Maksim Levchenko, managing partner of FORTGROUP, on renovating the Moscow shopping center Europolis
Maksim Levchenko, managing partner of FORTGROUP, has told MarketMedia how he is redeveloping the Moscow shopping center Europolis over an area of 240 thous. sq. m, all while living on its roof in a house on wheels.
There is a green yard enclosed by a low fence, in the center of which a 7-meter trailer has been installed. A walnut tree has been placed near the gate, with several vegetable patches around it, where mint, lemongrass, rosemary grow in summer. Near the house on wheels, under a tent, there is a weight bench and a punching bag. Far in the corner of the yard, you’ll find a newly built toilet of planed wood, a type of outhouse, with a heart on it. It would seem a traditional rural idyll, except that it’s on the roof of the shopping mall, which is one the top 5 largest in Russia, and that it’s a place of residence for Maksim Levchenko, managing partner of FORTGROUP, a company that manages 1 million sq. m of commercial real estate in Moscow and St. Petersburg. MarketMedia investigates why Maksim Levchenko has made his home on the roof.
The gastronomy market CITY FOOD in the Moscow shopping center Europolis (in Rostokino) which is currently undergoing renovation, has welcomed its first visitors. The whole food area will occupy 12 thous. sq. m, being larger than the area of the gastronomy market Depo.Moscow (11 thous. sq. m) launched in the capital this spring. Up till now, only a section of where the food court is located has been opened as part of Europolis Rostokino. It is about 5 thous. sq. m. Here you can find famous chains, including Cofix, SushiEd, KroshkaKartoshka, BURGER KING, KFC, McDonald’s, Franklins’ Burger, Ciao Pizza, as well as others, including those that are growing in popularity, such as the Thai cuisine restaurant Tasty Thai, Oriental style fast food restaurant Livan House, Ecook, Greek Street, etc.
The part of the CITY FOOD where haute cuisine gastronomy concepts are to be launched is still under renovation. But it is expected to be completed within a few months. 40 operators will open for business in a food market-style layout. The same area under the same name has been operating since this summer at the shopping center City Mall of St. Petersburg. The designs of both food markets exhibit calm grey and beige colors, and both have plenty of greenery, which, together with the layout of tables, creates a comfortable atmosphere for guests. As Maksim Levchenko recalls, it was about ten years ago when he first saw how these sorts of food areas were arranged by big shopping malls in London. “Their owners were looking for small national cuisine cafes, and if their cuisine was tasty, they gave them a boost to meet a required level and invited them to join the food area,” says Maksim Levchenko. “At present, Russia is also seeing growth in the dining out sector. Such communal concepts have been developing, when all are together, when there are no barriers between restaurants, when a customer perceives it as a cheaper option, while, in fact, it might be quite the opposite. But a person therefore feels free, in that they’re not under pressure of mandatory rituals or sorts of requirements, etc. Such a feeling of freedom and openness shall become a key feature of the gastronomy market”.
Renovation Project of SC Europolis Rostokino
It has turned out easier to gather various gastronomy concepts under one roof of a shopping mall in Moscow than in St. Petersburg. In the city on the Neva, it took a long time persuading the restaurateurs, who were completely unable to imagine how it would be in a shopping mall, in the bedroom suburbs, even if it is one of the most visited, that they might be side by side with someone else, having no clear boundaries of their own area, no hostess, and operating in a communal mode. As Maksim Levchenko recalls, there was a kind of snobbery on their part, as it was not a restaurateur, but a developer, who suggested the concept to them. Nonetheless, the gastronomy market has been launched, and today, those who have not joined the CITY FOOD of St. Petersburg are seemingly in search for workarounds to enter it, Maksim Levchenko points out. In Moscow, it turned out that the restaurateurs were easier to persuade, probably because the format of gastronomy markets in the capital is developing intensively, suggests the speaker.
The area intended for the gastronomy market in Europolis Rostokino was being developed essentially from scratch. The renovation of the shopping center, the former Golden Babylon Rostokino, has been underway since last summer. The building itself was constructed in 2009 by the developer company Patero and was owned by the Austrian company Immofinanz until 2017. Lateron, that shopping center, together with four others owned by Immofinanz — HUDSON on Kashirsky highway, Fifth Avenue on Marshall Biryuzov Street and two more Golden Babylons in Otradnoye and Yasenevo — were taken under the management of a developer from St. Petersburg, FORTGROUP. The renovation of shopping centers started almost immediately; first in the queue was Golden Babylon Rostokino, which was renamed Europolis. The mall, which has an area of 240 thous. sq. m, had been outdated for quite a long time by that point and needed renovating. That task was assigned to the architectural office, which had just been established at the company. According to what Maksim Levchenko said in May this year during an interview with MarketMedia, they decided to establish their own architectural department, AD for short, as redevelopment demands continuous reworking, which drives third party contractors mad. They were in need of stronger specialists. The AD was headed by a Spanish architect, so there are AD offices both in Madrid and in Moscow. When the works started in Rostokino, the task of the architects was to not only replace the worn out materials with modern ones — which, of course, is important — but to rethink the layout of the shopping center. This involved changing the zoning and the array of retailers, applying their new requirements to the renovation of stores, and changing the logistics process. “It was not a simple renovation, but a radical reform,” says Maksim Levchenko.
The first thing they attempted was the most complex and labor-intensive part: the creation of the food area. To locate all the operators, many things needed to be reworked. Maksim Levchenko is aware of each and every detail as he controls the construction process, practically on a day-to-day basis. He has even equipped a temporary shelter in the roof parking area, which he calls El Rancho. Within a small square of a man-made green lawn enclosed by a low fence, they have installed a trailer, a couple of pieces of exercise equipment, a hanging armchair and a bar counter, where the head of FORTGROUP welcomes his guests with coffee and stronger beverages. And after Maksim told others about his new house on the roof by posting a photo on social networks, there has been a fast growing number of people willing to see how he has equipped a 200 sq. m space on the roof of a shopping mall, to inspect the ins and outs of the bar, and to try out the dumbbells for themselves...
Maksim Levchenko, Managing Partner of FORTGROUP, beside El Rancho on the roof of Europolis Rostokino. MM Archive
Maksim Levchenko is sure that when it comes to a shopping mall, the most important thing is to think up everything and then to do it. That’s why he takes part in each process, while often pressing to rework things, and sometimes getting down to work himself. For example, before the opening of the food area, he could be seen helping the workers to dispose of construction materials, ensuring that everything is done well before the first visitors come. “If everything is done well at the opening phase, then managing a finished facility, where every detail is thought over, is a simple daily task. And our team is perfectly capable of managing it. But before that moment comes, everything should be done flawlessly,” Maksim Levchenko explains with regard to his constant presence on the site.
In the center of the food area, the architects used a “second light” method. In this part of the food market, the dominant focus has been drawn to an art object in the form of an evening dress silhouette turned upside down, which has been placed under a roof of glass. During the day, the component geometric figures of the sculpture create a play of light, and, when it’s dark outside, the art object serves as a chandelier: it is illuminated by a sidelight, which is further reflected by its mirrored surface. Under it, a Bouche bakery is set to be located on the ground floor. It will occupy approximately 250 sq. m; boasting an open kitchen with a large number of seats planned, as well as master classes. For this brand, it is a new experience both in terms of the size of bakery and the functioning of an open kitchen.
Save the customer the trouble
Aside from the gastronomy market, as of today, part of the Europolis Rostokino shopping galleries (along Serebryakov proezd, Medvedkovskoye highway) has been renewed. Having removed the elements of previous design, we have managed to increase the height of the ceilings in the stores, which, as a result, are bigger and let more light in. STOCKMANN, UNIQLO, ZARA, H&M and other stores are already up and running in a renovated format.
Renovation Project of SC Europolis Rostokino
The general idea of the changes is to make the shopping center gigantic, or 240 thous. sq. m, on a human scale. Maksim Levchenko explains what it means taking the example of museums. “You can spend 1.5–2 hours maximum in a museum, and then you get too tired. A kind of satiation takes place. You may also feel fed up with a shopping mall when you walk along the never ending shopping corridors, when you are confronted with excessive interior design details, low ceilings, etc. A shopping mall, like any other huge area, makes a person feel like he is a grain of sand, sapping his energy. Instead, we want a shopping mall to fill people with energy and give them new experiences. For it to be humane: simple, comfortable and cozy. All at once — the entrance, galleries and large windows letting in lots of light — shall serve this purpose. It is for that very reason that the design of the shopping center itself is simple, I would say, minimalistic – for it to not be depressive. And as to the mood, the impressions should be given by the stores, their large spaces, the atmosphere they create. And the customers themselves will choose the world of new emotions they want to plunge into”.
Renovation of SC Europolis Rostokino
With the launch of the renovation, the pool of tenants in Europolis Rostokino has changed significantly. Whereas previously, in Maksim Levchenko’s words, the structure of tenants was chaotic — among those who had a concept, there were also the tenants seeking to simply fill in the space — whereas now the structure is logically built. The space is zoned correctly for the customers to be able to immediately read what is located where; therefore, some brands are being transferred to new places, and some contracts need to be terminated. The center is huge; people are required to understand how everything is arranged here for them to have a good experience, not to lose their nerve, in the developer’s opinion.
With that being said, Maksim Levchenko is sure that it is not shopping that should prevail, but the overall impression of the experience. It’s good that the stores understand it, being gradually transformed into the gorgeous showrooms — by its design, interior, spaces — giving the customers new emotions. “The shopping center, which was built 10–15 years ago, is already terribly outdated. Patching it up won’t save it, though it would be possible to do it that way for a while; but to be up-to-date, we must rework everything structurally,” the head of FORTGROUP says.
A garden on the roof
All the renovation work in the company is due to be completed in the next few years. Some more time will be needed for landscaping and finishing the area surrounding the shopping center. As an example: Maksim Levchenko has an idea on how the area of the uncared-for Beskudnikovsky railway line, having been closed as early as in the late 1980s, which passes nearby Europolis Rostokino, could be renovated. By the way, probably the last evidence on how the said railway line worked may be seen in the 1981 movie ‘Love and Lies’ — it is that very place where some of the scenes from the movie takes place.
Renovation of SC Europolis Rostokino
As of today, 500 m of the railway are not cared for. Maksim Levchenko thinks that, if an agreement is reached with RZD, it may be transformed into a green alley stretching from the future second entrance, on Serebryakov proezd side, under the arch of the shopping center to the nearest MCR station. Moreover, there is no need to dismantle the track itself. Rather it may be the key element of the new promenade. It may be something similar to The High Line park in New York, which was also constructed on the former railroad, but an elevated one above the ground, or something akin to the garden Promenade plantée in Paris, a part of which is located beneath the railroad track, having become an oasis for local residents in a hectic city environment. Maksim Levchenko does not intend to copy any of the said projects; the main similarity that may be retained is that the green alley could become a new public space. Together with the renovated shopping center, it can give a boost to a new phase of development of the region, where Europolis Rostokino is located.“Up till now, both the region as a whole and the shopping center have had an unfavorable image: an industrial area, an uncared-for thoroughfare, where one has nothing to do,” Levchenko says. “But it may be transformed into a new center of attraction. Yes, we will need time and money for that, but this place has a great potential: a new residential area is being constructed nearby; three underground stations are located in a close proximity; Yaroslavsky highway is passable for traffic; Prospekt Mira, one of the major transport corridors of the city, is nearby. It’s a huge hub.”
It’s not that easy to change the image of the region, but Maksim Levchenko is sure that it may be accomplished if people are offered an interesting, modern and comfortable space. Once they have it, no marketing is required: people just come and see everything themselves, and then they share their impression with others, he says with conviction.
It’s quite possible that a roof parking area of the shopping mall will also contribute to the overall customer impression. It’s rarely used by the guests of the mall, but, in Maksim Levchenko’s opinion, those 30 thous. sq. m could be transformed into “something unusual”. “That territory should become a place where greenery gradually takes over the industrial architecture of the capital. And, on the contrary, where the architecture of the suburbs suddenly emerges from the thickets. That way, nobody beats anybody. Those are the component parts of the whole,” argues Levchenko. One can get onto the roof by using the metal staircase. According to Maksim Levchenko, it's going to be a kind of bridge between the food hall and the park on the roof. “Entering a new space should be a complete surprise for the visitors who have never been upstairs on the roof before. Perhaps we’ll create a tiny vestibule, where a small door will lead to a green thicket, and where you can hide from the hustle and bustle of city life,” Maksim continues. “In the park, there should be some silhouettes of concrete; unfinished buildings without roofs or windows, some columns. To give the impression that there are ruins around you that have been absorbed by nature. Thickets inside concrete forms can also be an installation and an experiment. Nobody is stopping us from having food festivals and open-air concerts all year round, or from inviting artists and architects to work on new bushes on the roof. The roofing in Europolis Rostokino can function with a permissible load of half a ton per square meter, which is a significant amount, and it has a drainage. All this should significantly simplify the task of creating a green space, since capital construction is not required.”
Though it’s still just an idea, it seems that Maksim already knows who he could talk to about its implementation. But he gives no names or deadlines. Nor does he make any mention of the amount required to renovate the shopping mall. “The renovation of a shopping mall, and one as big as in Rostokino, is a complex project. Both to manage and to allocate the funds. The funds are difficult to precalculate,” Maksim Levchenko explains. “The market is changing quickly. Some tenants leave, others come; and they come with their own ideas that need to be integrated into what is already being transformed. My single Europolis Rostokino project comprises over 400 various projects, each one having its own requirements. Many things need to be reworked as we go along. In construction, it is easier to calculate everything from zero. For example, I want to spend a certain amount per 1 sq. m — that’s how the work is planned. Another thing is embarking on the renovation. Say you pull the wallpaper from the wall and find something you weren’t expecting. Or an international brand decides to join you, and they ask for what they need, and we get down to work right away. Later on, after several months, they say to you: “We’ve had a rethink and are going to change everything. It’s a permanent amendment to the planning.”
As a result of the changes, the number of visitors of the shopping center may increase, in Maksim Levchenko’s words, by 30–40%. Bearing in mind that at present, the number of visitors to the mall is about 1.5 million people per month, it could turn out to welcome over 25 million of guests per year.
