Despite the pressure from law enforcement agencies on the business of Arricano Real Estate PLC (Cyprus) in Ukraine during 2023-24, the leading developer of shopping malls remains steadfast in its belief in justice and Ukraine’s victory. The company continues to reinvest in the development of its four shopping complexes, the restoration of the Sun Gallery shopping mall after a missile strike, and the construction of the Lukianivka shopping mall. Arricano Real Estate PLC also remains committed to working in frontline cities, creating jobs, and paying taxes and fees to the Ukrainian state.
According to a press release from the company, during the first half of 2024, Arricano Group companies in Ukraine paid a total of 81.6 million UAH in taxes and fees to budgets at all levels. Additionally, the group companies continue to systematically support the Ukrainian armed forces and provide assistance to military personnel, charitable foundations, and public organizations. Since the beginning of the year, the financial aid provided amounts to over 2.5 million UAH.
As of July 1, 2024, the vacancy rates in Arricano’s properties in Kyiv remain at 0%, in City Mall in Zaporizhzhia at 1.2%, and in Sun Gallery in Kryvyi Rih at 0.8%. The tenant mix includes leading retailers in Ukraine and lovemark brands such as Comfy and Silpo.
It is worth noting that within less than a month, a portion of the stores and establishments at Sun Gallery shopping mall, which was damaged in a missile strike in January 2024, have resumed operations. Currently, 74 operators are operating in the shopping center, and this number continues to grow.
„We understand that the operation of our shopping malls in cities near the front line is an important factor in maintaining stability and confidence in local communities. Therefore, we have not stopped working for a single day on the restoration of shopping centers and attracting socially important tenants, despite the actual attempts by law enforcement agencies to stop Arricano’s business in Ukraine. The investments in the renovation of frontline shopping malls and the restoration of Sun Gallery shopping mall amounted to approximately 51 million UAH,“ noted Anna Chubotina, CEO of Arricano Real Estate LLC, the company responsible for managing Arricano Group’s assets in Ukraine.
In June 2024, Sun Gallery and City Mall shopping malls changed their anchor operator to the popular Silpo supermarket chain. This significantly increased foot traffic in both properties and had a positive impact on the turnover of operators in all product groups.
Furthermore, in the first half of the year, Arricano’s shopping complexes saw the opening and renovation of 84 stores and establishments with a total area of 25,400 square meters. Supporting Ukrainian brands is an important development direction for the company, hence their representation in Arricano’s shopping malls is gradually increasing.
The group’s shopping mall development strategy involves further updating formats and launching new stores. Currently, a significant number of contracts with new tenants are being finalized, which will complement and diversify the high-quality pool of stores and establishments in all shopping malls.
By the end of 2024, Arricano’s shopping centers expect more openings, including Sinsay at Sun Gallery, Lesia at Prospekt shopping mall. Plans for the second half of the year include the reopening of Puma, Citrus at City Mall, as well as Goldi, Athletics, Akvarel, and operators in the food court area of Sun Gallery.
In total, over 11.2 million guests visited Arricano’s shopping centers in the first six months of 2024. During this period, around 100 events and activities were held, including 19 with a charitable component, and 17 CSR projects were implemented. Over this period, more than 170 tenant partners and over 110 external partners actively joined Arricano’s initiatives.
„The company’s owners believe that investing in the development of Ukrainian projects during wartime is not just a business matter but a matter of supporting the country and its citizens who have become victims of aggression. Despite the unprecedented pressure on Arricano’s business in Ukraine from law enforcement agencies, we are confident that the law is on our side, and we continue to implement our investment plans not only in existing but also in future projects,“ emphasized Anna Chubotina.
In the first half of 2024, Arricano continued work on the shopping mall project in Lukianivka, Kyiv, investing in planned activities to improve the facility’s engineering networks. By the end of the year, the team plans to hold events to enhance conceptual solutions and the development strategy of the shopping center.
For more information about Arricano’s activities, visit the official website and the company’s Facebook page.
In conclusion, Arricano Real Estate PLC’s commitment to Ukraine’s development and support during challenging times demonstrates its dedication to the country’s growth and prosperity. Despite external pressures, the company remains focused on its mission to create vibrant shopping destinations, support local communities, and contribute to the economic development of Ukraine.