About Arricano

Corporate strategy


The strategy of Arricano is to build upon its current position as a leading developer and operator of European-style shopping and entertainment centres in the Ukrainian commercial property market.

To enable this, Arricano is focused on achieving the following corporate objectives:

  • To increase the size of the portfolio to 9 shopping complexes over the next 4 years;
  • To continue to pursue high standards in corporate governance and business transparency practices;
  • To have input in the external regulatory and political factors that would facilitate the effective and profitable operation of the Company;
  • To promote the social and corporate responsibility of the Company;
  • To further develop new long-term relationships with clients, partners, financial institutions and public authorities;
  • To maintain high quality service levels across Arricano’s properties in order to strengthen the existing relationships and form new strategic partnerships with leading Ukrainian and international retailers;
  • To offer a comfortable, premium quality, European-standard shopping experience to Ukrainian consumers;
  • To become an industry leader in all areas of operation:
    • the best service model in tenant relations;
    • the best shopping offering in the SEC catchment areas;
    • the best marketing communications and PR;
    • the most efficient management of SEC’s;
    • the most innovative Information Technology systems and practices;
    • the most motivated and professional personnel;
    • the most effective internal business processes
      • By working towards these objectives increase the value and strength of the Company.

Corporate history


2017

The company has declared 2017 as the year of customer experience. For Arricano team, it is very important not only to develop the facilities on a high-quality level, to cooperate with the best partners, improving the tenant mix, but also to work on improving the services' quality at all levels: in the store, cafe, restaurant, and at all points of the services provided by the shopping mall. Arricano continues the B2B Upgrade by Arricano program, launched in 2016, a series of educational projects for employees of the company's tenants. The results of regular marketing research conducted by the company indicate the need for the development of a project to train staff and the importance of using other tools to improve customer experience.

Arricano company is an active participant in business events in Ukraine and abroad, whose main goal is to improve the investment climate in the country and the reputation of «Ukraine» brand. The CEO and top management of the company openly advocate that transparent business conditions become the standard, and protection of foreign and local investments was a priority for the government of Ukraine.

The CSR initiative of Arricano within the Business 2 Students (B2S) project, launched in 2016, was supported by tenants, and in March 2017 the company has launched the third wave of the project, according to the results of which the KNUTE students are able to undergo internships in companies of leading retailers in Ukraine, and also in media companies developing the retail and development sector.

2016

2016 was a service year for Arricano. The importance of the service business model for the company is determined not only by new projects aimed at improving services in all areas of the company, but also at the implementation of the new Corporate Social Responsibility (CSR) initiatives. So, in 2016 Arricano launched a corporate social responsibility project B2S (Business to Students) by Arricano, in which top managers share practical knowledge and experience with students. Maintaining the value of the service business model, Arricano also initiated a CSR project for tenants - a course of lectures and practical training for the staff of the tenants of all shopping centers by the best trainers and practitioners.

In April Arricano published the results of the company for 2015. With a significant drop in the overall market, the decline in revenue in dollar equivalent amounted to only 10% in the reporting currency. The growth of operating profit amounted to 80%.

The company continues to fight for its illegally deprived asset - Sky Mall shopping center. On May 5, 2016 the London Court of International Arbitration has adopted a decision in the arbitration between Arricano Real Estate Plc and Stockman Interhold S.A. in respect of the ownership of shares of Assofit Holdings Limited, the holding company, which previously wholly owned Sky Mall shopping center, located in Kyiv, Ukraine. According to this decision, all the shares of Assofit Holdings Limited, which were previously owned by Stockman Interhold S.A., should be transferred to the ownership of Arricano Real Estate Plc. not later than June 5, 2016 for $ 0.

2015

Arricano is strengthening its competitive position in the commercial property market: despite the economic downturn and decline in household income, Arricano’s shopping centres demonstrate stable retail footfall and increased interest from potential tenants. Thus, in the course of 2015 over 150 new lease agreements have been signed. As of 31 October 2015, the Gross Leasable Area of the 5 shopping centres under Arricano’s management reached 147,800 sqm.

The ambitious construction of the Lukianivka Mall (provisional title) in Kyiv is well underway. Lukianivka Mall will become the first shopping and entertainment complex in Ukraine to incorporate two local architectural heritage sites; namely the Lukianivka depot of the city railway and the power plant which serves it. To restore these architectural monuments to its original state, Arricano will make use of the best industry practice in the field of building restoration and the functional integration of heritage sites into the shopping complex.

The Odessa Mall project (provisional title) has also gained new momentum. In 2015 the Odessa Public Prosecution office retracted its claim to declare the previous court ruling on approval of the detailed site plan by the Odessa municipal authorities illegal. The site plan had been developed and financed by Arricano, and the project was supported by the local authorities and the Head of Odessa regional administration.

The Prospekt shopping and entertainment complex emerged as the winner of the State Architecture and Building Inspectorate competition in August 2015, having been declared the best communal venue of the year. It has also been listed in the “Project of the Year” category by two international organisations: Chartered Institution of Building Services Engineers (CIBSE, London) and EEA Forum and Project Awards in Kyiv.

Two Arricano properties topped the 2015 Kiev shopping centres rankings compiled by the Ukrainian Retail Association. In the “Traditional medium sized shopping and entertainment centre” category the top two positions were taken by Prospekt (Kiev) and RayON (Kiev) respectively.

2014

In September Arricano opens the Prospekt SEC in Kyiv with a Gross Lettable Area (GLA) of 30,400 sqm.

The GLA of the 6 implemented projects by Arricano exceeds 211,000 sqm.

Arricano plans to expand its project portfolio to 9 shopping complexes in the next 4 years. The properties to be added include Lukianivka SEC (Kyiv), Petrivka (Kyiv) and Odessa Mall (Odessa).

2013

On 12 September 2013 Arricano Real Estate plc launched its IPO (Initial Public Offering) on the Alternative Investment Markets (AIM) of the London Stock Exchange. Arricano raised USD 24 mln and purchased an equivalent of USD 66 mln of property assets in exchange for issued shares. The market capitalisation of the Company at the point of IPO was approximately USD 241 mln. This was the first public offering of shares of a Ukrainian real estate developer after the 2008-2009 crisis, and the first IPO of a Ukrainian entity in 2013.

Arricano received 4 lines of credit from Ukrainian and international banks for the total sum of around USD 100 mln, distributed as follows: a loan of USD 25 mln for the period of 5 years from one of the largest Russian banks in June 2013, a loan of USD 15 mln for the period of 7 years from Raiffeisen Bank Aval (Kyiv) in August 2013, a loan of USD 30 mln from the Ukrainian Oschadbank for the construction of Prospekt SEC, payable over 7 years in October 2013 and a USD 28.8 mln corporate loan from the UBS bank in 2013.

2012

Arricano puts into operation RayON, its second shopping and entertainment complex in Kyiv with the GLA of 24,350 sqm.

2011

Arricano expands its project portfolio by completing the construction of City Mall, a new commercial property project in Zaporizhzhya with a GLA of 21,450 sqm.

2010

Arricano puts into operation the second part of Sky Mall, one of the largest shopping complexes of the Ukrainian capital. Sky Mall’s Gross Building Area (“GBA”) amounts to 90,500 sqm., while its GLA nears 68,000 sqm.

2008

The commencement of operation of subsidiaries of Retail Real Estate S.A. (Luxembourg), presently a majority shareholder of Arricano, on the Ukrainian market.

Arricano opens the Sun Gallery, a shopping and entertainment complex in Kriviy Rih with the GLA of 35,600 sqm.

Arricano signed a credit agreement with the EBRD in Ukraine for the amount of USD 139,307 mln.

The 100% owned subsidiaries of Retail Real Estate S.A. are merged into a single company, Arricano, created for the construction and operation of shopping centres in Ukraine.

2007

Opening of the first line of Sky Mall shopping complex in Kyiv.

Received a USD 13 mln loan from Ukrsibbank for the continued development of City Mall shopping and entertainment complex in Zaporizhzhia.

2005

The commencement of operation of subsidiaries of Retail Real Estate S.A. (Luxembourg), presently a majority shareholder of Arricano, on the Ukrainian commercial property market.

Key facts


  • Arricano is the leading developer and network operator of high-quality Shopping and Entertainment Centres (SECs) in Ukraine.
  • In September 2013, Arricano completed a successful IPO and listed on the AIM-market of the London Stock Exchange
  • The Company has the biggest portfolio of completed shopping malls in Ukraine: the total GLA of Arricano’s 6 malls is approximately 150,000 sq m.
  • There are more than 500 tenants across the SECs owned and operated by Arricano.
  • The Company can use internal resources and also long-standing, secure relationships with principal financial institutions when seeking funding for developing its projects.
  • The Company develops its SECs according to the European business standards. Financial statements are submitted according to the IFRS standards.
  • The Company is managed by the high-profile team of European and Ukrainian managers having several years’ experience of operating in the commercial real estate sector.

Arricano owns the following SECs:

  • City Mall, Zaporizhzhia
  • Sky Mall (minority interest), Kyiv
  • RayON, Kyiv
  • Prospekt, Kyiv
  • Sun Gallery, Krivyyi Rih.

Projects


RayON

RayON Shopping and Entertainment Centre (SEC) is the only European-style shopping and entertainment centre in the Troeschina residential district. Given the densely populated catchment area and thanks to its convenient location, proximity to key transport hubs, efficient tenant mix and high-quality entertainment events, RayON has become the focal point of shopping and cultural life in Troeschina.

Sun Gallery

Sun Gallery Shopping and Entertainment Complex has been the prime shopping and leisure venue in the city of Kriviy Rih for the past 7 years. Being the only shopping centre of its kind in the city, Sun Gallery exclusively hosts the most popular retailers as well as an Auchan food hypermarket.

Prospekt

Opened at the end of 2014, Prospekt Shopping and Entertainment Complex is one of the largest shopping and entertainment venues on the left bank of the city of Kiev. The stylish interior, quality anchor tenants and well-balanced tenant mix combine to offer an enjoyable shopping and leisure experience to all visitors.

Sky Mall

Shopping entertainment centre “Sky Mall” is located in the left bank of Kyiv, in the Desnyansky administrative district, closely to the important transport connection – Moskovsky Avenue. Due to the convenient roundabout built especially for this mall the visitors can easily access “Sky Mall” both by car and by public transport.

City Mall

City Mall is the most dynamic and most frequented shopping and entertainment complex in Zaporizhzhia. Visitors can enjoy a great variety of goods and services and a range of diverse entertainment events, promotions and family show programmes for all age groups.

Official information


Arricano Real Estate Plc was incorporated on 31 January 2008 as a company limited by shares under the name Arricano Trading Limited. On 12 September 2012 the name was changed to Arricano Real Estate Plc.

The registration number assigned by the Department of Companies and Official Receiver of Ministry of Energy, Commerce, Industry and Tourism to Arricano Real Estate Plc is HE 221186.

The registered address of Arricano Real Estate Plc is at: Thessalonikis, NICOLAOU PENTADROMOS CENTER, Flat/Office 1002, 10th floor, 3025 Limassol, Cyprus.

The VAT number: CY 10221186H

Official website: http://arricano.com

Page on LSE website: http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/company-summary/CY0102941610GBUSDASQ1.html

Corporate documents


Advisors


Nominated Advisor and Broker
WH Ireland Limited

24 Martin Lane, London EC4R 0DR, United Kingdom
Tel. +44 (0)20 7220 1666
Website: https://www.whirelandplc.com/

CORPORATE SECRETARY

ASOTED SERVICES LIMITED

Nicolaou Pentadromos Centre, Office 1002

Thessalonikis Street, P.O. Box 56850

3110 Limassol, Cyprus

Tel: +357 25 85 00 00

Fax: +357 25 85 00 55

Email: asoted@asoted.com

Website: http://www.asoted.com

CORPORATE REGISTRAR

CYMAIN REGISTRARS

26 Vyronos Avenue,

1096, Nicosia, Cyprus

http://www.cymainregistrars.com.cy

FINANCIAL PR

NOVELLA COMMUNICATIONS

19 Buckingham Gate

London SW1E 6LB

Tel: 020 3151 7008

E-mail info@novella-comms.com

Website: http://www.novellacommunications.com

Depositary Registrar

Computershare Investor Services PLC

The Pavilions Bridgwater Road

Bristol BS99 6ZZ

United Kingdom

Phone +44 (0) 370 702 0003

Fax +44 (0) 370 703 6101

REPORTING ACCOUNTANT In CYPRUS

KPMG LIMITED

KPMG Center, 11, 16th June 1943 Street,

3022 Limassol, Cyprus

Tel: +357 25 869106

Fax: +357 25 363842

Website: https://home.kpmg.com/xx/en/home.html

REPORTING ACCOUNTANT In UKRAINE

KPMG UKRAINE

Business center "Senator"

32/2 Moskovska St.

17th floor

01010, Kyiv

Ukraine

Tel.: +380 (44) 490 5507

Fax: +380 (44) 490 5508

E-mail: info@kpmg.ua

Website: http://www.kpmg.com/ua/ru/pages/default.aspx

LAW FIRM TO ENGLISH LAW

LINKLATERS

One Silk Street

London EC2Y 8HQ

Telephone: (44 20) 7456 2000

Fax (44 20) 7456 2222

TO CYPRIOT LAW

STELIOS AMERICANOS

12, Demostheni Severi Av.

Office 601, 6th Floor 1080 Nicosia, Cyprus

Tel.: +357 22 46 55 00

Fax: +357 22 33 85 00

Email: info@americanoslaw.com

Website: http://www.americanoslaw.com

PROPERTY VALUER In UKRAINE

EXPANDIA LLC (formerly CB Richard Ellis LLC) (part of the CBRE affiliate network)

Address: 03038 Kyiv, Mykoly Hrinchenka St., 4 Horizon Park Business Center

Post address: 03038 Kyiv, Mykoly Hrinchenka St., 4 Horizon Park Business Center

Phone number: +38 (044) 3900000

Fax: +38 (044) 3900001