Real Estate & Construction Practice Newsletter (15 August - 30 September, 2013)
Events
Capital Group will construct more than 1.5 million sq.m. of real estate in Moscow
The package of the company’s projects includes residential and commercial real estate. Among them - a major IFC in the north-west of Moscow, a total area of 185,000 sq.m. comprising from 800 apartments and a shopping and entertainment complex of 35,000 sq. m., an elite club project in the Central District for 26 apartments in the immediate vicinity from the Kremlin.
Moscow will attract RUB 21 billion of investment for land development in the South-West of the capital
Moscow authorities plan to raise RUB 21 billion for the development of the territory in the North Butovo. The federal training Centre will be built on the territory, the project covers the construction of schools and kindergardens, as well as the technology park.
O1 Properties purchased the land near Kutuzov Avenue for the construction of a business center
The developer bought the land for the construction of a business center of 27.3 thousand sq.m. with the parking for 300 cars. Kutuzovsky Avenue is one of the most promising markets in the office real estate class "A". Experts estimate the investment in this project with the purchase of the plot could raise up to $100-116 million.
Class A business center on the Rublevo-Uspensky highway is listed for sale
Investor and developer - JSC “Ferro-Story” company - is selling a business center Pallau RB, total area of 56,200 sq.m., located at the intersection of Rublevskoe Highway and the Moscow Ring Road. The complex provides a large surface parking on 5 floors with a total area of 9,700 sq. m., while the total number of parking spaces will be 548. Completion is scheduled for the 2nd quarter of 2014.
Class A Business Park will be built in “New Moscow”
Under the project documentation business park “K2” comprises of four 7-storey office buildings with a leasable area of approximately 18.5 thousand sq.m. each. The total leasable area of the project will cover 74 thousand sq.m. Rental rate in the first two buildings of the business park will amount to $400 per sq.m., for the other two - $450 per sq.m.
Group of Companies “Pioneer” will build apartment hotel in the north-west of Moscow
The sale start date of Aparthotel YE'S and the construction start is scheduled for the end of October 2013. Multifunctional complex that includes apart-hotel and a business center with a total area of 44,000 sq.m. will be built by October 2015.
Crocus Group will invest $450 million in the first building of the “Crocus Expo” in Moscow
Crocus Group is planning to build at the intersection of Volokolamsk Highway and the Moscow Ring Road a multifunctional complex “Crocus Expo”, which will include 14 skyscrapers total area of 1 million sq.m. The first building - office tower will cover total area of 148 thousand sq.m. Investment in its construction will amount to $450 million.
The Moscow City Government will reduce the land fee for the construction of hotels
The city authorities will increase the attractiveness of the hotel market by reducing the fees for the use of land assigned for the construction of hotels. For these purposes the capital government will also introduce to the market buildings in the Central District of the capital owned by the city, and suitable for conversion to mini-hotels. Department of the City property has already selected 7 projects with total area of 7.2 thousand sq. m. for possible conversion into hotels.
“Gals-Development” sells 2,000 sq.m. in multifunctional complex “IQ-quarter”
14th and 15th floors of the multifunctional complex with total area of about 2,000 sq.m. has been put for sale. The 1-11 floors of the building will be occupied by a five-star hotel of the Sofitel chain with 159 rooms under the management by the international operator Accor Group.
The Investment Committee has announced a competition to transform the courtyard Apraksina
The website on procurement of the Russian Federation opened information that the investment committee announced a competition for the creation of architectural and planning sketch of the project Apraksin Dvor (Apraksin Yard) in St. Petersburg. The initial price amounts to RUB 1 million, the final decision is scheduled for November 1. Apraksin Dvor has become a multipurpose center with retail, commercial and hotel functions.
The Altai region implements construction of a large year-round complex of nature and adventure tourism under the public-private partnership mechanism
The initiator of the project is the Department for the development of the Altai Territory tourism-recreation and medical spa facilities. As a result, the project will create 3,500 placements and 2,200 jobs. Draft project of the special economic zone has already been developed and approved, the first stage of construction is completed, 2nd stage of the internal infrastructure and tourist facilities are under construction. Implementation of the project is scheduled for years 2007-2055. Requested private investment for the construction of tourist facilities amounts to EUR 245 million. Project payback period - 11 years.
The Volgograd region plans a project on integrated development of the territory
In 2014-2016 the government wishes to build several 4-22 storey apartment buildings, common housing area of 1500 sq.m., on the territory of “Radiocenter -2”. The land area of 303.9 hectares has a prime location - about 2 kilometers from one of the transport routes of Volgograd. The Volgograd region Administration asks for EUR 1,000 million of private investment, EUR 36 million of which will be spent on the construction of engineering infrastructure. The authorities intend to include resource-supply organizations to the investment programs. The return of investment will be made through the profit gained from the sale of residential properties.
The Government of the Ivanovo region will attract EUR 2 million for the establishment of cultural and tourist center
As part of the project “Palekh - the Firebird Homeland” it is planned to build the main buildings, shopping malls, hotels with a wellness center, administrative and service buildings and parking. Regional authorities provide a comprehensive support to investors. The total project cost is estimated at EUR 2.442 million, the project implementation period is 5 years.
Krasnodar authorities initiated a comprehensive renovation and construction of residential quarters in the city center
Residential block number 169 is located in the central part of Krasnodar city on the area of 20 hectares. The project includes construction of a multi-storey residential buildings, the total area of the housing will be 48,360 sq.m. (600 apartments). As part of the project EUR 42.055 million euros of private investment will be attracted, business plan has already been developed, land has been formed, construction documents has been developed. Project implementation period will take 5 years, the payback period estimates to 3.8 years.
The Leningrad region continues to create a modern “Industrial Zone of Ust-Luga”
The project provides development of five interconnected clusters: transportation and logistics, industrial, city- cluster, recreational, agricultural clusters. The project envisages the construction of a new town for 34.5 thousand (with the prospect for 58 thousand) citizens. The company Roland Berger Strategy Consultants and JSC “Ust-Luga” developed the concept and the business plan of the Industrial zone with a focus on deep processing of hydrocarbon and petrochemical cluster creation. Project implementation period - the period of 2011-2030, the cost of the project amounts to EUR 12,227 million, EUR 1,591 million of which will invest JSC “Ust –Luga”.
Class A logistics complex is under construction in the Moscow region
“Industrial Park” NORTH” Ltd. is implementing the project on a plot area of 499602 sq.m. in Solnechnogorsk area. The land plot has already been transferred from agricultural lands into industrial, energy, transportation, communication, broadcasting, television, and computer science, earth for space activities, defense, security and special use lands. Construction of the complex is at the stage of excavation. The estimated completion time - IV quarter of 2015, the payback period - 6 years. TotalconstructionbudgetfortheprojectisEUR179 million.
The Ministry of Investment Policy of the Nizhny Novgorod region will attract EUR 49 million for construction of industrial park
Construction plan provides the objects of industrial park office and business infrastructure, business center with engineering and experimental laboratories of social, transport and engineering infrastructure, contributing to not only meet the needs of small innovative companies, but also – the needs of anchor residents.
The project shall be implemented by 2016, the total cost of the project amounts to EUR 108.8 million, the payback period of the project - more than 10 years.
Rostov-on-Don is working on the design and construction of the northern tunnel
As a result, the project will increase the capacity of the road network of the city, will improve the figures of traffic intensity, and will create an additional alternative route. The tunnel will be 3.5 km long. The estimated cost of the project will raise up to EUR 227-273 million, the authorities plan to attract private investment under the concession agreement.
The project goals include the development of the southern part of St. Petersburg, the development of social, engineering and transport infrastructure of the satellite city “South”, the creation of quality housing at affordable prices, improvement of socio-economic conditions of the citizens of St. Petersburg, as well as the growth of the investment attractiveness and economic indicators overall. Project implementation period - 2011-2028 years, the total cost of the project amounts to EUR 4 billion.
A draft plan of Schekinskoe industrial park has been developed in the Tula region
The project has been initiated by JSC “Corporation of Development of the Tula region”. The aim of the project is involvement of residents in the area of infrastructural maintenance and development of low-rise housing. Currently, development plan, general plan of the area were designed, works on obtaining technical conditions for gas are being exercised. The total cost of the project is EUR 11.3 million, EUR 9 million of which is planned to attract through private investment. Project shall be implemented by 2015, the payback period - 2019.
Tourist complex “Bektyshevo” will be created within the tourism and recreation cluster of the Yaroslavl region
By 2016, as part of the project authorities anticipate to create 120 new jobs and increase the tourist flow to 14 million people, the area of hospitality availability will be increased up to 1.5 sq.m. The expected period of the project implementation - 2014-2015. The total project cost is nearly EUR 16 million, about EUR 15 million of which is expected to request from private investors.
Federal Legislation news
State authorities will cancel the division of land for its purposes
Under the bill, prepared by the Ministry of Economy, from 2016 the division of land into categories according to the purpose in the Russian Federation will be canceled. The local authorities will determine which activities should be lead on the land. An exception is made only for specially protected areas, forest land and water reserves, as well as valuable farmland.
Russian Economic Development Ministry clarified on innovations in the field of cadastre, to take effect from 1 October 2013 in connection with the adoption of the Federal Law of 23.07.2013 № 250 –FZ
Explanations relate, in particular, to the procedure of presentation of surveying plan, technical plan and survey act in the form of electronic documents, submission of the application for the state cadastral registration, applications for correction of a clerical error in an electronic form, registration of land formed in connection with the establishment of zones with special conditions of use of the area, as well as the process and times of documents storage in the state cadastre of real estate and the procedure of obtaining the information from the State Cadastre of Real Estate and Unified State Register of Rights.
News on legislation on the Russian regions
Moscow authorities have approved a new tariff for the change of use of land
The new tariff will amount from 5 to 80% of the difference in the cadastral value of land before and after the change. The new process of the changes is established in the amendments to the Capital Law “On Land Use”. The amount of payment for changing the permitted use is determined by taking into account the difference between the cadastral value of land on the day of application and the cadastral value of land with a modified type of permitted use, multiplied by the rate.