Within the framework of an agreement between the two countries, famous Turkish brands will be displayed at the center whose construction started two years ago. The construction is almost completed and the marketing of the offices as well as the stores have started at the center located in a 40,000-square-meter closed area. Two stories are auto parks, four are shopping centers, and the other four are office showrooms. There will be 55 stores, cafés, fast-food centers, restaurants and a six-salon cinema theater in the center.
The Turkish Trade Center in Moscow is for entrepreneurs who are interested in entering the 143-million populated Russian market, grow and and remain permanently in this market. It will also provide support services for small and medium-scale businesses (KOBI). For this purpose, a Turkish Trade Office will be established on the fourth floor, in a 500-square-meter area. In the first phase, 10 personnel will be working at the office, and for a reasonable price, project custom and logistic, investment, legal and financial consultancy services will be provided for KOBIs. Russian entrepreneurs who are interested in doing business in Turkey, will also benefit from these services.
The center is located in the Zamoskvorechie neighborhood, famous for its historical and cultural structures, which is a five-minute walk from the Red Square. Two buildings belonging to the center are historical ones and their restorations were the first to be done. Just 200 meters away from the metro, the construction of the center is expected to be completed in late March and open in May. The project's owner is TOBTIM Inc., founded with equal partnership by TOBB and TIM. Since TIM does not contribute to capital increase, TOBB for now owns 99 percent of the company. The investment cost is US$57 million and TOBB provided US$56 million. It is expected that a return on the investment cost will be realized within five years with revenues from leases. When considered together with the supermarket and the cinema, the average price for leasing at the center will be US$800 per square meter.
Renowned brands take their places
Some brands such as Goldas, Sise Cam, Colin's, Aslanli, Finansbank, U.S. Polo, Damat and Mavi have reserved their lots at the center. Ramstore, a subsidiary of the Koc Holding, which has become the number one market chain in Russia, has reserved zero level. McDonald's (USA) and Eldorado (Russia) are among the companies that have already made lots of reservations.
TOBB President Rifat Hisarciklioglu, stating that their main goal is to assist nearly 50,000 KOBIs to open up to the Russian market, says: "Russia is such an enormous market with both a registered and an unregistered economy. Turkish entrepreneurs are familiar with this kind of markets. That's why, they have a high chance." Hisarciklioglu says that Turkish companies will have discounts on office places at the center. According to the president, a wholesale complex will be the next after this.
TOBTIM CEO Halim Mete states that the project is the first exemplary project developed by Turkey, and if it is successful, openings to some other countries would be considered.
TOBTIM General Manager Ali Uzuner says the Center resembles Akmerkez in Istanbul and notes that the building, a would-be prospective modern business and shopping center, would contribute greatly in promoting the 'Made in Turkey' image.
Turkish ambassador to Moscow, Kurtulus Taskent, says the project will pave the way for Turkish firms to do business in Russia and will also make their jobs easier.
It is observed that investment opportunities are getting better in Russia and the liberal economy is becoming institutionalized. Undoubtedly, the first eye-catcher on this subject is Moscow. A city of 10 million people, it resembles of a country by itself, and happens to attract a US$4-billion foreign capital each year. The income per capita in the city has risen to the US$8,000 level, with 85 percent of this being disposable income. Thirty-seven percent of the overall Russian trade is realized here.
Russia is a country with almost a US$50-billion foreign trade surplus and this money mostly returns to Moscow. For this reason, nearly every company with links abroad has an eye on Moscow. However, many Turkish brands that could not handle their rivals in Europe have defeated them in the Moscow market. For example, in the construction sector, not only the Russians but also third country companies prefer Turkish construction companies. In textile, read-to-wear clothes, leather, marketing, glass-works and even in electronics, the performances are great. The image of the Turkish brand of the previous years has gradually disappeared.
Many Turkish businessmen who reside in Russia want trade to be improved through normal ways, by putting aside the suitcase economy, and say that Russians are ready for this too. One of the advocates of that is Russian-Turkish Businessmen's Union President Ali Ihsan Akiskaoglu. Emphasizing that trade with Russia needs to be improved before trade with the U.S. and the European Union (EU), Akiskaoglu says, 'When you create richness both you and your neighbor win.'
January 1, 2004
