KIEV, UKRAINE-Ukraine investor and developer Dragon-Ukrainian Properties & Development has acquired a 35% stake in Kiev-based retail mall developer Arricano Trading via a new share issue, for $30m in cash.

Arricano will use the proceeds to fund further development of its shopping centers and for debt repayment. Arricano is indirectly owned by Estonian private investor Hillar Teder via Luxembourg-based Expert Capital, which will retain the other 65% stake. Its portfolio includes five shopping center projects with building area of some 4.3 million square feet, 1.4 million square feet currently operational and the rest for delivery in 2011-2013.

Two malls are located here, the 1.2-million-square-foot Sky Mall and the 260,000-square-foot M26; the others in large regional cities are Sun Gallery in Krivoy Rog, City Mall in Zaporozhye and Inter Mall in Simferopol. The second stage of Sky Mall, designed by UK architects Chapman Taylor, opened end-August and it is 93% leased; Sun Gallery and the first stages of InterMall and CityMall are completed. Arricano owns 50% minus one share in Sky Mall with a call option to acquire the rest from its local partners.