DGAP-News: OJSC DIXY Group: DIXY GROUP AND PNK GROUP HAVE SET UP RUSSIA–S BIGGEST DEAL ON THE BUILT-TO-SUIT WAREHOUSE MARKET

EquityStory.RS, LLC-News: OJSC DIXY Group / Key word(s): Real
Estate/Contract
OJSC DIXY Group: DIXY GROUP AND PNK GROUP HAVE SET UP RUSSIA–S BIGGEST
DEAL ON THE BUILT-TO-SUIT WAREHOUSE MARKET

15.09.2011 / 15:00

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DIXY Group and PNK Group development company have signed a built-to-suit
agreement on construction of a distribution center. The amount of
investment in the project exceeds RUR 2.6 billion. Cushman&Wakefield was
involved in the transaction as a consultant.
The terminal of 44,000 square meters will be built in total compliance with
DIXY–s technical requirements in the Vnukovo district of Moscow Region. The
warehouse split into several temperature zones will provide optimum
conditions for the storage of more than 4,000 items of goods, while
cross-docking will ensure convenient logistics within the area.
In the process of construction PNK Group will apply a number of innovative
developments borrowed from abroad and tailored to Russian environment,
e.g., cooling equipment using ozone friendly non-toxic and non-combustible
Freon R057. The lighting system is based on LED and equipped with motion
sensors, thus reducing power consumption more than three-fold. The
construction is scheduled for completion within a record period – in just
nine months.
This distribution center will be the Russia–s first one to meet Factory
Mutual Global standards (FM Global). These standards have been developed by
worldwide leading insurance companies and provide special requirements for
fire safety, integrity of building structure, etc. As of this day the FM
Global standards have been adopted by more than 100 countries and since
they came into effect, many major international players, such as Mars, have
committed themselves not to lease warehouses which do not meet the new
safety requirements.
Ilya Yakubson, President of the DIXY Group pointed out: –This distribution
center will become the largest one in the DIXY–s logistic structure, and
will meet the Company–s needs with regard to a substantial growth of trade
operations in the Central Federal Area subject to integration of Victoria
chain scheduled for 2012. Investments in logistics and technologies are a
major contribution to the effective growth of a trade company, and that is
primarily true for food retail, since logistics is one of the major factors
of the operator–s competitive edge–.
–This is already the fifth built-to-suit project of our company as we offer
to the customer a comprehensive customized turn-key solution and commit
ourselves to the entire range of works – from design to implementation and
servicing of the built facility – says PNK Group Managing Director Oleg
Mamayev. – The total area of built-to-suit projects implemented by PNK
Group amounts to 145,000 square meters. The experience of cooperation with
major foreign and Russian companies, such as Uhrenholt Logistic, TVOYO,
Eldorado, Rosnano – puts us in position to implement most complex projects
within unprecedentedly short time while taking into account each
requirement of the customer–.
–The deal between PNK-Group and DIXY proves that built-to-suit projects
have finally taken shape as a separate segment of the warehouse real estate
market. Market situation in the Moscow region actually makes such
transactions the only opportunity for big tenants to acquire by way of
ownership or lease a modern storage facility with ideal location, good
technical parameters and in guaranteed time, – says Egor Dorofeev, Partner,
Head of Warehouse and Industrial Department at Cushman&Wakefield -such
deals are rather complex as they require thorough fine-tuning and
preparation by all parties working on the project. DIXY applied strict
requirements for the technical specifications of the future distribution
center, and thanks to the expertise of PNK-Group and DIXY project team such
requirements were agreed within short period of time, facilitating the
start of construction forthwith upon signing of the contract–.

Information:
DIXY Group (RTS, MICEX: DIXY) is one of Russia–s leading retailers of foods
and everyday products.
The first DIXY store opened in 1999 in Moscow and, after the period of
intense organic development and purchase of Victoria Group in June, 2011,
as of August 31, 2011, the Group operated 994 stores, including 722 DIXY
neighborhood stores, 228 stores under the –Kvartal–, –Deshevo–, –Semeynaya
Kopilka– brands, 20 Victoria supermarkets, 15 MEGAMART (compact
hypermarket) stores, 8 MINIMART (supermarket) stores and 1 CASH
(cash&carry) store.
The Company operates in three Federal Districts of Russia: Central,
Northwest, Urals, and in Kaliningrad region.
As of August 31, 2011, the Company had a total of 369,431 square meters of
selling space. The Company is the third largest among Russian national
retail operators in the food retail market by revenue, selling area and
number of stores and employs more than 32,000 people.
In May 2007 the Company raised USD 360 million in its IPO on the RTS and
MICEX. A controlling stake in DIXY Group, OJSC (54.4%) is owned by the
Mercury Group of Companies, a diversified holding company.
In 2010, DIXY–s total revenue reached RUR 64.7 billion; Victoria–s total
revenue reached RUR 32 billion.
The Russian business magazine Expert rates DIXY Group as one of the Top-100
largest Russian companies.

End of Corporate News

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