“Parade Quarter” Magazine

The Industrial Park “Perspective”
project implementation

On July 22, 2009 presentation of the Industrial Park “Perspective” took place.  What has taken place in the past six months?

The project already is at the implementation stage. Currently we are carrying out negotiations with interested parties - our potential customers, who also act as investors for the project. Initially we had planned to sell land plots based on a preliminary agreement, but later we discarded the idea after understanding that customers are not ready for that psychologically. Construction of object in the industrial park is to start in April 2010 - by that time we intend to complete the land marking procedure, receive cadastre passports for the plots, and certificates of title. Therefore, we shall enter not into preliminary agreements but into sales agreements, and residents of the industrial area will possess certificates of title for their land plots. It is rather important, because nowadays no one else is offering similar conditions: industrial lands form the most expensive land category, and no one is in a hurry to transfer their land in this category if their land plot, for example, belongs to agricultural lands, for which tax payments are significantly lower. And we undertake all those expenses.
For 2010 we have allocated funds for construction of a road to access land plots and installing a gas pipeline - land plots will be sold with connected utilities. At the moment it is simply impossible to carry out construction due to weather conditions, so we are engages in preparation of the design of a road, acquiring required documents and permits.

In April or May, along with construction of a road, we are to commence construction of a logistical complex for KDM (furniture components) and Kedr LLC - paperwork for construction is already being prepared. Currently, negotiations are underway with Angstrem Furniture Company for construction of a complex with the area over 60,000 sq. m., an offer for a confectionery plant to be built in Voronezh is being prepared. Using expert assistants we have prepared a set of documents for foreign investors, who, I believe, will also be interested in our offer.
How is the Industrial Park “Perspective” different from other similar projects?

Unlike the widespread global practice, when plots at most similar parks are offered on lease in order to secure dividends for their owners, we sell land plots in the Industrial Park “Perspective”. I point it out once again that those land plots have already passed engineering preparation, which will significantly reduce the customers’ infrastructure costs. On our part it has been a conscious step: we understand that due to the crisis the situation at the market has evolved, and we need to acknowledge reality by forming conditions advantageous for customers. Therefore, we undertake a finished product and undertake the entire responsibility for managing the entire project, which leaves the participants free to use services of our managing company of enter in direct agreements with service providers - the gas supply company, etc. 
Sometimes we are told: “You know, your land is not the cheapest one”. But you not only buy the land from us - you purchase participation in the completely prepared and deep-laid project, where we handle all implementation risks. And if you speak about the cost of the finished product, it is not like you would buy a car part by part! You buy it as a complete set, and if you buy components separately and assemble it (in case of a land plot - acquire all permits, build a road, install utilities, etc.), it would turn out much more expensive!

We have talked to various consultants, and all of them are of the same opinion - our format (an industrial park for medium-size and small production facilities with plot sizes starting from 5000 sq. m.) in high demand without fail. Currently, potential investors prefer to become owners of the land, because in reality even thought a lessee in theory possesses the priority right of redemption of the land plot, in practice it does not happen quite that way, especially where less significant market players are concerned.
What other advantages will residents of the Industrial Park “Perspective" receive?

The plot is located at the distance of 10 km from the federal highway M4 “Don”. The project is being implemented in a civilized manner, which in itself is not truly typical for Russia in general and the Central Black Earth Belt in particular: we adhere to all requirements for execution of approval documents, all sanitary requirements, etc. Another important aspect - the image component. It is not anyone’s secret that many businessmen pay attention to the business’s location - this is why prestigious offices are in demand even during a crisis. When answering this demand, we create every condition for making our residents proud to show off their goods.
How will the proximity of the Industrial Park “Perspective” influence the closest territories?
Our interests will in no way conflict with interests of the nearby communities. Based on our development plan, only environmentally friendly types of production can be placed in the Industrial Park “Perspective”; for large-scale toxic production facilities (for example, chemical) other places are allocated within the region. The territory of Babyakovo Village Community will be developing around our industrial park, and we must not interfere with it; therefore, the design stipulates closing outer limits of the industrial park and arranging the general security system. At the same time, such geographical proximity of the Industrial Park “Perspective” to residential communities will permit creating additional working places for their inhabitants, and will ensure inflow of the labor force for our residents. 

When, in your estimation, will the first companies be able to commence their operations in the Industrial Park “Perspective”?
Initially, out project stated that the object’s commissioning term was a year from the ground up, turnkey. This means that in May 2011 the logistical complex will start working at the park.
Who will perform construction of facilities at the industrial park?

Investors will not need to waste their time on studying the local construction market - we are going to offer several optimal variants. Partners we recommend are “Bristol-Center” Group of Companies (electric power supply, construction, engineering), CJSC SMUR Firm (construction and finishing works), CJSC "Quant-telecom" (telecommunication systems), VSMO (treatment facilities, heavy water equipment), and Gasspetsstroy.

February 2010