•   1 specialized children’s shopping center of the district format (SC Uley, GLA 6,800 sq m) and new phases of existing centres (SC Vremena Goda, GLA 6,000 sq m and Vidnoe Park, GLA 18,200) were completely opened in Q3 2018. At the same time, conversion of retail part of MUC Lotte Plaza into office and other space usage was started. Thus, net GLA of 12,800 sq m was added to the existing stock.

•   Vacancy is continuing to decrease for two years, since Q3 2016. It amounted 8.1% in Q3 2018, which is 0.9 pp compared to previous quarter.

•   We forecast further vacancy decrease to 7.5-8.0% by the end of 2018, which is determined by active take-up of space in existing SCs by retailers and high occupancy rate in new schemes at the time of opening (space leased before their openings).

•   Prime rental rate hasn’t changed since the beginning of the year and amounts to 200,000 RUB/sq m/year. In Q4 2018 its inflationary growth by 1-4% to 202,000-208,000 RUB/sq m/year is possible on the background of vacancy rate shrinking.