The 60,000 m² Uptown Tbilisi Center will host first visitors in Q2-2011 (GE)
Wednesday 28 April 2010
Rakeen Development Georgia is pleased to announce that the biggest shopping center in the whole Caucasus region will be delivered in Q2-2011. Developed by RAKIA/RAKEEN, IFC and local financial institutions this €200 million investment will provide an additional 60,000 m² of quality retail space in the new emerging market of the capital city of Tbilisi.
Uptown Tbilisi is integrated mixed-use commercial property comprising of retail, office and residential space. Construction of Uptown Tbilisi has been divided into three phases: the first phase, currently underway, involves construction of retail, leisure and entertainment components referred to as Uptown Tbilisi Centre.
Uptown Tbilisi is the first large commercial complex not only in Georgia but in the whole Caucasus region that will offer up-graded services to visitors: shopping, leisure and divertissement in unique relaxing environment. Uptown Tbilisi will has also the attractive advantage of local and foreign investors, as a low investment entry point has been set with projected NIY of 14% that is expected to be favorable to regional investors looking for stable returns.
Property Managed by Rakeen Georgia, Uptown Tbilisi will include 250 brands and a major international hypermarket new to the region as a main anchor tenant.
Rakeen Georgia expects to see growth in Tbilisi's retail property center although to date in comparison to EU cities Tbilisi has a low retail stock per inhabitant, high disposable spending per household and moderate rental rates.
“Retail property market in Tbilisi remains extremely immature and fragmented by western standards. Its two major problems are low quality of existing schemes and very limited presence of international and strong local brand retailers,” according to DTZ.
Within Tbilisi existing trade centers do exist and new brands are starting to appear although the thin spread of retail in trade centers and high street formats still has not established a clear central presence for shoppers.
“If all schemes planned for 2010 will be delivered to the market, by early 2011 total retail stock in the city will amount to around 161,880 m² (GLA), or 146 m² per 1,000 inhabitants, which is significantly less compared to other Western European, CEE and CIS markers.” (Q4 2009- DTZ analysis.)http://www.europe-re.com/system/main.php?p...articleid=16046