Service	
  Industry	
  in	
  Tatarstan:	
  Current	
  
State	
  and	
  Future	
  Prospects	
  
December	
  2013	
  
	
  
Why Tatarstan? Tatarstan in different...
• 
• 
• 
• 
• 
• 

Good	
  governance	
  
Low	
  corrupCon	
  and	
  red	
  tape	...
Business Environment Benchmarking:
Tatarstan versus Moscow and Saint Petersburg
Methodology
•  Ernst & Young survey
compar...
Infrastructure – Electric Power Supply
Scale	
  0	
  -­‐	
  4	
  where	
  0	
  =	
  no	
  obstacle	
  at	
  all,	
  4	
  =...
Custom Rules and Regulation of Import and
Export
Scale	
  0	
  -­‐	
  4	
  where	
  0	
  =	
  no	
  obstacle	
  at	
  all,...
Dealing with Authorities: State Inspections
Scale	
  0	
  -­‐	
  4	
  where	
  0	
  =	
  no	
  obstacle	
  at	
  all,	
  4...
Dealing with Authorities: Obtaining of Official
Certificates
	
  

Scale	
  0	
  -­‐	
  4	
  where	
  0	
  =	
  no	
  obstac...
Tax Rates
	
  

Scale	
  0	
  -­‐	
  4	
  where	
  0	
  =	
  no	
  obstacle	
  at	
  all,	
  4	
  =	
  serious	
  obstacle...
Corruption
Scale	
  0	
  -­‐	
  4	
  where	
  0	
  =	
  no	
  obstacle	
  at	
  all,	
  4	
  =	
  serious	
  obstacle	
  
...
Security Situation
Scale	
  0	
  -­‐	
  4	
  where	
  0	
  =	
  no	
  obstacle	
  at	
  all,	
  4	
  =	
  serious	
  obsta...
Shadow Economy
Scale	
  0	
  -­‐	
  4	
  where	
  0	
  =	
  no	
  obstacle	
  at	
  all,	
  4	
  =	
  serious	
  obstacle	...
Judicial System
Scale	
  0	
  -­‐	
  4	
  where	
  0	
  =	
  no	
  obstacle	
  at	
  all,	
  4	
  =	
  serious	
  
obstacl...
Access to Financing
Scale	
  0	
  -­‐	
  4	
  where	
  0	
  =	
  no	
  obstacle	
  at	
  all,	
  4	
  =	
  serious	
  obst...
Labor Law
Scale	
  0	
  -­‐	
  4	
  where	
  0	
  =	
  no	
  obstacle	
  at	
  all,	
  4	
  =	
  serious	
  obstacle	
  
T...
Insufficient Qualification of Workforce
Scale	
  0	
  -­‐	
  4	
  where	
  0	
  =	
  no	
  obstacle	
  at	
  all,	
  4	
  =	...
Transport
Scale	
  0	
  -­‐	
  4	
  where	
  0	
  =	
  no	
  obstacle	
  at	
  all,	
  4	
  =	
  serious	
  obstacle	
  
T...
Yandex: Kazan is Russia’s least congested city

Source:	
  Yandex.ru,	
  hip://company.yandex.ru/researches/reports/2013/c...
Doing Business in Russia 2012
Benchmarks 30 Russian cities
4 areas of regulation
•  Starting a business
•  Dealing with co...
Ease of starting a business
35	
  

30	
  

30	
  
25	
  

21	
  

20	
  

17	
  

Kazan	
  

15	
  

Moscow	
  
9	
  

10...
Ease of dealing with construction permits
450	
  
400	
  
350	
  
300	
  
250	
  
200	
  
150	
  
100	
  
50	
  
0	
  

39...
Ease of getting electricity
2000	
  
1800	
  
1600	
  
1400	
  
1200	
  
1000	
  
800	
  
600	
  
400	
  
200	
  
0	
  

1...
Ease of registering property
50	
  
45	
  
40	
  
35	
  
30	
  
25	
  
20	
  
15	
  
10	
  
5	
  
0	
  

43	
   44	
  
33	...
Average Wages	
  
(2013,	
  in	
  rubles)

	
  

60,000	
  

50,400	
  

50,000	
  

39,300	
  

40,000	
  
30,000	
  
20,...
Education
Local Government Spending on Number	
  of	
  University	
  Students	
  per	
  
10,000	
  people	
  
Education (2...
Kazan Federal University
•  Founded in 1804; the second
oldest university in Russia
•  Parnership relation with more
than ...
Tatarstan– Safe location where innovation
thrives
•  One of the most prosperous and
innovative regions in Russia
•  Tatars...
Innovative Economy	
  
	
  

Kazan	
  

Moscow	
  

Saint	
  Petersburg	
  

Output	
  of	
  innovaIte	
  
goods,	
  servi...
Affordable prices for office rental & purchase

Source:	
  Jones	
  Lang	
  LaSalle.	
  Oбзор	
  рынка	
  коммерческой	
  
...
Kazan versus “Millionniki” cities
Kazan – one of the lowest office rent prices among the millionniki cities

Source:	
  Jon...
Rental Rates Comparison
Comparing	
  the	
  highest	
  rates	
  available	
  

USD/year	
  for	
  m2	
  
5000	
  

4500	
 ...
Selling Prices
•  There	
  are	
  no	
  Class	
  A	
  offices	
  for	
  sale.	
  
•  Purchasing	
  price	
  is	
  sCll	
  lo...
Kazan Office Market
• 

Current	
  supply	
  volume	
  of	
  
speculaCve	
  office	
  stock	
  is	
  
esCmated	
  at	
  132,0...
Profile of Tenants

Type	
  of	
  Company	
  

•  Majority of quality offices (Classes A, B) are
rented or bought by federal...
Supply of Office Space
• 
• 
• 
• 

Total	
  amount	
  of	
  modern	
  speculaCve	
  office	
  premises	
  is	
  about	
  64,...
Major Office Buildings in Kazan
Name	
  

Class	
  

Developer	
  

Leasable	
  office	
  area	
  (sq.	
  m)	
  

Korston	
  ...
Major Foreign Tenants in Kazan
Name	
  

Sector	
  

Country	
  of	
  Origin	
  

GE	
  Money	
  Bank	
  

financial	
  ser...
Major Russian and Local Companies in Kazan
Name	
  

Sector	
  

Property	
  Status	
  

Sberbank	
  

financial	
  service...
Major Russian and Local Companies in Kazan
– Part 2
Name	
  

Sector	
  

Property	
  Status	
  

MDM	
  Bank	
  

financia...
Success Stories: Credit Europe Bank and PwC

In	
  Tatarstan	
  since	
  2002.	
  

In	
  Tatarstan	
  since	
  2007.	
  
Success Stories: Credit Europe Bank and PwC

In	
  Tatarstan	
  since	
  2002.	
  

In	
  Tatarstan	
  since	
  2007.	
  
VISION TRANSFORMATION
“A Transformation - Kazan International Business Hub Gateway To Russia”
ECONOMIC DRIVERS & DEVELOPMENT PRECINCT

Central
Business
Precinct

Metropolitan
Park
Precinct

Knowledge &
Education
Prec...
ECONOMIC DRIVERS & DEVELOPMENT PRECINCT
Central Business Precinct
A Vibrant Aerotropolis where Great Businesses Converge
B...
ECONOMIC DRIVERS & DEVELOPMENT PRECINCT
KNOWLEDGE & EDUCATION PRECINCT
The Best of Kazan Talent Pool
QUICK FACTS

Natural
...
METROPOLITAN PARK
METROPOLITAN PARK PRECINCT
Experience Nature in an Urban area
Natural Trail

QUICK FACTS
Precinct Area: ...
KSC SUSTAINABILITY GLOBAL POSITIONING
GOOD

BEST

IDEAL

KLIFD,
Kuala Lumpur

Songdo,
Incheon

KAZAN SMART
CITY
Russia

Ma...
Golden Opportunity is Here Right Now
Capitalize	
  on	
  
Low	
  Costs,	
  
Talent,	
  and	
  
LocaCon	
  

Set	
  Up	
  
...
Global Trends in Tourism
Experienced	
  travellers	
  are	
  looking	
  
for	
  new	
  desCnaCons,	
  and	
  
developing	
...
Russia – Highest Increase of Inbound Tourism
Amongst the Main Tourist Destinations
9th	
  Most	
  Favorite	
  DesInaIon	
 ...
Tourist Arrivals to Tatarstan
Growth	
  from	
  2011	
  
to	
  2012	
  

16%	
  

Growth	
  from	
  2005	
  

132%	
  

Ty...
Development of Tourism in Tatarstan by
Segments
700	
  
600	
  
500	
  
400	
  

Business	
  

300	
  

RecreaConal	
  
Me...
Hotels
Kazan International Airport – a rising star
• 
• 

2 terminals - 3rd to be added in 5 years

• 

Over 2 bln rub. invested ...
average for more than 38% per year. At the period of the maximal increase in 2012 the airport serviced mor
than 1 486 837 ...
Airlines	
  	
  
Moscow – Kazan by rail in 3.5 hours
•  Russian Railways constructing
new high-speed train MoscowKazan-Alabuga, further to
...
Kazan River Port
Year	
  

2008	
  

2009	
  

2010	
  

2011	
  

2012	
  

2013	
  

Passengers	
  (thousands)	
  

139	...
Tatarstan Service Industry & Tourism (Dec 2013)
Tatarstan Service Industry & Tourism (Dec 2013)
Tatarstan Service Industry & Tourism (Dec 2013)
Tatarstan Service Industry & Tourism (Dec 2013)
Tatarstan Service Industry & Tourism (Dec 2013)
Tatarstan Service Industry & Tourism (Dec 2013)
Tatarstan Service Industry & Tourism (Dec 2013)
Tatarstan Service Industry & Tourism (Dec 2013)
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Tatarstan Service Industry & Tourism (Dec 2013)

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Presentation given at the Tatarstan Investment Conference: Service Industry & Tourism on 12 December 2013 in Moscow.

For more information, please visit invest.tatarstan.ru.

Published in: Investor Relations, Travel
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Tatarstan Service Industry & Tourism (Dec 2013)

  1. 1. Service  Industry  in  Tatarstan:  Current   State  and  Future  Prospects   December  2013    
  2. 2. Why Tatarstan? Tatarstan in different... •  •  •  •  •  •  Good  governance   Low  corrupCon  and  red  tape   Skilled  and  affordable  labor   Low  costs   ExcepConal  living  condiCons   Outstanding  business  environment   Good   governance   Low  costs   The  best   business   environment  
  3. 3. Business Environment Benchmarking: Tatarstan versus Moscow and Saint Petersburg Methodology •  Ernst & Young survey comparing 10 Russian regions based on World Bank methodology •  Businessmen assessed to what extent the given criteria pose an obstacle to doing business •  Used scale is from 0 to 4 where 0 means no obstacle and 4 stands for very serious, harmful obstacle Source:  Ernst  &  Young.  Измерение  условий  ведения   бизнеса  в  российских  регионах,  2011  February.   Indicators •  •  •  •  •  •  •  •  •  •  •  •  •  Infrastructure – Electric Power Supply Custom Rules and Regulation of Import and Export Dealing with Authorities: State Inspections Dealing with Authorities: Obtaining of Official Certificates Tax Rates Corruption Security Situation Shadow Economy Judicial System Access to Financing Labor Law Insufficient Qualification of Workforce Transport
  4. 4. Infrastructure – Electric Power Supply Scale  0  -­‐  4  where  0  =  no  obstacle  at  all,  4  =  serious  obstacle   Tatarstan   0.6   Moscow   3   Saint  Petersburg   1.7   0   0.5   1   1.5   2   2.5   Source:  Ernst  &  Young.  Измерение  условий  ведения  бизнеса  в  российских  регионах,  2011  February.   3   3.5  
  5. 5. Custom Rules and Regulation of Import and Export Scale  0  -­‐  4  where  0  =  no  obstacle  at  all,  4  =  serious  obstacle   Tatarstan   Moscow   Saint  Petersburg   0   0.2   0.4   0.6   0.8   1   1.2   1.4   Source:  Ernst  &  Young.  Измерение  условий  ведения  бизнеса  в  российских  регионах,  2011  February.   1.6   1.8   2  
  6. 6. Dealing with Authorities: State Inspections Scale  0  -­‐  4  where  0  =  no  obstacle  at  all,  4  =  serious  obstacle   Tatarstan   Moscow   Saint  Petersburg   0   0.5   1   1.5   Source:  Ernst  &  Young.  Измерение  условий  ведения  бизнеса  в  российских  регионах,  2011  February.   2   2.5  
  7. 7. Dealing with Authorities: Obtaining of Official Certificates   Scale  0  -­‐  4  where  0  =  no  obstacle  at  all,  4  =  serious  obstacle     Tatarstan   Moscow   Saint  Petersburg   0   0.5   1   1.5   2   Source:  Ernst  &  Young.  Измерение  условий  ведения  бизнеса  в  российских  регионах,  2011  February.   2.5  
  8. 8. Tax Rates   Scale  0  -­‐  4  where  0  =  no  obstacle  at  all,  4  =  serious  obstacle   Tatarstan     Moscow   Saint  Petersburg   0   0.5   1   1.5   2   Source:  Ernst  &  Young.  Измерение  условий  ведения  бизнеса  в  российских  регионах,  2011  February.   2.5   3  
  9. 9. Corruption Scale  0  -­‐  4  where  0  =  no  obstacle  at  all,  4  =  serious  obstacle   Tatarstan   Moscow   Saint  Petersburg   0   0.5   1   1.5   2   Source:  Ernst  &  Young.  Измерение  условий  ведения  бизнеса  в  российских  регионах,  2011  February.   2.5   3  
  10. 10. Security Situation Scale  0  -­‐  4  where  0  =  no  obstacle  at  all,  4  =  serious  obstacle   Tatarstan   Moscow   Saint  Petersburg   0   0.5   1   1.5   2   Source:  Ernst  &  Young.  Измерение  условий  ведения  бизнеса  в  российских  регионах,  2011  February.   2.5   3  
  11. 11. Shadow Economy Scale  0  -­‐  4  where  0  =  no  obstacle  at  all,  4  =  serious  obstacle   Tatarstan   Moscow   Saint  Petersburg   1.85   1.9   1.95   2   2.05   2.1   2.15   2.2   2.25   2.3   2.35   Source:  Ernst  &  Young.  Измерение  условий  ведения  бизнеса  в  российских  регионах,  2011  February.  
  12. 12. Judicial System Scale  0  -­‐  4  where  0  =  no  obstacle  at  all,  4  =  serious   obstacle   Tatarstan   Moscow   Saint  Petersburg   0   0.2   0.4   0.6   0.8   1   1.2   Source:  Ernst  &  Young.  Измерение  условий  ведения  бизнеса  в  российских  регионах,  2011  February.   1.4   1.6  
  13. 13. Access to Financing Scale  0  -­‐  4  where  0  =  no  obstacle  at  all,  4  =  serious  obstacle   Tatarstan   Moscow   Saint  Petersburg   0   0.5   1   1.5   2   Source:  Ernst  &  Young.  Измерение  условий  ведения  бизнеса  в  российских  регионах,  2011  February.   2.5   3  
  14. 14. Labor Law Scale  0  -­‐  4  where  0  =  no  obstacle  at  all,  4  =  serious  obstacle   Tatarstan   Moscow   Saint  Petersburg   0   0.2   0.4   0.6   0.8   1   Source:  Ernst  &  Young.  Измерение  условий  ведения  бизнеса  в   российских  регионах,  2011  February.   1.2   1.4  
  15. 15. Insufficient Qualification of Workforce Scale  0  -­‐  4  where  0  =  no  obstacle  at  all,  4  =  serious  obstacle   Tatarstan   Moscow   Saint  Petersbrug   0   0.5   1   1.5   2   Source:  Ernst  &  Young.  Измерение  условий  ведения  бизнеса  в  российских  регионах,  2011  February.   2.5   3  
  16. 16. Transport Scale  0  -­‐  4  where  0  =  no  obstacle  at  all,  4  =  serious  obstacle   Tatarstan   Moscow   Saint  Petersburg   0   0.5   1   1.5   2   2.5   3   Source:  Ernst  &  Young.  Измерение  условий  ведения  бизнеса  в   российских  регионах,  2011  February.   3.5  
  17. 17. Yandex: Kazan is Russia’s least congested city Source:  Yandex.ru,  hip://company.yandex.ru/researches/reports/2013/city_jams/city_jams_2013.xml  
  18. 18. Doing Business in Russia 2012 Benchmarks 30 Russian cities 4 areas of regulation •  Starting a business •  Dealing with construction permits •  Getting electricity •  Registering property These indicators were selected because they cover areas of local jurisdiction or practice. Top  10   Ulyanovsk   Saransk   Vladikavkaz   Rostov-­‐on-­‐Don   Kazan   Kaluga   Stavropol   Measures the impact of the indicators from the perspective of domestic small and medium-size enterprises. Source:  Doing  Business  in  Russia  2012,   hip://www.doingbusiness.org/reports/subnaConal-­‐reports/russia   Yaroslav   Surgut   Irkutsk  
  19. 19. Ease of starting a business 35   30   30   25   21   20   17   Kazan   15   Moscow   9   10   5   9   7   Saint  Petersburg   1.7   2.1   2.1   0   Cost  (%  of  income   per  capita)   Time  (days)   Procedure  (number)   Source:  Doing  Business  in  Russia  2012,  hip://www.doingbusiness.org/reports/subnaConal-­‐reports/russia  
  20. 20. Ease of dealing with construction permits 450   400   350   300   250   200   150   100   50   0   392   361   223   Kazan   172   40   Moscow   Saint  Petersburg   51   Cost  (%  of  income   per  capita)   32   47   18   Time  (days)   Procedures   (number)   Source:  Doing  Business  in  Russia  2012,  hip://www.doingbusiness.org/reports/subnaConal-­‐reports/russia  
  21. 21. Ease of getting electricity 2000   1800   1600   1400   1200   1000   800   600   400   200   0   1852   930   1080   Kazan   Moscow   186   Saint  Petersburg   281  238   9   10   9   Cost  (%  of  income   per  capita)   Time  (days)   Procedures   (number)   Source:  Doing  Business  in  Russia  2012,  hip://www.doingbusiness.org/reports/subnaConal-­‐reports/russia  
  22. 22. Ease of registering property 50   45   40   35   30   25   20   15   10   5   0   43   44   33   Kazan   Moscow   Saint  Petersburg   3   0.2   0.2   0.2   Cost  (%  of  property   value)   Time  (days)   5   5   Procedures   (number)   Source:  Doing  Business  in  Russia  2012,  hip://www.doingbusiness.org/reports/subnaConal-­‐reports/russia  
  23. 23. Average Wages   (2013,  in  rubles)   60,000   50,400   50,000   39,300   40,000   30,000   20,000   33,500   29,900   21,200   18,900   27,000   21,300   average  wage   median  wage   10,000   0   Kazan   Moscow   Saint   Petersburg   Russia   Source:  РИА  Рейтинг,  hip://riaraCng.ru/regions_study/20131029/610592758.html  and  Ministry  of  the  Economic  Development  of  the   Russian  FederaCon.  
  24. 24. Education Local Government Spending on Number  of  University  Students  per   10,000  people   Education (2012) •  40bn rubles •  22% of Tatarstan Expenditures Tatarstan   526   Moscow   886   Saint  Petersburg   809   Source:  Federal  State  StaCsCcs  Service  and  Ministry  of  EducaCon  and  Science  of  the  Republic  of  Tatarstan.      
  25. 25. Kazan Federal University •  Founded in 1804; the second oldest university in Russia •  Parnership relation with more than 80 universities fom about 30 countries •  Listed among top 10 institutions of higher education in Russia •  Over 47,000 students, who follow 300 degree programs – the main education center in Volga region
  26. 26. Tatarstan– Safe location where innovation thrives •  One of the most prosperous and innovative regions in Russia •  Tatarstan has effectively coped with the crisis given to its sound and sustainable business environment •  Safe and laid-back environment provides exceptional conditions for living and working •  Short distances and absence of traffic congestions facilitate regional transport Murders  or  a@empted  murders   (2011)   491       208         Kazan   Moscow   Source:  Federal  State  StaCsCcs  Service.       312   St  Petersburg  
  27. 27. Innovative Economy     Kazan   Moscow   Saint  Petersburg   Output  of  innovaIte   goods,  services  and   operaIons  (millions   rubles)   195,968   158,892   131,899   Share  of  innovaIve   output  in  economic   turnover   15%   4%   9%   Expenditures  on   technological   innovaIon  (millions   rubles)   44,166   171,476   38,290   Share  of  organizaIon   engaged  in  innovaIon   18.1%   18.6%   18.9%   Source:  Federal  State  StaCsCcs  Service,  2011.  
  28. 28. Affordable prices for office rental & purchase Source:  Jones  Lang  LaSalle.  Oбзор  рынка  коммерческой   недвижимости,  2013  and  Jones  Lang  LaSalle.  Feasibility  Study.     •  Office rental rates are 11 times lower than in Moscow and 5 times lower than in Saint Petersburg •  Kazan is also one of the cheapest place among the millionniki cities •  Spectacular increase of office space supply since 2000
  29. 29. Kazan versus “Millionniki” cities Kazan – one of the lowest office rent prices among the millionniki cities Source:  Jones  Lang  LaSalle.  Feasibility  Study.  
  30. 30. Rental Rates Comparison Comparing  the  highest  rates  available   USD/year  for  m2   5000   4500   4000   3000   Kazan   2000   2000   1000   Moscow   Saint  Petersburg     410   0   Kazan   Moscow   Saint  Petersburg     Source:  Jones  Lang  LaSalle.  Oбзор  рынка  коммерческой  недвижимости,  2013  and  Jones  Lang  LaSalle.  Feasibility  Study  and  Jones  Lang   LaSalle.  Feasibility  Study.    
  31. 31. Selling Prices •  There  are  no  Class  A  offices  for  sale.   •  Purchasing  price  is  sCll  lower  to  pre-­‐crisis  levels.   Selling  prices  (Class  B)   RUB  per  sq.m  (excluding  VAT)   72,000   70,000   68,000   66,000   64,000   62,000   60,000   58,000   56,000   69,803   65,370   63,242   2009   2010   Source:  Jones  Lang  LaSalle.  Feasibility  Study.   61,487   2011   2012  
  32. 32. Kazan Office Market •  Current  supply  volume  of   speculaCve  office  stock  is   esCmated  at  132,000  sq  m  of   Class  A  ,  B  and  C.   Class  C  offices  consist  of:     mulCfuncConal  complexes     redeveloped  buildings     offices  on  ground  floor  of   residenCal  buildings                 •  -­‐  -­‐  -­‐  Type  of  Office   16%   Class  A   51%   33%   Class  B   Class  C   Source:  Jones  Lang  LaSalle.  Oбзор  рынка  коммерческой  недвижимости,  2013  and  Jones  Lang  LaSalle.  Feasibility  Study.  
  33. 33. Profile of Tenants Type  of  Company   •  Majority of quality offices (Classes A, B) are rented or bought by federal or international 22%   companies •  Local companies prefer to rent Class C offices •  More than half of space is leased to smaller tenants who occupied less then 100 sq m 42%   The  largest  tenants  in   Kazan   1,800   BTA  -­‐  KAZAN   2,200   VimpelCom   1,200   Lebedyansky   600   InternaConal   4,000   PwC   Local   Federal   Area   (sq.m)   GE  Money  Bank   36%   Size  of  Offices   21%   26%   53%   <  100  sq.m   100  -­‐  300  sq.m   >  300  sq.m   Source:  Jones  Lang  LaSalle.  Oбзор  рынка  коммерческой  недвижимости,  2013  and  Jones  Lang  LaSalle.  Feasibility  Study.  
  34. 34. Supply of Office Space •  •  •  •  Total  amount  of  modern  speculaCve  office  premises  is  about  64,000  sq.m.   Almost  67%  of  the  modern  office  stock  in  Kazan  is  Class  B   Most  A  Class  offices  were  built  a‡er  2006   There  are  113  sq.  m  per  1,000  individuals     Source:  Jones  Lang  LaSalle.  Oбзор  рынка  коммерческой  недвижимости,  2013  and  Jones  Lang  LaSalle.  Feasibility  Study.  
  35. 35. Major Office Buildings in Kazan Name   Class   Developer   Leasable  office  area  (sq.  m)   Korston   A   Korston  Kazan   11,140     Suvar  Plaza   A   Suvar  Estate   11,000   BC  BULAK   A   Bulak  Investment   6,500   Park  Pobedy   A   n/a   2,800   BC  TATARIA   B   Benk   10,740   Business  Park  Idea   B   Idea  Capital   10,300   Paraviia   B   n/a   6,200   RELITA   B   n/a   5,700   BC  PUSHKIN   B   n/a   4,260   BC  IBRAGIMOVSKIY   B   Eifel   2,600   Ruslan-­‐office   B   Astor   2,100   Source:  Jones  Lang  LaSalle.  Oбзор  рынка  коммерческой  недвижимости,  2013  and  Jones  Lang  LaSalle.  Feasibility  Study.  
  36. 36. Major Foreign Tenants in Kazan Name   Sector   Country  of  Origin   GE  Money  Bank   financial  services   United  Kingdom   PwC   consulCng   United  Kingdom   DHL   logisCcs   Germany   Sanyo   electronics   Japan   Credit  Europe  Bank   financial  services   Netherlands   Siemens   engineering  and  electronics   Germany   Lu‡hansa   airlines   Germany   AIG   insurance  company   USA   Ernst&Young   consulCng     United  Kingdom   Schneider  Electric   electricity  distribuCon  and  management   France   Cushman  &  Wakefield   Real  estate  services   USA  
  37. 37. Major Russian and Local Companies in Kazan Name   Sector   Property  Status   Sberbank   financial  services   owner   TAIF   various   owner   Transne‡’   oil  &  gas   owner   MTS   telecommunicaCons     tenant   Beeline   telecommunicaCons     tenant   Megafon   telecommunicaCons     tenant   Alfa  Bank   financial  services   tenant   VTB   financial  services   tenant   Sogaz   insurance  company   tenant   Soglasie   insurance  company   tenant  
  38. 38. Major Russian and Local Companies in Kazan – Part 2 Name   Sector   Property  Status   MDM  Bank   financial  services   tenant   Kit  Finance   financial  services   tenant   Rosbank   financial  services   tenant   Russkiy  Standart   financial  services   tenant   TGT   oil  &  gas   tenant   Alfastrakhovanie   insurance  company   tenant   Nasta   insurance  company   tenant   Rosgosstrakh   insurance  company   tenant   Rosno   insurance  company   tenant   Ingosstrakh   insurance  company   tenant  
  39. 39. Success Stories: Credit Europe Bank and PwC In  Tatarstan  since  2002.   In  Tatarstan  since  2007.  
  40. 40. Success Stories: Credit Europe Bank and PwC In  Tatarstan  since  2002.   In  Tatarstan  since  2007.  
  41. 41. VISION TRANSFORMATION “A Transformation - Kazan International Business Hub Gateway To Russia”
  42. 42. ECONOMIC DRIVERS & DEVELOPMENT PRECINCT Central Business Precinct Metropolitan Park Precinct Knowledge & Education Precinct Special Economic Zone Precinct CBP is envisage to be the next commercial hub after Kazan City Center. With the master plan in place, it will create a catalytic impact to businesses and provide an international business platform for the MNC’s within the region. By preserving the existing river corridor and vegetation, the metropolitan park is designed to provide a platform for social integration for Kazan region, cultural experience and environmental sustainability. A visionary precinct that will transform Tatarstan into one of Russia’s premier destinations for education, research and related industry over the next 10 years. These activities shall allow a platform to retain and nurture talents. A major catalytic precinct for attracting cleantechnology-oriented industry, investment and research to Kazan ensuring that the local business community is benefited along the way.
  43. 43. ECONOMIC DRIVERS & DEVELOPMENT PRECINCT Central Business Precinct A Vibrant Aerotropolis where Great Businesses Converge Business Park QUICK FACTS District Park Central Commercial Core Precinct Area: 225.07 ha Developable Area: 146 ha (65%) Gross Density (FAR) : 3.55 Estimated GFA: 5.3 M sq.m. Estimated Dwelling Units: 10,000 Estimated Population: 39,000 Transient Population: 15,000 Population Density: 175 / ha Building Height: 8 – 40 levels Convention & Exhibition Centre Transit Oriented Neighborhood Regional Shopping Mall Aero Express Station Transit Hotel
  44. 44. ECONOMIC DRIVERS & DEVELOPMENT PRECINCT KNOWLEDGE & EDUCATION PRECINCT The Best of Kazan Talent Pool QUICK FACTS Natural Preservation Precinct Area: 228.11 ha Developable Area: 158 ha (75%) Gross Density (FAR): 3.0 Estimated GFA: 4.8 M sq.m. Estimated Dwelling Units: 13,800 Estimated Population: 56,600 Transient Population: 11,000 Population density: 270 / ha Building Height: 4 – 18 storey Hospitality School Town Center Campus Science Park Transit Oriented Neighborhood Neighborhood Business Park Purpose Built Office
  45. 45. METROPOLITAN PARK METROPOLITAN PARK PRECINCT Experience Nature in an Urban area Natural Trail QUICK FACTS Precinct Area: 35.85 ha Components: Parkland and park amenities, Religious facilities, Arts & Cultural Facilities, Green Infrastructure Cultural Complex Plaza
  46. 46. KSC SUSTAINABILITY GLOBAL POSITIONING GOOD BEST IDEAL KLIFD, Kuala Lumpur Songdo, Incheon KAZAN SMART CITY Russia Masdar, Abu Dhabi Progressive Planning + Design Progressive Planning + Design Progressive 160 hectares 3,000 houses 8,600 hectares 50,000 houses 30 hectares 600 hectares 598.30 hectares 600 hectares 50,000 houses Township Township Urban Development Urban Development Urban Development Mixed Use Mixed Use Mixed Use Green Transport – pedestrian, cycling, zero GHG emission transit Green Transport – 100% of the site is pedestrian, cycling, within 800m from zero GHG emission transit stations transit Reduce household waste by 50%: 80% solid waste recycled 100% renewable Energy energy use Reduce household energy consumption by 60-80% Reduce energy consumption by 66% Reduce treated Water potable water demand by 50% Rainwater Harvesting & Recycled water Potable water Water consumption consumption down by 43% reduced by 40% Waste water recycling 500m walking catchment 800m walking catchment Smart + Connected Location, Country Bedzed, London Status Established Size 1.7 Hectares 82 houses Type Housing development No use of fossil fuels Transport Green Transport – pedestrian & cycling Waste Waste recycled Neighourhoo NA d Size Kronsberg, Hannover Dongtan, China Established Township Bicycle Lanes 26km Bicycle lanes 250 walking distance Electric Car charging fr Transit stations Public Transport – Rail and Bus Car Free City Zero carbon emission 70% of waste is diverted from landfill Waste collected by vaccum, 100% incinerator Zero Waste 40% reduction in carbon emmision 30% reduction in Reduce energy carbon emission consumption by 60% PV and Wind Power 400m walking catchment Waste collected by central system Waste water recyling for irrigation 250m to 400m Walking Neighbourhood Waste to Energy Solar panels for renewable energy source 80% recycled water (desalinated water) 200m walking catchment
  47. 47. Golden Opportunity is Here Right Now Capitalize  on   Low  Costs,   Talent,  and   LocaCon   Set  Up   Headquarters   or  Branch  In     Kazan   Outperform   your  Moscow-­‐ based   CompeCtors  
  48. 48. Global Trends in Tourism Experienced  travellers  are  looking   for  new  desCnaCons,  and   developing  countries  could  offer   airacCve  alternaCves   demand  is  increasingly   orientated  towards  new  types   of  experiences  –  parCcularly   cultural  and  environmental.   Increase  of  demand  of  medical   tourism  (aging  of  populaCon)   Number   ofInternaConal   Tourist   Market  Share  of   Emerging  Countries   2012   1,035  million   2012   47%   2030   1,800  million   2030   57%   Source:  UNWTO  Tourism  Highlights,  2013  and  UNCTAD,  PromoCng  Foreign  Investment  in  Tourism,  2010.  
  49. 49. Russia – Highest Increase of Inbound Tourism Amongst the Main Tourist Destinations 9th  Most  Favorite  DesInaIon  for  InternaIonal  Tourists   Change  (%)  in  regard  to  2011   Country   Arrivals  (in  millions)  2012   1.  France   83   1.8   2.  United  States   67   6.8   3.  China   57.7   0.3   4.  Spain   57.7   2.7   5.  Italy   46.4   0.5   6.  Turkey   35.7   3.0   7.  Germany   30.4   7.3   8.  United  Kingdom   29.3   -­‐  0.1   9.  Russian  FederaIon   25.7   13.4   25   1.3   10.  Malaysia   Source:  World  Tourism  OrganizaCon  (UNWTO)  
  50. 50. Tourist Arrivals to Tatarstan Growth  from  2011   to  2012   16%   Growth  from  2005   132%   Type  of   Tourism   Number   (thousands)   %   All   1.480   100%   977   RecreaConal   611   41%   2008   908   Business   553   38%   2007   896   2006   732   Medical   134   9%   2005   638   Other   182   12%   2012   1.480   2011   1.277   2010   1.113   2009   Source:  Ministry  of  Youth  Affairs,  Sports  and  Tourism  of  the   Republic  of  Tatarstan.  
  51. 51. Development of Tourism in Tatarstan by Segments 700   600   500   400   Business   300   RecreaConal   Medical   200   (in  thousands)   100   0   2005   2006   2007   2008   2009   2010   2011   2012   Source:  Ministry  of  Youth  Affairs,  Sports  and  Tourism  of  the  Republic  of  Tatarstan.  
  52. 52. Hotels
  53. 53. Kazan International Airport – a rising star •  •  2 terminals - 3rd to be added in 5 years •  Over 2 bln rub. invested in renovation •  Capacity: 3.2 mln à by 2025: 5 mln •  Kazan International Airport Passenger Flow (thousands) Passenger flow doubled 2008-2013, 20% per annum growth Cargo capacity untapped: ~ 5k tons(2012) –  3 k tons outgoing / 1.8 k incoming 959 752 2009 1578 2012 2013* 676 2008 1227 1487 2010 2011 *2013 figure Jan-Oct.
  54. 54. average for more than 38% per year. At the period of the maximal increase in 2012 the airport serviced mor than 1 486 837 pax., at the same time increase was 21% in comparison with 2011 when the passenger flow flo was fixed at the rate of 1 226 800 pax. Increase is related to growth of demand for air transportation o domestic and international directions. Main part of air transportation in Kazan falls on business trips an touristic sphere. Kazan International Airport Growth 1600 1486,9 1400 1226,8 1200 958,5 1000 751,5 800 675,7 616,4 600 393,6 400 445,7 309,9 211,6 200 207,8 215,5 238,7 . . 1г 20 12 г 20 1 . 0г 20 1 . 9г 20 0 . 8г 20 0 . 7г 20 0 . 6г 20 0 . 5г 20 0 . 4г 20 0 . 3г 20 0 . 2г 20 0 01 г 20 20 00 г . . 0 *2013 figure Jan-Oct.
  55. 55. Airlines    
  56. 56. Moscow – Kazan by rail in 3.5 hours •  Russian Railways constructing new high-speed train MoscowKazan-Alabuga, further to Siberia •  Kazan-Moscow cut from 14 hrs to 3.5 hrs •  Investment: 855 bln rub •  Completion date: 2018
  57. 57. Kazan River Port Year   2008   2009   2010   2011   2012   2013   Passengers  (thousands)   139   114   133   105   71   115   Connected to Moscow, Saint Petersburg, the White Sea, the Caspian Sea and the Black Sea. 10 cruise companies registered in Tatarstan. Sails to Moscow, Saint Petersburg, Yelabuga, Samara, Nizhniy Novgorod, Cheboksary, Volgograd, Yaroslavl, Astrakhan, Tolyatti, Perm, Rostov-onDon. Source:  Ministry  of  Youth  Affairs,  Sports  and  Tourism  of  the  Republic  of  Tatarstan.    

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