NOMOS-BANK opens a USD 56 million credit line to “AKM Logistics” for the construction of a Class “A” warehouse facility in Shushary village

NOMOS-BANK has opened a USD 56 million credit line to “AKM Logistics”, which is a subsidiary of Venture Investments & Yield Management LLP. “AKM Logistics” will direct the obtained funds to carry out engineering preparation of a land plot for the construction of the second and third stages of a Class “A” warehouse complex in the village of Shushary, and to finance the completion of stage one construction.

The funding is provided as project finance for a period of 6 years.

The project, which is carried out by “AKM Logistics”, is characterized by a successful combination of key factors, such as prime location, optimal schedule for putting into operation the facility at different stages of construction, and a professional management team, — noted Sergey Bessonov, Director of NOMOS-BANK’s Department of Structured and Project Finance. — High quality of preparation of project decisions has helped the Bank to quickly assess key parameters and risks, and to take a positive financing decision.

The warehouse complex is situated on a 32.8 hectares land plot on the first line of Moscow Highway. The project construction is carried out in three stages. The total investment will amount to USD 210 million, and the cost of the engineering preparation of the land plot and the stage one construction is USD 76 million. The project is financed using own and borrowed funds.

The first stage of the complex with a total space of 62.8 thousand square meters will be put in exploitation in September 2008. The project’s total area is. The Company intends to fully complete the construction in the third quarter of 2010.

A key prerequisite for the successful realization of a development project is to strictly comply with the preset timeframe, — says Kirill Malyshev, Director of Department of Storage and Industrial Real Estate at Colliers International. “AKM Logistics” has skillfully approached the implementation of this project and has been successfully solving all tasks within the established time periods. It is worth mentioning that this is a serious achievement because, according to statistical data, about 80% of warehouse storage facilities are not completed timely. High-class warehouses are erected in an open field lacking without either roads or capacities. That is why, most developers spend a lot of time on creating transportation infrastructure.

“AKM Logistics” has timely received all necessary approvals and permits and obtained all technical conditions for equipping the future complex with necessary communications. This has become an important additional factor that ensures compliance with the preset construction timeframe.

“Territorial proximity and a developed transportation system are the key parameters for choosing a logistic complex. Based on these criteria, ‘AKM Logistics’ project meets top quality standards, and that is why future clients of the complex will be able to effectively provide logistic services, — notes Andrey Amosov, senior consultant at Jones Lang LaSalle.

‘AKM Logistics’ complex has a prime location on the first line of ‘Rossiya’ federal highway which is a throughway for over 50% of the total cargo traffic in Saint Petersburg. Good transportation access of the future facility is enhanced by its proximity to the Eastern semi-ring of the city’s ring road, Shushary railway station, and Pulkovo airport. Excellent preparation of the project and effective use of a unique transportation infrastructure make ‘AKM Logistics’ warehouse complex the only facility in Shushary that fully meets the needs of large leasers — international and Russian companies.

‘Shushary Industrial Zone comprises automobile plants of such leading global car makers as Toyota and General Motors. Construction of a Suzuki plant will begin soon. The automobile industry companies are followed by spare parts suppliers that face rather tough requirements in terms of delivery time: they shall be situated within a 20—minute driving distance, — says Denis Korotkov, General Director of “AKM Logistics”. — Considering the existing and envisaged transportation infrastructure, the complex under construction has a more advantageous location for plant suppliers situated in Shushary Industrial Zone.’