ESTA to invest over $100 million in renovating Kyiv's TsUM department store

Author: Interfax-Ukraine All articles by this author

More about Interfax-Ukraine

Feb. 14, 2012 13:32
215 159
ESTA Holding LLC which was created by CJSC System Capital Management to realize real estate projects, is planning to invest over $100 million in the reconstruction of Kyivsky TsUM.
Photo by Kostyantyn Chernichkin
ESTA Holding LLC, the managing company of the ESTA Group, which was created by CJSC System Capital Management (SCM, Donetsk) to realize real estate projects, is planning to invest over $100 million in the reconstruction of Kyivsky TsUM – Kyiv's central department store, at the crossing of Khreschatyk Street and 38/2 Bohdana Khmelnytskoho Street, reads a press release of the company.
"We'll retain the face of Khreschatyk Street: a new department store, unique in architecture and convenience for buyers, will be built behind the historic façade. We're attracting the best specialists and planning to invest over $100 million in the reconstruction project," reads the report, citing ESTA Holding Investment Director Maksym Hromadtsov.

According to the report, ESTA Group has started preparatory work before the reconstruction of the building, after which the gross area of the department store will double, to 45,000 square meters, and a 200-car underground parking area will be built. This will be achieved by using the territory of the courtyard and underground space, the company said, adding that the building's facade built in 1939 will be retained.

The architectural concept for the renovated TsUM was designed by the famous UK design bureau Benoy, in partnership with Ukrainian architects.

The company said that TsUM will retain the traditional format of a department store, while one of its new features will be a sloping atrium topped by a glass dome and light installations.

The parking area will be located on the two underground levels, while men's, women's and children clothes stores will be located on the first-sixth floors, while a roof with a terrace will feature restaurants. The project also foresees a supermarket.

The company plans to attract new brands that have not been presented in Ukraine and allocate some space for premium goods.

"We want TsUM to enter the league of department stores in Europe. We're sure that attendance of the renewed TsUM will reach 40,000-50,000 people per day," Hromadtsov added.

ESTA Holding will manage the building.

ESTA Holding LLC is planning to finish the reconstruction of Kyivsky TsUM in the autumn of 2014. On Feb. 1, 2012 TsUM was closed for reconstruction.

In spring 2011 Stolychny TsUM Ltd., part of ESTA Group, finalized the aggregation of assets of Kyivsky TsUM Trading House Ltd. and M-Service Ltd. (all based in Donetsk) in the form of a property complex of the Central Department Store (TsUM).

TsUM has a total area of around 21,500 square meters.

ESTA Holding is a managing company of the ESTA Group, SCM Group's real estate holding. ESTA Holding is an investor and developer, and carries out strategic management of commercial, hotel realestate and housing.

SCM is a professional investor that owns and controls assets in mining and metals, power generation and distribution, telecommunications, banking, insurance, media as well as in retail and real estate.

SCM is 100% owned by Ukrainian businessman and MP Rinat Akhmetov.

215 159

The Kyiv Post is hosting comments to foster lively public debate through the Disqus system. Criticism is fine, but stick to the issues. Comments that include profanity or personal attacks will be removed from the site. The Kyiv Post will ban flagrant violators. If you think that a comment or commentator should be banned, please flag the offending material.

comments powered by Disqus

Read more in {{sectionName}} section

All in {{sectionName}} section