ST. PETERSBURG ?€” Turkish retail giant Yimpas plans to invest more than $100 million of its own funds to create a St. Petersburg-based mall network over the next two years.
Petersburgers can look forward to a vast array of Yimpas goods ?€” assuming, of course, they aren?€™t planning on buying alcohol: The new stores will operate in strict accordance with the Koran.
"Construction of the hypermarkets will go ahead entirely at the companies expense," said Ali Nagi Aranli, president of the ASG group of construction companies, which is part of Yimpas Holding.
The construction of three malls, with an area of 18,000 square meters each, will cost $100 million. Yimpas malls are a combination of foodstuff and non-foodstuff stores, restaurants and cafes, domestic-services shops and entertainment centers.
"Fifty percent of the goods will be supplied by Turkish enterprises that are part of Yimpas Holding, and 50 percent are to be supplied by Russian companies," Aranli said.
While the ban on alcohol sales is not unusual for Turkey, the Ramenka company that has built a chain of Ramstore supermarkets in Moscow sells alcohol, despite being Turkish.
Russian traders say that Yimpas is foolish in rejecting this source of considerable income.
"Alcohol production accounts for 10 percent of turnover in our stores," said Yelena Mokrova, advertising and marketing manager with St. Petersburg?€™s Megamart company, which owns five cash-and-carry stores. She said any limits on the goods on sale reduces the number of potential customers.
Yimpas Holding was established in 1982, unifying more than 100 enterprises operating in the foodstuffs, light industry, construction, electronics and metallurgical industries. Yimpas is the No. 3 taxpayer among private companies in Turkey. Its mall network comprises 52 stores with a total area of 500,000 square meters in Turkey, Germany, Austria and Belgium. In 2000, Yimpas Holding plans to open four new hypermarkets in Turkey and another 13 abroad.
It is not the only company that plans to build hypermarkets in St. Petersburg.
The Russian-German SPAG holding is working on a project for the creation of a multifunctional complex with a total floor area of 24,000 square meters in the historical center of the city.
A 50,000 square-meter, multiprofile center is part of the Mercury project that is planned for St. Petersburg?€™s northern suburbs.
"There are several construction projects simultaneously on the go for building Western-standard trade centers," said an analyst with the corporate real estate department of the Gamma financial group.
If foreign investors manage to take the initiative, there would be no space for local companies on the market, he said.
Gamma estimates show the retail market for food products and non-food products in St. Petersburg could be worth $3 billion to $4 billion per year.
Russian businessmen are held back by a shortage of funds for financing construction projects.
The BaltStalProkat Plus company, which owns a plot of land next to the Pionerskaya metro station, wants to use it to build the Pioneer trade and recreational center with a total area of 20,000 square meters.
"We are open for investments," said Andrei Grudin, general director of the company, adding that Yimpas Holding itself might act as an investor for the project.
Grudin said negotiations with the Turkish management are planned to be held in St. Petersburg at the end of the month. Pioneer needs about $10.5 million to $13.5 million for construction.
The minimum price of building a mall, before the cost of equipping the premises and purchasing the goods is taken into consideration, is $500 per square meter, the Gamma group say.
"With costs such as these, Western-style trade and entertainment centers would need five to six years to break even," the Gamma analyst said.
Petersburgers can look forward to a vast array of Yimpas goods ?€” assuming, of course, they aren?€™t planning on buying alcohol: The new stores will operate in strict accordance with the Koran.
"Construction of the hypermarkets will go ahead entirely at the companies expense," said Ali Nagi Aranli, president of the ASG group of construction companies, which is part of Yimpas Holding.
The construction of three malls, with an area of 18,000 square meters each, will cost $100 million. Yimpas malls are a combination of foodstuff and non-foodstuff stores, restaurants and cafes, domestic-services shops and entertainment centers.
"Fifty percent of the goods will be supplied by Turkish enterprises that are part of Yimpas Holding, and 50 percent are to be supplied by Russian companies," Aranli said.
While the ban on alcohol sales is not unusual for Turkey, the Ramenka company that has built a chain of Ramstore supermarkets in Moscow sells alcohol, despite being Turkish.
Russian traders say that Yimpas is foolish in rejecting this source of considerable income.
"Alcohol production accounts for 10 percent of turnover in our stores," said Yelena Mokrova, advertising and marketing manager with St. Petersburg?€™s Megamart company, which owns five cash-and-carry stores. She said any limits on the goods on sale reduces the number of potential customers.
Yimpas Holding was established in 1982, unifying more than 100 enterprises operating in the foodstuffs, light industry, construction, electronics and metallurgical industries. Yimpas is the No. 3 taxpayer among private companies in Turkey. Its mall network comprises 52 stores with a total area of 500,000 square meters in Turkey, Germany, Austria and Belgium. In 2000, Yimpas Holding plans to open four new hypermarkets in Turkey and another 13 abroad.
It is not the only company that plans to build hypermarkets in St. Petersburg.
The Russian-German SPAG holding is working on a project for the creation of a multifunctional complex with a total floor area of 24,000 square meters in the historical center of the city.
A 50,000 square-meter, multiprofile center is part of the Mercury project that is planned for St. Petersburg?€™s northern suburbs.
"There are several construction projects simultaneously on the go for building Western-standard trade centers," said an analyst with the corporate real estate department of the Gamma financial group.
If foreign investors manage to take the initiative, there would be no space for local companies on the market, he said.
Gamma estimates show the retail market for food products and non-food products in St. Petersburg could be worth $3 billion to $4 billion per year.
Russian businessmen are held back by a shortage of funds for financing construction projects.
The BaltStalProkat Plus company, which owns a plot of land next to the Pionerskaya metro station, wants to use it to build the Pioneer trade and recreational center with a total area of 20,000 square meters.
"We are open for investments," said Andrei Grudin, general director of the company, adding that Yimpas Holding itself might act as an investor for the project.
Grudin said negotiations with the Turkish management are planned to be held in St. Petersburg at the end of the month. Pioneer needs about $10.5 million to $13.5 million for construction.
The minimum price of building a mall, before the cost of equipping the premises and purchasing the goods is taken into consideration, is $500 per square meter, the Gamma group say.
"With costs such as these, Western-style trade and entertainment centers would need five to six years to break even," the Gamma analyst said.
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