MIPIM-2017: New Development for a New City

MARCH 27, 2017
The main theme of this year’s MIPIM was a "New Deal" in the sphere of development, urban development, relationships between the different actors of the market. The world’s development has never been as fast as today. Technological innovations, macroeconomic and social changes force businessmen from all over the world constantly to adapt to the new reality.
"This is especially true for Russia where investors, developers and operators are forced not just to adapt to changes, but independently generate new reality on a daily basis as well," said Gregory Pechersky, the Managing Partner of ADG Group, "However, this volatility makes Russia and Moscow in particular especially attractive place for investment. In the context of the project on the establishment of 39 regional centres, presented by us in Cannes, we had an opportunity to confirm that the interest in Russian projects creating and improving the quality of life of the townspeople is enormous, and it confirms once again the success of the course we have chosen.
Moscow is a perfect example of a metropolis with a high population density, where, as a consequence of the historically implemented policy of expansive development and emphasis on housing, a giant belt of neighbourhoods was formed with poorly developed infrastructure. Now, however, the city authorities have adopted and actively develop a federal programme on decentralization and improvement of cities, and ADG Group keeps up with this strategy. 2.5 million people living within walking distance of the future regional centers, are the target audience for this project, which is being implemented. The goal of the company and the city is to provide Muscovites with a basic set of goods and services, entertainment and educational programmes in the immediate vicinity of the house. In addition, it is very essential the social responsibility of the developer and its willingness to go beyond the construction of the building and to pay more attention to the creation of high-quality urban environment.
That is why the main theme for the business sessions this year have became the changing relationship between investors and the Government with a view to build an appropriate livable environment in the city, in the most densely populated areas. A holistic approach involving primarily the creation of a new quality of life for each resident of the city appears to replace the traditional development.
In this context, the prospects for public-private partnerships in the field of construction of infrastructure facilities are of the particular interest. At the opening Conference of the Russian section of MIPIM, the Deputy Head of the Ministry of Housing & Building and Housing & Utility Infrastructure of the Russian Federation Nikita Stasyshyn announced the Government’s plans for the support of cooperation of developers and authorities in 33 Russian regions: on these sites the infrastructure development will occur at the expense of the State, and the developer will assume the full cost of housing development.
The Deputy Head of the Ministry of Housing & Building emphasized another way of interaction of authorities and companies such as the opportunity to work together on redevelopment of obsolete and worn-out infrastructure, a legacy of the Soviet era such as cinemas, recreation centres, culture and art centers, industrial zones, which appeared in huge numbers in residential areas of any city of the USSR in 60−80s. Highly praising the project on converting these objects into modern regional centers of attraction, saturated with shopping, entertainment and educational infrastructure, proposed by ADG Group, Nikita Stasyshyn proposed to implement this program in the regions upon the completion of works in Moscow.
The "New Deal" in the development supposes totally new formats of interaction with prospective clients of the facilities, both tenants and operators, and end users.
"Now at a very early stage of any development project the needs of its future users step forward. As a progressive developer, it is important and interesting for us not only just to create new items of immovable property, but to create a story about our city, its residents, our shared values as well," said Olga Zakharova, the Managing Director of ADG Group, "The project on establishing a network of regional centers will solve a complex of tasks: it will promote business development, create jobs, provide with the opportunity for personal fulfilment, self-expression and self-organization of urban communities on the basis of combining interests, professions or hobbies."
In this regard, an item on the involvement in Russia of major international players was keenly discussed at MIPIM. Two aspects appear to be the most promising for these investors: megaprojects referred to the integrated development of the territory, supported by the authorities; and well-designed facilities in locations where a dense residential development was formed. In projects such as, for example, in the case of 39 regional centres of ADG Group, the development is to meet the needs of local residents and in close conjunction with local business, which ultimately increases the loyalty of audience to the project and allows you to create a favourable atmosphere for the entrance of major players to the complicated Russian market.
"MIPIM is traditionally considered to be a kind of "school" for the developer — it is here where the main trends in the real estate business are born and discussed. And we were especially pleased to feel ourselves not like pupils but like teachers in this school; the project on the establishment of 39 regional centres was able to surprise and please our potential partners from around the world," said Gregory Pechersky, the Managing Partner of ADG Group, "The future of the development in Moscow belongs to trendsetters who were the first to capture the changing need of the city for a new quality of life, infrastructure, new level. And we can be proud that we are at the forefront of this movement."
Contacts for media:
Mila Artemieva
+7 (916) 484-93-95
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