Knight Frank, the international consulting company, represented the seller in a land purchase south of Moscow by Russian’s biggest retail company, X5 Retail Group.
X5 bought the 1.88-hectare land plot in the city of Novomoskovsk (Tula Region) from the company TTs Development, and will use it for construction of a store in its new Pyaterochka-Maxi format. The format has been specially designed for smaller Russian cities, with population of 50,000 and more. The economy-class supermarket, with ‘cash and carry’ features, differs from other formats by its simplicity and is oriented to both retail consumers and small wholesale buyers.
Vladislav Nigmatulin, Deputy Director of the Warehouse & Land Department at Knight Frank, said: “The land plot, which X5 Retail Group has bought, is in the very centre of Novomoskovsk and is an ideal location for a supermarket. The district has excellent vehicle access, and fairly high flows of people. The deal confirms commitment of X5 to develop its new stand-alone supermarket format in smaller cities.”
X5 Retail Group N.V. is Russia's largest retailer in terms of sales. The Company was created as a result of a merger between Pyaterochka (soft discounter chain) and Perekrestok (supermarket chain) on 18 May 2006. In June 2008, X5 acquired Karusel hypermarket chain and substantially strengthened its position in hypermarket format.
As of 31 March 2011, X5 had 2,545 Company-managed stores located in Moscow, St. Petersburg and other regions of European Russia, Urals and Ukraine, including 1,472 soft discount stores, 303 supermarkets, 71 hypermarkets, 47 convenience stores and 652 acquired Kopeyka stores (including 45 stores already rebranded as Pyaterochka). As at 31 March 2011, X5’s franchisees operated 690 stores across Russia.
For the full year 2010, net sales totaled USD 11,280 mln, EBITDA reached USD 844 mln, and net profit amounted to USD 271 mln. For the first quarter 2011, net retail sales totaled USD 3,826 mln. X5 Shareholder structure is as follows: Alfa Group – 47.9%, founders of Pyaterochka – 19.9%, X5 Management – 1.8%, treasury shares – 0.1%, free float – 30.3%.