Co-owner of the ATB chain Gennady Butkevych may buy the company that owns the Zhytomyr TSUM. The Antimonopoly Committee has already granted the appropriate permission to Power Place LLC. CEO BGV Group Management Oleksandr Naumyk confirmed to Forbes that the company is studying the issue of purchasing the TSUM premises in Zhytomyr.

Such deals require mandatory legal and technical due diligence, including asset valuation. Only after that is a final decision on the acquisition possible, – says Naumyk. UTG Director Evgenia Loktionova adds that the TSUM has absolutely no inclusiveness, so reconstruction is needed there.

The group is already testing formats that can be applied in SCs; last year, BGV Development began developing a network of district and suburban shopping centers in the region. In April, the pilot “Zhyto” SC was launched, with a total area of over 4,100 sq. m.

The total area of the Zhytomyr Central Department Store is 4,570 sq. m. It may become the company’s third development project in the city.

According to Oleksandr Naumyk, the Zhytomyr region is a focus region for the developer; since 2015, Butkevych’s group has invested over UAH 3.5 billion in local projects.

How can Central Department Store change?

The three-story building of the Central Department Store was built in 1962 according to a typical Soviet-era project, now the TSUM offers commercial and office space for rent.

On the city’s real estate rental website, small premises with an area of ​​6 to 60 sq. m are mostly rented out. Among the tenants: the warehouse-store Grand Toys, Appleten, points of sale of beads, costume jewelry and clothing.

Naumyk noted that the building, which is already over 60 years old, requires capital investments and a modern approach to renovation. We are studying possible scenarios for using the facility, – he adds. We cannot name the figures: this is sensitive information at the moment, – says Naumyk.

But Mykola Chumak, founder of the IDNT company, which designs point-of-sale formats for retailers, is not sure that the Zhytomyr TSUM needs to be reconceptualized. In his opinion, it is more realistic that BGV can turn the Central Department Store into a business center.