Arricano Real Estate PLC, a leading developer of shopping malls in Ukraine, has faced pressure from law enforcement agencies in recent years. Despite this, the company remains committed to the country and continues to reinvest in the development of its four shopping complexes. This includes the restoration of the Sun Gallery shopping mall after a rocket strike and the construction of the Lukianivka shopping mall. Arricano also continues to operate in frontline cities, create jobs, and contribute taxes to the Ukrainian state budget.
According to a press release from the company, Arricano Group companies in Ukraine paid a total of 81.6 million UAH in taxes and fees to various levels of government during the first half of 2024. Additionally, the company has been actively supporting Ukraine’s defense forces, military personnel, charitable foundations, and civil society organizations, with financial assistance exceeding 2.5 million UAH since the beginning of the year.
As of July 1, 2024, the vacancy rates in Arricano’s shopping centers remain low, with 0% in Kyiv, 1.2% in City Mall in Zaporizhzhia, and 0.8% in Sun Gallery in Kryvyi Rih. These shopping centers boast a tenant mix that includes leading retailers in Ukraine and beloved brands like Comfy and Silpo.
Despite facing challenges, Arricano has managed to reopen a significant number of stores and establishments in the Sun Gallery shopping mall, which was damaged by a rocket strike in January 2024. Currently, 74 operators are operating in the mall, with this number expected to grow.
Anna Chubotina, CEO of Arricano Real Estate LLC, the company responsible for managing Arricano’s assets in Ukraine, emphasized the importance of maintaining operations in cities near the front line. She highlighted the company’s ongoing investments in renovating shopping centers and attracting socially significant tenants, despite attempts by law enforcement agencies to disrupt Arricano’s business in Ukraine. The investments in revitalizing frontline shopping centers and restoring the Sun Gallery shopping mall amounted to approximately 51 million UAH.
In June 2024, Sun Gallery and City Mall changed their anchor operator to the popular Silpo supermarket chain, resulting in increased foot traffic and improved sales for all operators. Additionally, Arricano opened and renovated 84 stores and establishments totaling 25,400 square meters in the first half of 2024, with a focus on supporting Ukrainian brands.
Looking ahead, Arricano plans to continue updating formats and launching new stores in its shopping centers. The company is currently finalizing contracts with numerous new tenants to enhance the quality and variety of stores across all shopping centers.
By the end of 2024, Arricano’s shopping centers are expected to see more openings, including Sinsay in Sun Gallery and Lesia in Prospekt. Plans for the second half of the year include the reopening of Puma, Citrus in City Mall, as well as Goldi, Athletics, Akvarel, and food court operators in Sun Gallery.
Overall, Arricano’s shopping centers welcomed over 11.2 million guests in the first half of 2024. The company organized approximately 100 events, including 19 with a charitable component, and implemented 17 CSR projects. Over 170 tenant partners and more than 110 external partners actively participated in Arricano’s initiatives during this period.
The owners of the company believe that investing in Ukrainian projects during times of conflict is not just a business matter but a way to support the country and its citizens affected by aggression. Despite facing unprecedented pressure from law enforcement agencies, Arricano remains committed to implementing its investment plans in existing and future projects in Ukraine.
In the first half of 2024, Arricano continued working on the Lukianivka shopping mall project in Kyiv, investing in planned activities to improve the facility’s infrastructure. The team plans to focus on refining conceptual decisions and the development strategy of the shopping center by the end of the year.
For more information on Arricano’s activities, visit their official website and Facebook page.