Giffels Management Russia announces next large-scale deal in warehousing property market (RU)

Giffels Management Russia and John Deere have signed a lease agreement for additional 20,000 m² in Giffels South Gate Industrial Park to fulfill John Deere's plans to double the manufacturing space in Russia.

The announcement on production facilities extension in Russia was made during the trip to Russia of Deere & Company Chairman and Chief Executive Officer Samuel R. Allen and other US CEOs who accompanied US Vice-President Joseph Biden to the American Chamber of Commerce's 11th annual investment conference in Russia.

The investment in the facility in South Gate Industrial Park will double John Deere's manufacturing space at that site, allowing the company to expand the products it manufactures in Russia and add new products such as log forwarders, which are widely used in the Russian forestry industry.

"These investments enhance our ability to serve customers in Russia, the Commonwealth of Independent States, and in other nearby markets," Allen said.

As Christopher Stephan Van Riet, Giffels Management Russia Managing Director, stated, "Global leaders such as John Deere see substantial opportunity in the Russian marketplace. To fulfill their business objectives and to support their sustainable development in Russia, leading multinationals require high-quality and effective real-estate infrastructure. We are honored to provide John Deere and our other customers with high-quality real-estate solutions as such partnerships contribute to the positive development of the Russian marketplace".

Taking into account newly leased space, the total area of John Deere production facility in Giffels South Gate Industrial Park adds up to approximately 67,000 m².

South Gate Industrial Park is Giffels Management Russia's flagship project in the Moscow Region. Launched in 2006, the project includes an area of 104 hectares with all engineering infrastructure conditions and permits allowing for construction of an overall 550,000 m² of high quality warehouse and industrial premises. South Gate offers its clients international quality logistics and manufacturing real-estate solutions.

As of today, Phase 1 of South Gate, with a total area of 76,550 m² (88% of which is leased by John Deere) has been commissioned and is fully operational. Besides that, the build-to-suit project of Volvo Truck Center Moscow-South implemented by Giffels Management Russia for Volvo Trucks Russia (ZAO Volvo Vostok) is under construction.

The industrial park is located south of Moscow in the Domodedovo Region in the proximity of the Domodedovo international airport and at the intersection of the two strategic highways: Novokashirkoye Shosse ('Don' Highway) and the Small Moscow Orbital Road (A-107), providing for convenient access to Moscow and the regions of Russia. The scale and infrastructure of the project allows for hosting logistics and industrial facilities meeting a broad range of requirements

Source: D2 Marketing Solutions

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