RFNY2013: Invest In Moscow - Moscow Investment Projects


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Presentation was made during the Russia Forum New York 2013 series - “Invest in Moscow: Doing Business in Russia’s Capital” which was held at the Princeton Club of New York on October 28th.

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RFNY2013: Invest In Moscow - Moscow Investment Projects

  1. 1. Government of Moscow INVESTMENT PROJECTS IN RUSSIA’S CAPITAL 2013 1
  2. 2. Expanding the city’s hotel network Developing   healthcare   infrastructure   CITY  INVESTMENT   PROJECTS   Cultural  heritage   sites   Developing  facili;es   for  educa;on   2
  3. 3. THE  LAND  AUCTIONS  PROCESS   Preparing  and  holding   aucLons   • Compiling  lists  of  land  plots  (h?p://dgi.mos.ru)     • Developing  land  and  city-­‐planning  documents   • Assessing  market  value  of  plots   • Determining  iniLal  bidding  condiLons   • Producing  document  packages  for  each  lot   • Holding  aucLons       • Concluding  rental  agreements  with  aucLon  winners   3
  4. 4. LAND  AUCTIONS  FOR  NEW  CONSTRUCTION   Lot  documents  include   sufficient  informa;on  to   decide  whether  to  bid  in   an  auc;on   -­‐  Assessment  of  engineering  infrastructure  of  lot,  including  associated  costs;   -­‐  City-­‐planning  reference  for  land  plots  (main  type  of  use  permi?ed,  plus  technical/economic   data);   -­‐  DraS  rental  agreement  for  the  land  plot;   -­‐  The  plot  is  listed  in  the  official  land  registry;   -­‐  The  plot  is  vacant,  both  de  jure  and  de  facto;   Payment  following   auc;ons   -­‐  Payment  of  the  purchase  cost  of  rental  rights  is  due  within  3  days  from   the  aucLon  date;   -­‐  Annual  rent  during  the  construcLon  period:  1.5%  of  the  land-­‐registry   value  of  the  plot  (payable  quarterly);   The  period  of  rental   agreements  for   construc;on   Lists  of  land  plots  for   auc;on  are  posted  on-­‐ line:   6  years   hJp://tender.mos.ru   hJp://torgi.gov.ru   hJp://dgi.mos.ru   4
  5. 5. LAND  AUCTIONS   Number  of  land  plots   Total  star;ng  price  of   rental  rights,  in  RUR   Total  sum  of  auc;on   sales,  in  RUR   Increase  in  cost  due  to   auc;on   53   347,636,685   693,087,685   50.15%   Sale  of  land  plots  by   auc;on  in  2011  &  2012   Sold  between  January  31,  2013  and  August  29,  2013   Scheduled  for  sale  before  the   end  of  2013     Land  acquisi;on  trends   Total  starLng   price  of  rental   rights,  in  RUR   Total  sum  of   aucLon  sales,   in  RUR   Increase  in   cost  due  to   aucLon   Number  of   land  plots   Total  starLng   price  of  rental   rights,  in  RUR   33   Sale  of  land  plots  by   auc;on  in  2013   Number  of   land  plots   590,643,600   964,353,600   61.24%   33   1,601,817,700   -­‐  The  most  popular  type  of  use  permi?ed  is  retail    outlets  and  fitness  centers;   -­‐  Area  of  land  plots:  from  95  square  meters  to  14,230  square  meters   5
  6. 6. SALE  OF  CITY  PROPERTY   The  list  of  sites  available  by   auc;on  can  be  viewed  on-­‐ line:   Lot  documents:  sufficient   informa;on  to  decide   whether  to  bid  at  auc;on   Chains   hJp://tender.mos.ru   hJp://torgi.gov.ru   hJp://dgi.mos.ru   -­‐  DraS  rental  agreement;   -­‐  All  technical  documents  for  the  building;   -­‐  The  building  is  vacant,  both  de  jure  and  de  facto   For  hotel  chains,  there  is  the  opLon   of  acquiring  several  properLes  in   one  lot   6
  7. 7. HOTEL  SECTOR  DEVELOPMENT   Reconstruc;on   of  exis;ng   property   Land  auc;ons  for   new  construc;on   PROPERTY  PRIVATIZATION   7
  8. 8. RECONSTRUCTION  &  RENTal  OF  EXISTING  PROPERTY  FOR  HOTEL   sector  use   Inventory  of  city  property   suitable  for  hotel  sector     Rental  rights  sold  by   auc;on   -­‐  -­‐  -­‐  -­‐  Rental  terms  and  payment   procedure   Time  period  for   reconstruc;on   Rental  period  of  10-­‐15  years;   Buildings  aucLoned  together  with  land  plots;   Payment  of  cost  of  rental  rights  (winning  bid)  within  3  days;   Rental  payment  for  land  for  the  first  two  years  of  the  agreement:  0.3%  of   the  land-­‐registry  value;   -­‐  Third  year  of  rental:  double  rate,  fourth  year:  5%,  fiSh  year:  7%,  sixth  year:   8%,  thereaSer:  10%  (percentages  of  land-­‐registry  value);   -­‐  The  approximate  rental  sum  for  the  first  year  of  construc;on,  given  a   change  of  type  of  permiJed  use  can  be  assessed  using  the  calculator  on   our  website:  h?p://dgi.mos.ru     -­‐  1-­‐3  years:  opLmal   -­‐  Over  3  years:  expensive   8
  9. 9. PUBLIC-­‐PRIVATE  PARTNERSHIPS  IN  EDUCATION   Land  auc;ons  for   construc;on   Sale  of  city  educa;on   facili;es  to  investors   Investor-­‐funded   repair  &  rebuilding  of   exis;ng  educa;on   facili;es   9
  10. 10. DEVELOPMENT  OF  EDUCATION  INFRASTRUCTURE   BY  PUBLIC-­‐PRIVATE  PARTNERSHIPS   List  of  land  plots  and  real   estate   Discounted  terms  for  the   rental  of  land  and  buildings   used  for  educa;onal   purposes   hJp://tender.mos.ru   hJp://torgi.gov.ru   hJp://dgi.mos.ru   -­‐  Rental  rate  for  use  of  buildings:  1  RUR  per  square  meter  per  year  (80%  of  children   in  Moscow  are  registered);   -­‐  Rental  rate  for  use  of  land  plots:  1  RUR  per  square  meter  per  year;   -­‐  Rental  period  for  land/buildings:  49  years;   -­‐  Rental  period  for  land  during  construcLon/reconstrucLon:  6  years   Land  plots   Kindergarten  buildings   QuanLty   Total  area   QuanLty   Total  area   Sold   3   9911  m3   7   13808.2  m3   Scheduled   10   60160  m3     27   30142.8  m3   Auc;ons  sta;s;cs   10
  11. 11. Development  of  healthcare  infrastructure   PROJECT “THE DOCTOR NEXT DOOR” CONCESSIONS 11
  12. 12. PROJECT  “THE  DOCTOR  NEXT  DOOR”     Rental  terms   -­‐  Rental  rates  for  use  of  premises:  1RUR   per  square  meter  per  year;   -­‐  Rental:  20  years     Terms  of  discounted   rental  for  use  of   premises   Area  of  premises   -­‐  AcLviLes  related  to  mandatory  medical   insurance;   -­‐  Volume  of  visits  to  primary  care  physicians:  at   least  8,000  per  year;   -­‐  Compulsory  license  for  medical  acLvity;   -­‐  PracLcal  experience  of  at  least  3  years  as  of   February  25,  2013;     From  150  to  450  square  meters   12
  13. 13. Healthcare  infrastructure  development:   concessions   CONCESSION:  the  crea;on/reconstrucLon   by  a  concession  operator  (investor)  of   property  that  belongs  to  a  public  partner   (the  city  of  Moscow),  and  the  performance   of  economic  acLvity  using  that  property     Concession   agreement   -­‐  Concluded  for  an  extended  period  (up  to  49  years);   -­‐  Concluded  on  a  compeLLve  basis;   -­‐  A  complex  set  of  relaLons  can  be  formalized  in  one  document     Concession  property   -­‐  Free  of  third-­‐party  rights;   -­‐  May  be  transferred  by  the  concession  operator  for  use  by  third   parLes,  with  the  consent  of  the  owner;   13
  14. 14. DEVELOPMENT  OF  HEALTHCARE  FACILITIES:   CONCESSION   CITY TEACHING HOSPITAL # 63 Medical  service   Sta;s;cs   Area  of  land  plot     20,109.0  square  meters     Area  of  premises  for   reconstrucLon   29,647.6  square  meters     Total   volume  of   services   Volume  of   MMI   services   49  years   DuraLon  of  investment  phase   (design,  construc2on,  ou3i4ng,   launch)     4  years   Planned  investment  costs,  total   29,760   Up  to  7,000   Number  of  hospitalizaLons:  endovascular  surgery   center 4,867   Up  to  1,000   Number  of  visits:  endovascular  surgery  center 386,880   Up  to  65,000   Number  of  hospitalizaLons:  perinatal  center   Term  of  concession  agreement   Number  of  surveys:  positron-­‐emission   tomography  center 6,600   Up  to  1,000   305,040   Up  to  55,000   Number  of  obstetric  deliveries   4,538   Up  to  1,000   Number  of  hospitalizaLons:  intensive  care       1,460   Up  to  500   189,720   Up  to  25,000           4,374  million  RUR                        -­‐  Cost  of  reconstrucLon                      -­‐  Cost  of  equipment   Share  of  mandatory  medical   insurance  (MMI)  services   2,884  million  RUR       Number  of  visits:  perinatal  center     1,490  million  RUR   Between  20%  and  30%   Number  visits:  intensive  care       14
  15. 15. Rental  of  cultural  heritage  sites   Rent:  one  ruble   per  square   meter  per  year   Subject  to   conserva;on   order   Rental  period:   up  to  49  years   Sale  of  rights   by  auc;on   High  investor   interest   15
  16. 16. Rental  of  cultural  heritage  sites   Discounted  rental   rates   -­‐  Discount  rental  rate  aSer  property  restored  and  rendered  fully  usable;   -­‐  Period  of  restoraLon  work:  up  to  5  years;   -­‐  Market  rental  rates  applied  during  restoraLon   Investor  interest   -­‐  -­‐  -­‐  -­‐  7  cultural  heritage  sites  aucLoned  since  April  25,  2012;   Total  volume  of  annual  rent:  49,846,157.6  RUR  (1,567,163  USD);   Final  value  of  rental  rights  exceeded  iniLal  value  by  an  average  factor  of  3.5;   For  one  site,  the  final  value  exceeded  the  iniLal  value  by  a  factor  of  15       Lot  documents  contain  the   fullest  possible  set  of   documents  to  restore  and   use  the  cultural  heritage   site   -­‐  -­‐  -­‐  -­‐  Technical  terms;   City-­‐planning  reference  for  land  plot;   Land-­‐registry  cerLficate  for  land  plot;   DraS  rental  agreement   A  list  of  property   available  at  auc;on  can   be  viewed  on-­‐line:   hJp://torgi.gov.ru   hJp://dgi.mos.ru   16
  17. 17. RENTAL  OF  CULTURAL  HERITAGE  SITES   “The Caryatid House” at 7 Pechatnikov Pereulok Let  for  12.15  RUR   (0.38  USD)  per  month   from  September  11,   2013  to  July  11,  2061,   to  a  private  individual   who  restored  the   building   17
  18. 18. Thank you for your attention! 18