Concorde Capital and Smart Holding Agree on Partnership Terms to Manage and Develop Shopping Centres

08.04.2021

Concorde Capital and Smart Holding have come to an agreement on partnership conditions for the management and development of the shopping centres, which were previously acquired by Madera Development LLC at an open auction through Prozorro system.

Smart Holding group includes the commercial real estate operator East Solution Group (ESG), which up until the time of reaching this agreement had managed a chain of shopping centres in the eastern regions of Ukraine. The established client base of ESG premises’ tenants includes hundreds of contractors. Cooperation with the largest retail operators in Ukraine, such as Zolotoy Vek, Lotos, EVA, Foxtrot, Brocard, Silpo, Comfy, confirms that the retail space is managed in accordance with the best standards. ESG is ready to bring in its operational expertise and well-established business ties and contacts to the partnership.

This strategic partnership provides for the transfer of seven shopping centres in Zaporizhzhya, Poltava and Donetsk regions to ESG’s management, which will offer additional competitive advantages for the entire chain and will make it possible to achieve optimal conditions for cooperation with contractors.

For Concorde Capital, this agreement will reduce the risks associated with the operational management, while ESG, in turn, will be able to offer more retail space to its clients on terms that are more favourable. Each of the partners will receive additional value for the capital invested. Many shopping centres, especially in smaller towns, are clusters of business activity. Their stable operation will be the key to increasing revenues to local budgets and increasing employment in the region.