Two German companies’ refurbishment of listed building will provide 30,000m2 of shopping space to cater for rising purchasing power of Russia’s second-largest city
St Petersburg Immobilien und Beteiligungs (SPAG), a listed German property company, has entered into a co-operation agreement with Hamburg-based ITC Immobilien Team Consulting to develop a centrally located shopping centre in St Petersburg. The €71.5m (DM140m) Newskij International Center is on Newskij Prospekt.
The scheme will comprise more than 30,000m2 and will be the largest city centre scheme in St Petersburg. ITC managing director Dr. Gisbert Beckers said: “We see excellent prospects for the development of this inner-city location in one of the most densely populated areas of Europe, with its rising purchasing power, particularly for international quality and branded products.” According to the project’s promoters, demand for retail space substantially exceeds supply.
ITC, which is the shopping centre specialist of the Westdeutsche ImmobilienBank group, will be in charge of the project planning, management and letting as well as the long-term centre management. SPAG is acting as developer and investor for the project, and the company expects to start work on the property later this year. This is SPAG’s second project in St Petersburg.
