RDIF to invest in development of new logistics facilities
Press release, 23.10.2014
Moscow, October 23, 2014 –The Russian Direct Investment Fund (RDIF), leading Middle Eastern funds, and Development Group 19 (DG19), a prominent real estate developer based in Russia, today announced an agreement to invest in the development of Class A logistics space in Russia as part of a joint venture. The joint venture will provide the necessary funds, strategic expertise and management resources for the development of logistics facilities to satisfy the growing need of companies to improve the efficiency of their supply chains.
RDIF together with co-investors intends to focus initially on the Moscow region market, which is the major transportation hub serving the Moscow region and the rest of the country, and will expand into other regions at later stages. RDIF is also attracting global best practices from the world leading logistics owners, operators and developers.
The development of logistics centres will enable Russian manufacturing and retail companies to reduce logistics costs, which will benefit the end consumer and strengthen Russian companies’ competitive advantage. Russia is among the countries with one of the highest levels of logistics costs: its logistics expenditure as a percentage of GDP is 19%, compared with 11.6% globally. Russia also significantly lags behind the majority of developed and many developing countries in terms of supply of quality logistics space. Due to underfunding in this sector, RDIF and its partners see significant potential for value creation in both the mid and long term.
Kirill Dmitriev, CEO of RDIF, said:
“The Russian logistics market continues to remain undersupplied in terms of high quality logistics facilities compared to other major global cities, with Moscow at 0.8 sqm/capita or approximately half of leading global cities. The demand for logistics facilities is driven by the needs of evolving traditional retail businesses, fast growing ecommerce and the need for efficiency in global supply chain. The trend of significant demand for premium logistics facilities over medium and long term as seen in Russia and global markets makes this investment an attractive long-term opportunity.”
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Russian Direct Investment Fund (RDIF) was established in June 2011 to make equity co-investments primarily in Russia alongside reputable international financial and strategic investors. Based in Moscow, RDIF’s management company is a 100% subsidiary of Vnesheconombank. Further information is available at www.rdif.ru
DG19 is a fully integrated commercial real estate investment & development company with a dedicated team of professionals based in Moscow. DG19 was founded several years ago by partners who have more than 12 years of experience together, developing and managing retail and logistics facilities for leading Russian and multinational companies. As part of their earlier experience Bruce Gardner, Daniel Reneau and AllaSolovieva built the MLP platform which developed 1.3 million sqm of industrial space across Russia, including cities of Moscow and St. Petersburg. The projects received many awards including three times “Project of the Year” from CRE. Today DG19 has two core business units: Industrial Warehousing and Retail Centers.
Russian Direct Investment Fund
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