We are one of the few who are currently developing concepts and opening new SCs
Evgeniya Loktionova, Director of UTG company
The commercial real estate market in Ukraine continues to be significantly affected by the war, but at the same time, it is trying to adapt to the new realities. Against this backdrop, UTG company manages to maintain its leading position and continue to grow. There is only one recipe for success here: work and work some more, no matter what. For example, this year we have already opened two new shopping centers: the Zhyto SC in Zhytomyr and the Pokrovsky SC in Izmail. In other words, when others announce the opening of SCs, we actually do it. Our team of brokers also continues to recruit tenants for seven new SCs that will open a little later.
Of course, the fact that the company performs a full cycle of work from concept to management helps us achieve such results. Currently, there are no consulting companies on the market that have such an advantage. We are the only ones who perform market analysis, assess the purchasing power of potential buyers, monitor conversion, rental rates, and vacancy rates of shopping centers. Thanks to our analytics, we see objective data on the basis of which we can effectively develop concepts, architectural solutions, recruit tenants, as well as launch and manage facilities. This is how we manage to demonstrate unique results and maintain our leading position.
New openings
For example, the official opening of the ZHITO shopping center took place in Zhytomyr in the spring. We developed the concept and provided exclusive brokerage services for this project. The new SC has a total area of 3,811 sq. m and is built on the principle of a retail park: it has a two-level concept – a basement and a first floor. Zhito features companies in various price categories and segments, including retail outlets of well-known brands: ATB supermarket, Sinsay modern clothing store, Prostor home goods and cosmetics chain, Andi and Obrana clothing and lingerie stores from Anabel Arto Aurora, and other popular operators. At the end of the summer, we opened our second professional SC, Pokrovsky, with a total area of 5,300 sq. m in Izmail. It became the second SC we launched in this city. We also acted as the concept developer and exclusive broker for the Pokrovsky SC. Specifically, we presented a unique set of tenants, some of which opened in the city for the first time. These include popular clothing, cosmetics, and sports stores: SINSAY, Sportcenter, EsteticAlab cosmetics store, as well as Ukrainian brands Duna, Anabel Arto, SYUF, and Famo. The shopping center also houses the Tavria V grocery supermarket, Tabakerka, Ukrzoloto, and Prostor stores, the Dobryi Den pharmacy, the MTA electronics store, and a currency exchange office.
The key to creating a successful SC
In my opinion, the most important thing when developing a new facility is to choose the right concept. After all, no two cities are alike, and right now, business is significantly affected by war, population displacement, and the presence or absence of competition in the chosen city. Therefore, the most important thing is to choose the right format for the future shopping center in order to meet the current needs of the population. In other words, it is important to choose what kind of facility is needed in a particular city, and its size is almost irrelevant; the main thing is what needs it should meet. In addition, it is necessary to calculate the pricing policy of brands based on the average income of the population living in the area of accessibility. Only after that should the concept be selected.
Then you need the right brokerage. After all, the opening of the facility must necessarily have the maximum possible occupancy of at least 70%. That is, it is important that the facility opens already filled with tenants, rather than doing so during the process of operation.
Only the combination of all these factors allows you to get a successful facility, such as the Appolo SC in Dnipro or Smart Plaza Polytech in Kyiv. Another example is the Ocean Plaza SC in the capital, which has been successful for a long time because we decided at the very beginning that all new brands entering Ukraine would appear first in this facility. As you can see, thanks to this approach, this project is stable and successful, despite fierce competition.
Methods or approaches for operating commercial facilities
Over the 23 years of its existence, UTG company has opened 145 shopping centers. Therefore, I could talk for hours about the methods and approaches we use. But let's take a look at the projects we have launched recently. For example, when expanding the Appolo SC, we selected mid-range brands to maximize customer presence and generate traffic. Another good example is the Global UA shopping center in Zhytomyr. This full-cycle SC has several phases. It was created by UTG from concept to full occupancy. Moreover, all phases were completed and filled during times of crisis: the shopping center opened in 2009 and was completed in 2014. And now a new phase is being built, which involves the reconception of the old part and the launch of the new phase. We are very careful in our approach to brokerage and the selection of operators: the priority is retailers that are not yet present in the city, so that the shopping center can maintain high visitor numbers and conversion rates and be as competitive as possible. Or, if we talk about the Pokrovsky shopping center, where we also developed the concept and performed brokerage and subsequent launch of the facility, we bet on operators that were not yet present in the city. And we won on this.
We also have examples of the reconception of existing SCs. Among the latest is the classic reconception of the Sofia Mall SC. This facility opened before the war and had the wrong format from the very beginning, because the developer simply created a specialized furniture SC together with a Silpo supermarket. But after the war began, the operators closed, and the vacancy rate of the facility increased dramatically – to more than 70%. In other words, the SC reached a stage where it could not sustain itself – there was no money for operation, and the situation reached a critical stage.
Therefore, after analyzing its location, we came to the conclusion that it needed to be reformatted into a classic regional SC that would best meet the needs of about 70,000 residents of the surrounding residential areas. We began to change it to a classic format, placing operators such as Jysk, KFC, EVA, Sinsay, New Balance outlet, Arena outlet, Comfy, and many others. Thus, within a year, we replaced all operators, and now the facility is 100% full and operating with high conversion rates. In other words, we redesigned it, completely replaced the operators, and turned it into a district-level SC with well-known chain stores and traffic-generating operators that generate traffic and meet the needs of the population.
To sum up, for a project to be successful, whether it is the creation of a new facility or the redesign of an existing one, it is very important to correctly define its purpose at the initial stage. Namely: who are we building for, who is our buyer, their profile. Only after that should we determine the brands that should be in it, and then, ideally, manage this SC for the first six months to stabilize the facility.
Future plans and forecasts
Of course, forecasts for the development of commercial real estate are influenced by economic, consumer, and geopolitical factors and paint a complex but dynamic picture. In 2026, we expect the opening of the 27,000 sq. m White Lines SC in Kyiv. The project is currently at an advanced stage of completion, with occupancy now at around 70%. Escalators have already been installed, floors have been poured, and interior finishing has begun.
We also plan to launch the Temp SC in Khmelnytskyi at the end of next year, with a total area of 50,000 sq. m. It is also at an advanced stage of completion, with an occupancy rate of almost 70%. Also in Khmelnytskyi, by the end of 2026, we expect to open the Proskuriv Plaza multifunctional complex with an area of 36,000 sq. m, which also already has about 70% of its space occupied. At the end of 2026, we plan to launch a new phase of the Global UA shopping and entertainment center in Zhytomyr, which will add about 20,000 sq. m of additional space. We are very careful in selecting tenants and are currently coordinating with operators who will be represented in the city for the first time. Thus, we expect high traffic at the renovated shopping and entertainment center and the creation of maximum competitive advantages for it.
As you can see, UTG company has many plans for the continued development of new space, which demonstrates the stability and adaptability of the company and commercial real estate in our country.