A Unique Warehouse Project for “CenterObuv” Company Built by PNK Group in Record Short Time

26 January 2012
A deal between PNK Group and Europe-largest shoe retailer – “CenterObuv” company has been completed. Unprecedented high-tech warehouse complex constructed from scratch by PNK Group using build-to-suit approach in just 7 months is ready for operation. The overall area of the building is 49 471 sq. meters, 36 191 sq. meters of which are warehouse premises. The total amount of the contract has exceeded $68 mln. Knight Frank has acted as the consultant of this deal.

New warehouse terminal of “CenterObuv” situated in the new logistic park “PNK Vnukovo” is a unique example on the Russian market of creation of a turnkey solution from the point of view of quality and infrastructure as well as of tight deadlines of construction.

It is the first project in Russia that is fully compliant with international standards FM Global. These standards were developed by the largest insurance companies in the world. They have special requirements to fire prevention, reliability of construction and safety of the buildings. For example, according to FM Global standards only incombustible materials can be used in construction along with ESFR-25 fire-extinguishing system that is three times more powerful than its Russian analogue listed in the state requirements to such buildings. In addition there must be a water supply in autonomous water tanks and double key security systems in a warehouse. At the moment all PNK Group objects are built in compliance with FM Global.

Build-to-suit projects stipulate individual approach to clients needs and allow to considerably optimize business-processes in a warehouse. In view of this PNK Group used a number of technological solutions specifically developed to meet business requirements of “CenterObuv”. Many of these innovations were used in Russia for the first time. For example, PNK Group used an optimized cross-docking technology: 103 docks are installed to be used in the building with 36 thousand sq. meters of warehouse space. The warehouse complex has autonomous entrances with its own access points from the motorway. Due to this innovation an unprecedented for Russia speed of goods turnover was achieved, which is especially important for Europe-largest shoe retailer.

«Turnover for us is one of the key criteria of warehouse efficiency, - said Elena Gorislavetz, Logistics Director of “CenterObuv”. – Solution suggested by PNK Group entirely meets our requirements – from the point of view not only of technical characteristics of a warehouse complex, but of infrastructure as well. We are especially glad that such a difficult project was built in such a short period of time”. Earlier, the average time required by PNK Group in order to construct a build-to-suit project in an active warehouse complex with prepared infrastructure was 7 months. But “CenterObuv” object was built from scratch in the framework of the first phase of “PNK – Vnukovo” industrial complex. “While the internal standards of construction in PNK Group have significantly outrun the level of Russian industrial real estate market a long time ago, we are constantly improving them, - said Oleg Mamaev, Executive Director of PNK Group. - Each new project of ours is better than the previous one. Many solutions used in “CenterObuv” project will supplement our building standards”.

«The investment contract with “CenterObuv” company was signed in record time for the Russian warehouse market. Moreover, PNK Group started the construction in summer 2011 and met the deadlines of the contract when successfully transferred the object to the client in 7 months after its signing. It takes the company to a new level of efficiency in implementation of build-to-suit projects. “As of today it is the largest build-to-suit deal in the market, which was signed thanks to the client focused approach and result-driven activity of PNK Group’s team”, - said Anton Repin, Deputy Director of Warehouse and Industrial Real Estate Department of Knight Frank Russia and CIS.

Michael Duvanov, Deputy Director of Warehouse and Industrial Real Estate Department of Knight Frank Russia and CIS: “We are grateful to “CenterObuv” company for their long-term cooperation with Knight Frank’s team. This joint work resulted in participation of our partner PNK Group in the build-to-suit project, which allowed us to take the business of our client to a new level. We wish “CenterObuv” future successes and prosperity in 2012”.

“CenterObuv” Company

ZAO “Torgoviy Dom “CenterObuv” is part of Centrofashion Corp. group of companies. It launched its business activity in 1992 and became the largest network operator in shoe retail in Russia. The share of the company in Russian market of footwear amounts to 4,3%. Centrofashion Corp. Is working in two mutually complementary directions: family shops “CenterObuv” and young adult shops in fast-fashion format «Centro», which are the most recognized brands in Russia. As of today the retail network of the Group comprises more than 800 shops in more than 200 towns in Russia.

PNK Group

PNK Group is a full-service development company. As a leader of the Russian “A” Class industrial spaces market it has demonstrated a unique example of dynamic growth even in the environment of world financial crisis. PNK Group is oriented to regular speculative warehouses, industrial complexes, build-to-suit projects which envisage further lease or sale, and construction of multi-temperature warehouses. Starting from 2003 and until 2011 PNK Group implemented 8 projects of industrial and warehouse real estate, namely “A” Class production and office/warehouse floors with the total area of 748,000 square meters (about 8,7 million square feet). Presently, the aggregate area of the Company's projects amounts to more than 1,800,000 square meters in the markets of Moscow, Saint-Petersburg and Novosibirsk.

A competitive edge of PNK Group is implementation of complete development project: from facility concept, cost efficiency analysis and conceptualization down to investment, financing, construction, lease out or sale with further operation. The Company has a design unit and special equipment fleet of its own. It is preparing to put into operation in-house production of construction materials. PNK Group is keen to meet environment protection requirements and implements new technologies, such as energy saving etc., to substantially reduce facility operation costs.

That is why among the lessees and partners of PNK Group are the leading companies in respective sectors: Х5 Retail Group, DIKSI, Eldorado, TVOYE, ETM, Monex Trading (Mothercare, Next, Claire’s, M•A•C, The Body Shop), Uhrenholt Logistics, Rosnano, etc.

Expertise in international standards and focus on details allow PNK Group to offer its clients a unique product in the form of turn-key solutions, which in terms of quality are far ahead of the level of Russian industrial market development.

Knight Frank

Established in London more than a century ago, Knight Frank is the renowned leader of the international real estate market. With offices located globally, Knight Frank is able to provide a full range of services in the real estate market all over the world. Together with Newmark Company, Knight Frank’s strategic partner, the company encompasses 243 offices in 43 countries across six continents.

Knight Frank has been a symbol of professionalism for tens of thousands of clients all over the world for 116 years. After 16 years, Knight Frank has become the leading company in the commercial, warehouse, retail and residential real estate segments of the Russian real estate market. More than 500 large Russian and international companies in Russia have already made use of the company's services.

Knight Frank's employees are professional consultants in various fields connected with real estate, such as rent and sale of properties, selection of properties, attraction of investments, consulting, valuation, market research, marketing and project promotion, property and asset management.

We offer the full range of consulting services not only for developers and owners, but also for real estate users; both legal entities and individuals. Now, the company’s staff consists of more than 200 employees.