads and territories for parking arrangement.

Space structure in the shopping mall under development

The next stage was a study of demand and supply of such services. For that purpose the level of occupation of existing shopping malls in Kaluga Region and the rental cost were analyzed. Analysis of activities of existing shopping malls made it possible to outline the structure of the future shopping mall area used. Shares of the total area for location of office and warehouse rooms, public catering centres, facilities of entertainment industry (game rooms, cinemas, etc.) were calculated.

Thus, according to calculations, the optimal materials supply base of the shopping mall would be 26 thousand sq. m. of areas. The shopping mall itself, with the total area of 36 thousand sq. m., would also include 859 parking lots and two floors.

Investment structure

The following stage in development of the shopping mall business plan was estimation of investment spending. At this stage our specialists estimated costs of developing all project documents and permits, conducting construction and installation works, works on internal and external utilities and so on.

According to calculations of Intesco Research Group specialists, project implementation would require investment in the volume of 1.61 billion rubles, with the following structure of investment:

Shopping mall payback

With such an investment structure, a simple payback period was calculated, which amounted to 5.5 years. These indicators were accepted with account that a food hypermarket or a consumer electronics supermarket would act like an anchor tenant (which the attendance of the shopping mall under development would, first of all, depend on). At the moment of business plan development leasing and operation negotiations were held with such anchor tenants as X5 RetailGroup, Eldorado, L’etoile, Sportmaster, Metrina, Shintop and others. A common practice in attracting anchor tenants is making offers of more favorable floorspace leasing terms.

Effectiveness rates of the new shopping mall in Kaluga Region

Based on the predicted leasing rate (which was calculated based on rates in similar shopping malls in the region) and the useful area of the building, project returns were calculated. They are shown in the table below.

Project effectiveness rates

The bank investment loan is attracted for the period of eight years, from the third quarter of 2013 to the third quarter of 2014 (the period of construction and documentation execution for the constructed buildings) at the annual rate of 14.75 %, and then for the rest period – at the annual rate of 12.5 %.

Besides, a part of the funds (20 million rubles), required for investment in the period from 4 quarter of 2014 to 1 quarter of 2015, will be reinvested from the company’s own circulating assets generated by that time.

You can order development of a business plan for your project by calling at +7 (495) 212-91-91 or filling in a request at the website, after which our manager will call you.

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