News

Saturday, 04.02.2012

An agriculture market near Komsomolskoe Shosse in Nizhniy Novgorod was open y OOO trading organization Nizhegorodets last Saturday. According to the local Government, the 4.9 hectare market consists of two roofed-in pavilions to sell food and goods as well as street stalls, a parking lot, warehouses etc. The amount of investment is withheld though Nizhegorodets did mention that based on the rental rate of about 2.5k rubles per one square meter in the roofed-in pavilions and 300 rubles per one square meter of street space, the investments will pay back in five years.

Kommersant reports, citing Maxim Klyaguin, an analyst with Finam Management that normally investments for such projects make about $50m, roughly $1k per 1sq. m.

The plot was rented by the Group for 49 years back in 2007 to build a car dealership and car shop. The construction was to start in March 2007 and total amount of investments was estimated at 1.5 billion rubles. Though, according to General Manager of Nizhegorodets, Alexander Goikhman, because of the crisis, the plans were dropped: “Car sales plummeted 80%. A market will generate more cash under the given circumstances.” Regional authorities supported the change of the concept and consider the new market as a ground to implement the program to support local agricultural producers carried out under the slogan “Buy what is made in Nizhny Novgorod”.