VVV Company, a leading developer and operator of warehousing facilities within the Russian Federation, has signed a joint venture agreement with London & Regional Properties Fund to develop high-grade stand alone warehousing/logistics parks within selected Russian Regions.
London & Regional Properties (L&RP) will invest 750 million USD(aprrox. 567 million) in a program managed and operated by VVV Company to develop a 1 million m² "network of warehousing" in pre-selected regions. The "Regional Roll-Out" is one of the most ambitious expansion projects for regional warehousing within the Russian Federation.
It will add to the overall infrastructure improvement and economic development of the regions. VVV Company's commitment to warehousing development will accelerate the expansion of the regional logistics industry, attract further investment and development in all real estate sectors, and create employment opportunities.
VVV Company's managing partners, Vladislav Stanislavsky and Wladimir Singer, have marked the regional expansion program as a priority to maintain the company's successful growth.
The logistics parks will vary in size and property specifications, based on each Region's immediate and projected demand. The property mix will also include dry storage and refrigerated warehousing facilities. Development will commence simultaneously in several of the pre-selected regions, first in Saint- Petersburg. Within the first year of the Joint Venture, construction will commence on more then 300,000 m².
For the last 15 years, VVV Company has provided integrated warehousing solutions and logistical support to an array of domestic and international tenants of any type.
Commenting, Michael Mamontlivi, Executive Director of Strategic Development for VVV Company, said: "We are pleased to have entered into a partnership agreement with London & Regional Properties. Their commitment to Russia and efficient execution strategy are an enormous asset for accelerating our rapid development. Consumer spending in Russia has been increasing by approximately 10% annually for the last five years, but the regional transportation and distribution infrastructure are far from adequate to support such growth. Our "Network of Regional Warehouses" will benefit tenants by decreasing transport costs, offering them efficient modern warehousing solutions and providing them with a single, reliable partner for all their regional logistic needs".
Commenting, David Geovanis, Managing Director of London & Regional Properties Russian business, stated:"We are very excited about our new venture with VVV. After reviewing more than fifty potential investments in the warehousing sector, we have decided to team up with VVV. While many developers are trying to enter the attractive warehousing market, we chose to work with VVV due to their more than 10 years of hands-on warehouse development and management experience in Russia. We plan to replicate their demonstrated successful track record in Moscow into the regions. While many developers have announced grandiose plans to roll out warehouses in the regions, we believe our venture with VVV will be executed with great speed and efficiency".
Source: VVV Company