Lenta Ltd Contracts signed for 36 supermarkets in Moscow (6029U)
January 19 2017 - 4:09AM
UK Regulatory
TIDMLNTR TIDMLNTA
RNS Number : 6029U
Lenta Ltd
19 January 2017
ADG Group and Lenta sign lease contracts for 36 supermarkets in
Moscow
St. Petersburg, Russia, 19 January, 2017 - Lenta, (LSE,
MOEX:LNTA) one of the largest retail chains in Russia, has signed
lease contracts with Edisonenergo LLC, part of the ADG Group real
estate development company, who are building a network of
neighborhood shopping and entertainment centers across Moscow's
residential areas.
The agreements cover 36 locations for future Lenta supermarkets
in Moscow shopping and entertainment centers currently under
construction. All the centers are to be reconstructed on the sites
of former Moscow cinemas. Each center will have an individual
architectural style while delivering the concept of the project as
a whole.
Attractively located in the middle of high traffic residential
areas, the neighborhood shopping and entertainment centers are
intended to meet the daily shopping and leisure needs of local
residents. Each center will be a multi-functional space providing a
wide range of consumer outlets, entertainment, and essential
services, including social, cultural, and educational facilities
which will draw citizens to visit them frequently.
A total of around 47,000 square meters will be leased by Lenta
under ruble denominated 15 year contracts. All the rented areas
conform to the specifications of Lenta's 'supermarket' format, with
each store's total space varying from 740 sq m to 1,800 sq m.
The first supermarkets are scheduled to start operations in the
end of 2018 with the remainder opening in 2019.
Jan Dunning, CEO of Lenta said: "Customer reaction to Lenta's
supermarket concept has been very positive since the first store
was opened in Moscow in 2013 and we are pleased with the
performance of our 36 existing stores in the city. We are
accelerating growth in this format and this important agreement
with ADG supports our strategy by adding a further 36 stores in
attractive high traffic sites. We have a strong pipeline and will
continue to add stores through our normal development process,
giving us the potential to reach well over 100 supermarkets in
Moscow within the next three years or so."
Grigory Pechersky, Managing Director of ADG Group said: "We are
offering our business partner an efficient and scalable way to
expand its network across Moscow. The main feature of our project
is that we put hospitality and customer service before concrete and
square footage aiming to become the leader of the local district
neighborhood.
We are confident that people living close to our center will be
visiting it two or three times a week. Moreover, the exceptionally
favorable locations and the use of advanced technologies and
flexible formats make us uniquely positioned to be the first in the
market to offer access to a loyal customer base of 2.5 million
people residing within 15 minutes walking distance. We will provide
not just a shopping experience venue - we will become an integral
part of our customers' lives."
About Lenta
Lenta is the largest hypermarket chain in Russia (in terms of
selling space) and the country's fifth largest retail chain (in
terms of 2015 sales). The Company was founded in 1993 in St.
Petersburg. Lenta operates 190 hypermarkets in 77 cities across
Russia and 50 supermarkets in Moscow, St. Petersburg and the
Central region with a total of approximately 1,146,542 sq m of
selling space. The average Lenta hypermarket store has selling
space of approximately 5,800 sq m. The average Lenta supermarket
store has selling space of approximately 1,000 sq m. The Company
operates seven owned distribution centres.
The Company's price-led hypermarket formats are differentiated
in terms of their promotion and pricing strategies as well as their
local product assortment. The Company employed approximately 34,134
people as of 30 June 2016.
The Company's management team combines a mix of local knowledge
and international expertise coupled with extensive operational
experience in Russia. Lenta's largest shareholders include TPG
Capital and the European Bank for Reconstruction and Development,
both of which are committed to maintaining high standards of
corporate governance. Lenta is listed on the London Stock Exchange
and on the Moscow Exchange and trades under the ticker: 'LNTA'.
A brief video summary on Lenta's business and its Big Data
initiative can be seen here.
For further information please visit www.lentainvestor.com, or
contact:
Lenta
Anna Meleshina, FTI Consulting
Public Relations & Anton Karpov & Victoria
Government Affairs Afonina
Director el:+7 495 795 06 23
Tel: +7 812 363 28 E-mail: lenta@FTIconsulting.com
53
E-mail: anna.meleshina@lenta.com
Anastasia Kuznetsova,
Corporate Communications
Manager
el:+7 (812) 336 39
97
E-mail: a.kuznetsova@lenta.com
About ADG Group
ADG Group is a pioneering urban developer whose mission is to
better serve the new expectations of modern Moscow. The company was
founded in 2003 with the single-minded vision of expanding the
major regional centres of Russia. By 2009, ADG Group's portfolio of
projects covered over 1 million square metres with successfully
implemented projects right across the country, from Kaliningrad to
Novosibirsk.
In December 2014 ADG Group won the Moscow Government auction for
purchasing 39 Moscow obsolete movie theaters. Rebuilding work is
starting in winter 2017, and the opening of the first Neighborhood
centers is planned for 2018. The project mission is to restore in
Moscow residential areas spaces for meeting with families and
friends, shopping and entertainment.
The total GBA of 39 objects is 470,000 sq. m. After complete
Neighborhood centers commissioning in 2019 ADG Group will become
the Moscow's largest commercial real estate owner by number of
objects.
For further information about ADG Group please visit
www.adggroup.ru, or contact:
Dmitriy Yurtsvayg
Marketing Director
Tel: +7 (985) 920 29 96
E-mail: d.yurtsvayg@adggroup.ru
This information is provided by RNS
The company news service from the London Stock Exchange
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