RDIF and Mubadala invest in the expansion of Professional Logistics Technologies

Press release, 25.12.2018

Moscow, December 25, 2018 – The Russian Direct Investment Fund (RDIF), the sovereign fund of the Russian Federation, Abu Dhabi’s Mubadala Investment Company, and other leading Middle Eastern investment funds have announced a joint investment in the development of the logistics platform Professional Logistics Technologies (PLT).

The investment will further support the growth of PLT’s North Sheremetyevo Park. The transaction assumes acquisition of a modern multi-temperature class A warehouse with an area of 43,000 square meters in the Moscow region from Russian grocery and convenience goods retail chain Verny, with simultaneous long-term lease contract for the complex. Verny will use the proceeds to further develop its retail network and open new grocery stores in Moscow and the regions.

Following the transaction, PLT is now one of the top four largest logistics park owners in Russia.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), noted:
“We think the logistics sector has very strong potential, as we see a shortage of high-tech multi-temperature warehouses in central Russia. This investment will help the network of more than 660 stores to free up funds for business development, optimize supply chains, and increase the availability of quality goods at low prices for the Russian population. We will continue to develop our logistics platform and plan to increase PLT’s portfolio to one million square meters following investments in various regions of Russia.”

Oleg Vysotsky, CEO of Verny store chain, noted:
“We are very pleased to cooperate with the Russian Direct Investment Fund. This transaction will allow us to free up funds and use them for the development of our network. Verny’s stores are popular among customers, as they are local and sell popular products at low prices. Taking into account the preferences of our customers, we see great potential to increase the number of our stores and our general sales. Our Company will continue to develop logistics infrastructure as an essential component of the implementation of our strategy. We thank RDIF for its effective work and high professionalism.”

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Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Currently, RDIF has experience of the successful joint implementation of more than 70 projects with foreign partners totaling more than 1.4 trillion rubles and covering 95% of the regions of the Russian Federation. RDIF portfolio companies employ more than 700,000 people, and generate revenues which equate to more than 5% of Russia’s GDP. RDIF established joint strategic partnerships with leading international co-investors from more than 15 countries that total more than 40 billion dollars. Further information can be found at www.rdif.ru

Mubadala Investment Company actively manages a worldwide portfolio supporting the vision of a globally integrated and diversified economy, through sustainable returns to its shareholder, the Government of Abu Dhabi. In March 2018, Abu Dhabi Investment Council (ADIC) joined the Group. Mubadala’s US $225 billion portfolio spans five continents with interests in aerospace, ICT, semiconductors, metals and mining, renewable energy, oil and gas, petrochemicals, utilities, healthcare, real estate, defense services, pharmaceuticals and medical technology, agribusiness and a global portfolio of financial holdings. Mubadala is a trusted partner, an engaged shareholder and a responsible global company that is committed to ethics and the highest standards. For more information about Mubadala, please visit: www.mubadala.com

PLT logistics platform was created by RDIF and other co-investors in 2016 to invest in Russian Class A logistics complexes and meet the demand from Russian and foreign companies for high-quality infrastructure facilities. The company has logistics parks with a total area of 500 thousand square meters running. Investors plan to increase the number of PLT projects across the country, creating a leading player in the Russian logistics services market. The platform is aimed at introducing in Russia the best world practices from leading logistics operators and development companies. Further information can be found at www.pltrussia.ru

Verny store chain is one of the newest in the country. The first Verny stores were opened at the end of October 2012 in Moscow and St. Petersburg. At the end of 2017, the network included about 490 stores in 11 constituent entities of the Russian Federation, and also had three warehouses with an area of over 100,000 m2. On the release date, the network includes 661 stores. It plans to open more than 250 stores in 2019.

For additional information contact:
Arseniy Palagin
Russian Direct Investment Fund
Press Secretary
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
E-mail: arseniy.palagin@rdif.ru

Andrew Leach / Maria Shiryaevskaya
Hudson Sandler
Tel: +44 (0) 20 7796 4133