Deere & Company to lease 45,000 m² of Giffels South Gate Industrial Park (RU)

Giffels Management Russia has reached an anchor leasing agreement with Deere & Company for 45,000 m² - or over 60% - of the 75,000 m² Phase 1 of Giffels South Gate Industrial Park. John Deere will manufacture a broad range of agricultural, construction and forestry equipment and locate its nation-wide parts distribution center at the Giffels project. All arrangements were approved by the Deere & Company Board of Directors in Moline, Illinois.

Giffels South Gate Industrial Park is the flagship project of Giffels Management Russia. The total project area is 104 hectares which has all utilities and is permitted for the construction in phases of over 530,000m2. Phase 1 totaling 75,000 m² has been completed and will be commissioned in September 2009. Located in proximity to the Domodedovo International Airport at the intersection of M-4 and A-107, the project allows efficient service for both Moscow and regional Russian marketplaces. The scale and infrastructure of the project allow Giffels to accommodate a variety of logistics and manufacturing requirements at the project.

John Deere will manufacture a broad range of John Deere products, including tractors and harvesting equipment, as well as construction and forestry products at the project. In addition, John Deere will operate a national distribution center to support its parts and after-sales service to customers. In order to meet John Deere's requirements, the project had to comply with a diverse range of technical requirements, allow for the availability of increased power supply, and be well located to provide for effective nationwide logistics. Lastly, the developer had to be capable of meeting John Deere's requirements in terms of tailoring the facility and obtaining the approvals required for a new manufacturing facility.

"After careful study of the Russian real estate market John Deere has selected Giffels as its logistics infrastructure partner for the next phase of its expansion into the Russian marketplace. As part of its decision making process, John Deere engaged in very detailed due diligence of all aspects of our site, our business and our management team's capabilities. We are very pleased with John Deere's selection of Giffels and the Giffels South Gate Industrial Park and look forward to providing John Deere a world class solution." said Christopher Van Riet, Managing Director of Giffels Management Russia.

"Russia will be a major contributor to meeting the world's future needs for food and forestry products," said Samuel R. Allen, president and chief executive officer. "John Deere's products and solutions can greatly improve agricultural and forestry productivity through the use of advanced technology. Therefore, our investment in this new facility helps Deere prepare to significantly contribute to the Russian government's vision for expanding exports from Russia in these important sectors."
"We are pleased about John Deere's choice of Giffels South Gate Industrial Park for their project as such choice by John Deere is a confirmation of our vision of providing transparent, flexible industrial real-estate solutions to corporate leaders in Russia." Said Van Riet.

Source: Giffels Management Russia

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