Budhouse Group’s shopping centers were visited by 28.6 million people in 2021, which is 50% more than in 2020, the developer’s press service reported.
Such a significant increase is explained, first of all, by the opening of Kharkiv shopping center Nikolsky in May 2021. If we compare the attendance of other operating shopping centers, then there is also a gradual recovery of traffic after a fall in 2020 – a 13.1% increase. But none of the company’s shopping centers has yet reached the level of 2019, which is explained by quarantine restrictions, which also took place in 2021.
On average, as reported by the press service, there were 552 visitors per 1,000 square meters of the mall area. According to the company’s research, on average, visitors visit Budhouse Group’s shopping centers seven times a month and spend 73 minutes in them per visit. This is about the same as in 2020, and 16% less than in 2019, due to the restriction of the entertainment and catering sector.
The total turnover of Budhouse Group’s shopping centers in 2021, taking into account the new Nikolsky shopping and entertainment center, amounted to about UAH 10.4 billion. The turnover of Budhouse Group’s shopping centers in hryvnia equivalent in 2021 increased by 22% compared to 2020 and by 13% compared to 2019. In euros/dollars, the turnover of the company’s facilities reached the level of 2019 and even slightly exceeded it. The largest growth in turnover was observed in the Forum Lviv shopping center (27%).
The average vacancy in Budhouse Group’s shopping centers in 2021 was about 0.8% (0.6% in 2020). The minimum vacancy was recorded in the Forum Lviv shopping center and the Lubava shopping center (0.4-0.5%).
The rotation of tenants has decreased compared to 2020. In just a year, 19 new lease agreements with a total area of 3,600 square meters were signed in the existing shopping centers. For comparison: in 2020, some 30 new contracts were signed for a total area of more than 6,500 square meters.
Budhouse Group is a full cycle company engaged in investment, development and management of sustainable real estate assets. Since 2009, the company has opened four shopping centers: Fabrika shopping center (Kherson), Lubava shopping center (Cherkasy), Forum shopping center (Lviv), Nikolsky shopping center (Kharkiv) and Khortitsa Palace hotel (Zaporizhia). There are two projects at the implementation stage – Yessa shopping center (Odesa) and Khortitsa Mall shopping center (Zaporizhia).
The development company Budhouse Group will invest about EUR 314 million in three projects in the next three years, namely in the Yessa (Odesa) – about EUR 12 million, the Khortitsa Mall (Zaporizhia) – EUR 82 million, and in the Hartz complex (Kyiv) – about EUR 220 million, Anatoliy Shkribliak, founder and shareholder of one of the largest Ukrainian developer Budhouse Group, said in an exclusive interview with Interfax-Ukraine.
“This summer we are resuming the construction of the Yessa shopping and entertainment center in Odesa, we plan to complete it in about a year and two months, in the autumn of 2021,” Shkribliak said.
The expert added that since the project was suspended in 2014, its reconception will be carried out.
In addition, this summer, the construction of the Khortitsa Mall project (the former working title is the Fabrika-2 Mall) will begin in Zaporizhia.
“This object will be built on a destroyed industrial zone located on the main highway of Zaporizhia. Investments in the construction of a new shopping and entertainment center, with a total area of 85,000 square meters and a lettable area of 65,000 square meters, will amount to about EUR 82 million. In two years and a half this center will become the largest and most preferable in Zaporizhia,” Shkribliak said.
The site for the multifunctional complex Hartz in the center of Kyiv on the Peremohy Avenue was cleared back in 2011. “The project in the Ukrainian capital should become the ‘icing on the cake’. We will start its construction after the completion of projects in Odesa and Zaporizhia,” Shkribliak said.
According to him, the estimated payback period for projects is eight years or more.
Budhouse Group investment and development group of companies (BHG, Kyiv) in 2020 reduced the turnover in its shopping and entertainment centers Fabrika (Kherson), Liubava (Cherkasy) and Forum Lviv (Lviv) by 11%, while in 2019 the increase was 12.8%, the company’s press service said on Thursday.
“Compared to 2020, the turnover of shopping centers in hryvnias has significantly decreased. If in 2018 the average growth was 23.3%, and in 2019 it amounted to 12.8%, then in 2020, for obvious reasons, this figure decreased by 11%. The total turnover of Budhouse Group shopping centers in 2020 amounted to about UAH 6.8 billion,” the developer’s press service said.
According to it, the smallest drop in trade turnover (by 2.6%) was recorded in the Liubava shopping and entertainment center.
According to the group, traffic to shopping centers in 2020 decreased by 28% compared to the previous year, to 19.4 million people. In addition, visitors spent 16% less time in the malls due to restrictions on the operation of entertainment zones.
The average vacancy rate for the group’s malls was 0.6% over the year, with the lowest rate (0.3%) recorded in the Forum Lviv mall. The company also signed 30 new lease agreements for premises with a total area of 6,500 square meters versus 40 contracts for 3,100 square meters in 2019.
The rotation of tenants decreased compared to 2019 and was mainly due to the difficult economic situation. The largest transactions were concluded with LC Waikiki and Budynok Ihrashok in the Liubava shopping and entertainment center.
Budhouse Group LLC was established in 2006. It is the owner and developer of commercial, office, hotel and residential real estate in Kyiv, Lviv, Cherkasy, Kherson, Odesa, Kharkiv, and Zaporizhia.
The charter capital is UAH 95.1 million.
