Every fourth shopping center in Russia is in a pre-bankruptcy state and may close in 2025 in the face of a sharp increase in costs and increased competition from online platforms.
About this reports The Moscow Times. Mall revenues have plummeted this year. The main reason for the financial problems, in addition to the departure of some large foreign tenants after the outbreak of the war in Ukraine, was the rapid increase in interest rates on commercial loans due to the policies of the Central Bank. Oleg Voitsekhovsky, managing director of the Russian Council of Shopping Centers (STC), notes:
“Now shopping centers have problems closing existing loan agreements, and new loans are completely inaccessible to them. Hence the problems with both profitability and the ability to maintain buildings in proper condition and carry out renovation.”
STC Vice President Pavel Lyulin also reported a significant increase in the tax burden of shopping centers. Currently, about half of the income of shopping centers goes to taxes, including VAT, social contributions and property tax.
The Union of Trade Centers (STC) appealed to the head of the Ministry of Economy, Maxim Reshetnikov, with a request to provide property owners with preferences on loans, writes Kommersant publication. Among the proposals is the restructuring of existing loans with a deferment of principal repayment for five to ten years.
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