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.

1. Government of Moscow
INVESTMENT PROJECTS IN RUSSIA’S CAPITAL
2013
1

2. Expanding the
city’s hotel
network
Developing
healthcare
infrastructure
CITY
INVESTMENT
PROJECTS
Cultural
heritage
sites
Developing
facili;es
for
educa;on
2

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. 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. 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. 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. HOTEL
SECTOR
DEVELOPMENT
Reconstruc;on
of
exis;ng
property
Land
auc;ons
for
new
construc;on
PROPERTY
PRIVATIZATION
7

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. 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. 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. Development
of
healthcare
infrastructure
PROJECT “THE
DOCTOR NEXT
DOOR”
CONCESSIONS
11

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. 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. 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. 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. 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. 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. Thank you for
your attention!
18