Industrial Park with Residential Area Seeks for Businesses to Move in

An industrial park in the Municipality of Shchekino invites manufacturing and logistics companies willing to start or expand operations in Russia to move in.

Interested parties are offered to purchase the respective land plots at book value whereas infrastructure and administrative issues will be taken care of by the project owners backed by the government. Equity participation in the park or loan provision to support the project implementation could also be considered.

TI Park’s area is 1.386 million square meters located in the Municipality of Shchekino, 25 km south of the city of Tula, 225 km from the international airports of Moscow. The territory of the park will be divided into two main areas: and Industrial and Logistics (700,000 square meters), and an Administrative and Residential area (686,000 square meters). The concept is to bring together all aspects of the industrial live, thus capitalizing on synergy effects.

The project is already in progress. The land has been purchased and all necessary plans, designs, assessments and permits are readily available. A contract under federal for part of the residential area has been conducted with the government and the work has been completed.

The current proposal aims at identifying potential customers for the Industrial Area of the Park.
The Park will house approximately 25 small and medium-sized enterprises, as well as necessary commercial space for various services. The proposal targets sectors such as textiles, clothing, food, pharmaceuticals, furniture, home repair materials, technologies, and appliances but is open to other as well.

Industrial sites (or retail spaces) will be sold at book value, the infrastructure being provided to the buyers as per their individual requirements. The maximum size of the land plot to be purchased is set at 700 decares (173 acres) but could be extended potentially.

The park is owned by a joint stock company established in 2011 to manage the project. The General contractor executing the project participates in the managing company’s ownership. Credit lines have been agreed with a Russian commercial bank to provide additional funding for the project. Parties interested in providing debt finance to the project or acquiring a share in the business are also welcome to contact us.

Innovative and economically-oriented concept:

The park is the first of its kind in the region. Its main advantage against the existing and projected industrial parks is its multifunctional development plan combining production and logistics infrastructure with a modern residential complex. As a result, with the very start of construction there will be immediate sources of labour and demand for the Park’s production. Furthermore, the project fosters innovation and synergy effects among the companies within the park.

Location advantages:

• Proximity to the administrative center of Tula; federal and international transport corridor Moscow - South, proximity to markets of Moscow and the Central Federal District
• Available land for agricultural and industrial development, housing construction
• Available minerals (refractory clays, carbonaceous deposits, deposits of sand, iron ore, bauxite, and etc.)
• Considerable potential for cultural development, creation of tourist and research centers
• Already started construction of an air cargo terminal 45 km from the Park

Experienced team:

The founders of the company are well known with the realization of projects of public importance. They have implemented a significant number of private and public projects, including master plans of cities in the European Union and beyond. The General contractor of the project has rich experience in construction projects across number of countries and industries.

Government support for the project:

Right from the beginning the TI-Park Project has been actively supported by the Administration of Tula region and Shchekino Municipality. Presentation of the Project took place at the III Tula Economic Forum and in the Administration building of Tula region to the local parliament and the public. The project is included in the List of top priority projects of strategic importance for the region. The project was developed to be feasible for participation in federal programs.

Additional benefits to the buyers:

• Low land plot price: The industrial plots will be sold at book value.
• No infrastructure costs: The project development and execution company will provide the whole infrastructure needed by the buyers in accordance with their specific requirements. After the industrial facility is developed the infrastructure costs will be reimbursed by the government.
• No administrative costs: The project development and execution company will take care of construction permits, custom-house entries and other administrative work to be done on behalf of the clients, thus saving time, money and efforts and guaranteeing maximum effectiveness.
• No risk: The successful execution of the project is guaranteed with regard to the Government support and the already incoming revenue streams from the Residential Area.

The underrepresented SME segment and the economic dominance of several industries in Russia have been considered limitations for the economy’s growth. Solving these deficiencies, as well as meeting the demand for affordable housing are set as key priorities within national and regional Government strategies. Policies stimulating technological, industrial, residential and SME developments are already on the go. Respectively, the demand for industrial space and residential construction is increasing and projects focusing on these topics are meeting the support of state authorities.

The current project addresses the identified gaps and uses the opportunity of the friendly business environment. TI’s solution is to bring together manufacturing infrastructure, logistics, residential infrastructure, and legal, managerial, administrative, etc. services in one territory, thus fostering synergy effects and guaranteeing advantages to everyone.

Objectives of the TI Park:
• Attracting both local and international innovative companies
• Building capacity for more than 25 companies
• Creating a sustainable eco-environment to promote individual self-development
• Establishing TI Park as the scientific and technological and economic model for other regions of Russia
• Enhancing technological development and export potential of the Tula Region

The TI Park has the following main revenue streams:
• Government contracts under Federal Housing programs (Residential Area)
• Individual construction contracts (Residential Area)
• Sales of industrial sites (Industrial Area)
• Sales of commercial space (Industrial Area)

The current proposal aims at identifying potential buyers of the industrial land plots.

In case of equity participation/debt funding the amount invested will be used for the project progress.

We are looking for investors to purchase industrial sites within the park. Our main target group is the SMEs willing to establish operations in the region, both local and foreign origin.

There is no minimum size of the land plots to be purchased; the upper limit is currently set at 700 decares. The sites will be offered at book value (no rate of return assumed). Investors will be offered to acquire the land for their companies in instalments. Industrial land plots are to be sold at EUR 10 per m2 and the price for commercial and residential land plots will be EUR 50 per m2.

In addition, the project management JV could consider debt or equity investment proposals by serious investors.