IIG, Rostik and Belgravia in $bn JV to develop industrial real estate in Russia and CIS (RU/BE/UK)

Immo Industry Group ("IIG") and Rostik Group have announced that they have formed a new joint venture company ImmoRosIndustry ("IRI"). IRI will develop high-quality tailor-made industrial real estate projects across Russia and the Commonwealth of Independent States (CIS).

IIG, based in Aalst (Belgium) is one of Europe's leading developers of tailor-made industrial real estate. Rostik Group, of Moscow, is Russia's leading owner and operator of restaurant, travel and real estate businesses.

Belgravia Financial Services Group will provide the capital and funding for all group's projects and is providing business support, advice and capital on the initial $2 billion stage. The level of funding will rise as IRI rolls-out its plan to build industrial parks across the region.

Belgravia has also negotiated an exclusive strategic partnership with Hilton Group, to roll-out their Hampton Inn and Garden Inn brands on each site developed by IRI. These will be complemented by food and beverage interests, which include: IL Patio, Planet Sushi, 1-2-3 Café, TGI Friday's, Sibirskaya Corona and Rostik-KFC.

The first projects have already been signed and agreed; the development of a production and distribution facility in Moscow for an American flooring manufacturer and the roll-out of the industrial parks commencing with St-Petersburg, Rostov-On-Don and Novosibirsk, and then Moscow, Yekaterinburg, Samara with further developments planned for five additional Russian cities in 2008.

IRI will target only developments in major cities and urban conurbations with access to a population of over one million.

This first phase of IRI's business plan represents a total investment of around $2 billion and will cover an area of over 2 million m² of logistics/industrial buildings. It will also create in excess of 3,000 hotel rooms.

Filip Schelfhout, Chief Executive Officer of IIG who has also become Joint Chief Executive of IRI, said, "Russia has a huge growing economy and industrial and logistic business is at the very core of its development, meaning that occupier demand for institutional quality industrial and logistics facilities is increasing dramatically. We expect to see a multitude of blue chip international businesses attracted to the burgeoning market in Russia, which boasts a large and skilled workforce. The main advantage of the modern industrial parks built according to IIG's latest western European standards is the Tailor Made approach and many of the clients we already act for are showing great interest in what IRI are planning for the East of the continent."

Rostislav Ordovsky-Tanaevsky Blanco, Rostik Group President and Joint Chief Executive of IRI, added, "The IRI proposition offers potential clients a logistics and or process infrastructure which can significantly reduce costs by using IRI's fast-track design and construction 'know how' along with innovative IT solutions. This project also has positive socio-economic repercussions for our country, as it stimulates the influx of foreign investment into the Russian regions. This in turn creates modern work places and boosts the development of local providers of project, engineering and construction services. A combination of IIG's unique experience in this field, Rostik Group's depth of local market knowledge and Belgravia's investment and strong support will serve to successfully launch this joint venture"

Duncan Hickman, Chairman of Belgravia, commented, "The demand in Russia for institutional quality industrial parks is increasing alongside its growing economy. We are delighted to be involved in initiatives such as this to create world class industrial parks. We are experiencing strong institutional demand for investment in this asset class and by backing IIG and Rostik we are following our strategy of only partnering with best of breed companies."

Hilton Hotels
Commenting on Hilton's roll-out with IRI, Ian Carter, Chief Executive of Hilton's International Operations, said, "With an almost absent presence of internationally bra

Related News