Zsar Outlet Village Outlet Centre Feasibility
About the brand
Zsar Outlet Village is a new premium outlet village development in South-Eastern Finland located on the Russian border, 200 km from St. Petersburg, Russia, and 170 km from the Finnish capital Helsinki.
East Finland Real Estate required an assessment of likely trading performance and key catchment statistics to justify the project and support leasing activity.
Evaluate an undeveloped roadside site located in an underpopulated local catchment where a substantial proportion of sales will be drawn from tourists and passing highway trade
Understand how cross border tax differences can create commercial opportunity
Convince sceptical occupier brands of the unusual trading opportunity
WHAT WE DID
Undertook a field based review of full price competition in Helsinki and St Petersburg to understand the competitive positioning opportunity
Used gravity based techniques to estimate the extent and scale of catchment
Reviewed published tourism and border crossing projections to understand the nature of passing trade and the growth in future demand
Identified an ideal tenant mix and target brands and allocated floor space.
Benchmarked the opportunity at Zsar with established outlet centres in terms of population, market capacity, likely turnover and sales density performance
Produced a series of bespoke summary documents for target occupier brands such as Adidas, Nike and Calvin Klein
The scheme is under construction and due to open in 2018
On the basis of Pragma recommendations, additional land has been acquired to facilitate further phases of development.
70 percent of the first phase is pre-let to brands including Armani, Hugo Boss, Le Creuset, Nike, Restamax, Stayer and Sunsolo