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Closing the casino can cause to fall commercial real estate market

Jun 29th, 2009 | By admin | Category: Main News

With the entry into force of the law About prohibition of gambling business in Ukraine and the closing of gambling establishments in the commercial real estate market of Ukraine can dramatically increase the number of vacant spaces, which in response to the crisis, and already the demand has dropped. Most shops with slot machines, while their Ukraine there are about 11 thousand rental. As a rule, they were stored on the first floors of buildings and residential buildings, shopping malls, some - in the small architectural forms. Now they will have to leave them.

Overall gambling establishments pay rent on the so-called upper rate, ie without any loyal conditions and benefits. This is the ultimate plategrid pricing for the rental of commercial property, - explained the project manager of All-Ukrainian Center for entrepreneurship Igor Pilipchuk.

According to him, legal gambling parlors with automatic today, there are about 11 thousand in Ukraine. Of these, an absolute majority of the tenants of the owners of gambling establishments have agreed to the postponement of the landlords to pay a monthly rent (from 8 May to 8 June in connection with the suspension of a license by the CMU). The further the situation following the entry into force of the law prohibiting gambling, unpredictable, because, on average, each facility occupied an area 100 sq. m. According to a rough estimate, one-drop in the market - at $ 1 million 100 thousand square meters of orphan area. In this situation, to pass them will be very difficult even for the average rental rates, - he said.

For his part, director of the Ukrainian Trade Guild (UTG) Vitaly Boyko said that if released igrovikami in shopping centers (TC) space will be vacant, the landlord actually lose revenue, but the work of the shopping center is unlikely to be strongly affected. Rooms reserved for the entertainment of the TC, as a rule, stand-alone: they have a separate entrance and clearance of the central flow. However, to expand the entertainment zone and shopping center to change its tenants seriously enough.

It is possible that many owners try to change the profile, move, such as billiards, slot machines and simulators. Yes, and by representatives of gambling argue that the alternative, of course, although it will take quite some time. Another scenario is development - the law prohibiting gambling drive this business in the shadow. The number of illegal trading halls increase sharply. And for this you need to be ready, - warn Vice-President of Ukrainian Association gaming Gregory Pripulsky.

According to him, the owners of the gambling business before the last expected that the President of Ukraine submitted a law to ban gambling on the consideration of the Constitutional Court, but he did not. Now, the owners intend to seek repayment of costs and unpaid taxes. Pripulsky also notes that owners of gambling are prepared to accept any reasonable solution. But do play a zone in some steppe, to make them outside the city - is illogical, - he said.

representative of the Association refers to the negative Russian experience: In Russia, made the play area outside the city, and nobody goes there. The level of confidence in the state eroded, so no normal investor would invest now than a few tens of millions in the gaming area of the city, because apart from the crisis in the country's economy, because there is no guarantee that the Government still have not think of.

According to the Ukrainian Center for business, the largest concentration of gambling parlors to the game machines - in the south of Ukraine, Kiev region, Donetsk, Lviv, Ukraine. Three quarters of lenders who give room gambling establishments are the credit obligations to the banks, - spoken by the center, projecting that the balance of non-payment will regress.

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