Construction of a Roadside Service Complex along Federal Highway

Project goal is to provide different types of service on the south federal highway by construction of a Roadside Multifunctional Service Complex.

Purpose of Business: Construction and operation of multi-functional motorway complex, which includes:

Opportunities for development of the plot:
• Parking lot for cars and trucks
• Roadside fast-food shops (coffee shops, bistros)
• Hotel (mini-hotel, motel)
• Entertainment Complex (restaurant, bar, billiards, slot machines)
• Auto Service (repair service, tire replacement, car wash, car-parts)
• Shopping centre (food, household goods, construction materials)
• Gas station.

The complex will be situated on 2 ha (max. 3 ha) Plot Along Federal Highway M6 Moscow-Astrakhan, in the Southbound Direction (near Ryazan).

The land-use of the plot has already been re-registered: from agricultural to industrial use.

The electricity connection has been confirmed (up to 2 MW).

Administrative and human resources are available.

Sample project -http://www.autostolica.com

Investors can contact us on Merar to receive more information.

Demand is provided a large flow of vehicles in both directions, route M6, the population of nearby towns (up to 500 thousand. People in 4 cities of Ryazan region with forming enterprises) and the absence of any serious competition in this part of the route.

As well - lack of competition provided by the restriction on the issuance of land for construction.

Profitability of these systems according to the Russian business analysts, on average - from 30% to 50% (depending on the expensive side of the selected projects and expenses during the operation of complex, namely:
• Labour costs and payments to social services. Foundations;
• Operating costs;
• The cost of repairs and maintenance)
• Revenue ~ $ 2 - 3 per year

Payback - an average of 5 years (* taking into account the time for construction of structures and without regard to what the market value of the complex at the time of commissioning will increase to 2 times (i.e., already in effect pay for itself on the 3rd year).

Horizon calculation (duration of the calculation period) includes: The construction of buildings (~ 2 years) and its subsequent operation.

The amount of investment costs needed for building a site are:
• The cost of the project, and pre-construction activities including materials ~ $4M;
• Gardening, landscaping, parking cars, etc. ~ $0,7M;
• The cost of equipment and facilities ~ $1M.
• Purchase of land - $0,2M.

Total ~ $6M.

* The final cost may vary depending on the size and selection of specific projects