Knight Frank appointed co-exclusive letting consultant for logopark Severnoye Domodedovo

04 July 2011
The large-scale production and logistics complex, Severnoye Domodedovo, will add a further 300,000 sq m of warehouse premises. The additions will represent a third phase at the complex and will be brought into operation in stages. Work is scheduled to start in Spring 2012. Loan financing will be used for the project, which will cost $250-270 million. Knight Frank acts as co-exclusive letting consultant for Severnoye Domodedovo.

Severnoye Domodedovo logistics park was opened in 2007 and occupies an area of 540,000 sq m 11 km south of Moscow, between the М4 and М2 federal highways. Total investments for construction of the first two phases were $250 million. The territory has space for 16 warehouse buildings, of which 11 are currently operational. The design includes railway spurs to 12 of the buildings, and unloading is facilitated by a system of cross-docking at the premises. There is vehicle parking for 2200 cars and 1100 lorries, with space for manoeuvring of heavy goods vehicles.

“There are several reasons for our decision to proceed with the third phase: optimal location of the complex, developed infrastructure, demand for new warehouse space, and improvements in the economy,” said Eriskhan Kurazov, the CEO of Severnoye Domodedovo.

Vyacheslav Kholopov, Director of the Warehouse, Industrial and Land Department of Knight Frank in Moscow, said: “The warehouse market in the Moscow area is experiencing a shortage of modern, speculative supply. So further expansion of a production and warehouse complex, which already has an established profile, is timely and should be profitable. The new work at Severnoye Domodedovo reflects a trend. It shows that developers have regained confidence that quality demand is present on the market and are ready for new construction projects. As co-exclusive consultant for Severnoye Domodedovo we are confident that the new capacities at the complex find demand from both Russian and foreign companies.”

Severnoye Domodedovo production and logistics complex

Since 2011 Severnoye Domodedovo has been one of the main assets of the businessman Sait Gutseriev, following a transaction brokered by the Russian credit organization, Binbank. The complex was previously owned by Eurasia Logistics. Tenants at Severnoye Domodedovo include: distributors MAK, DAK, BTK, Eurodesign, and Rosstyle; major logistics operators STS Logistics, SLG, NLK, and MSG; retailers Technosila and Svyaznoy; and the production companies WestvacoEastPrint, Multiflex, Almafood, etc. According to estimates by Knight Frank, the Severnoye Domodedovo complex holds about 13% of the market for class-А warehouse space in the Moscow area.