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EBRD backs Russia's first giant shopping centre
$100 million loan to IKEA for Moscow project
The European Bank for Reconstruction and Development is lending the Russian subsidiary of the IKEA Group $100 million to finance Russia's first combined giant shopping centre and entertainment complex on the outskirts of Moscow.
The high visibility project, building on the success of IKEA's first two Moscow stores, will create Russia's largest shopping mall, covering 170,000 square metres, and introduce to the Russian market the concept of an integrated retail and leisure centre. It is expected to attract 25 million visitors a year.
The new complex will be built alongside IKEA's existing store in southwest Moscow. It will consist of five major anchor stores, about 250 smaller shops, 10 restaurants, a multi-screen cinema and a skating rink, as well as a giant parking lot. The complex will create some 5,000 jobs.
The 10-year loan is the EBRD's first to IKEA.
IKEA is a company focused on a long-term view of Russia and committed to good corporate governance and sustainable development, said Noreen Doyle, First Vice President at the EBRD. In turn, there are interesting possibilities for follow-up investments with IKEA and to help the development of local suppliers, she added.
IKEA's initial success in Russia demonstrated a strong marketing strategy and provides proof that adhering to transparent purchasing and development practices, alongside sound corporate policies, works in Russia, Ms Doyle added.
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