The Ulaanbaatar City Council has decided to build a trade and service center and underground shopping center just south of State Department Store.
An area of 9,940 square meters, stretching from State Department Store to Seoul Street in front of the Mongolian National Circus,will be excavated according to the city’s plans. The proposed development includes an underground shopping center with beauty salons, clothing stores, an arcade, restaurants, coffee shops, and other service businesses underground.
Above ground plans include a trade and service center in the shape of a pyramid,which will be built right across the street from State Department Store. The four-story building will cover an area of 6,640 square meters. It will be powered with solar energy only, according to the Ulaanbaatar City Council. The remaining land above ground will become a renovated public rest area.
The city council says that after the development work is complete, the two lanes of B.Tserendorj Street will be closed on weekends for the comfort of residents.
Construction work for the project is expected to begin later this year and be complete in two years. The Ulaanbaatar City Council estimates that a total of 20.1 billion MNT will be spent on the construction work, with 15.9 billion MNT spent on the underground facility, 1.8 billion MNT for the pyramid structure, and 2.4 billion MNT on pedestrian crossings and landscaping. The project will reportedly be carried out by a private company under build-use-transfer terms.
Preliminary estimates from the City Council suggest that the annual revenue from the facility will reach 3.8 billion MNT, and the annual expenditure will be 1.2 billion MNT once operations stabilize.