KPMG services for Real Estate and Construction

KPMG in Russia and the CIS

kpmg.ru

1 2Today, as the financial crisis evolves and the economic environment remains unstable, it is vital for businesses to have mechanisms in place that enable them to timely identify emerging trends, analyse current processes, and respond to changes in their organisation and the economy.

KPMG offers services that will help you select the necessary tools to analyse and control your operations and to set up all your systems in such a way as to promptly identify any risks and to prevent potential issues arising.

Our real estate and construction team has a long-established presence on the Russian market, and we have repeatedly demonstrated how our knowledge and capabilities can be of considerable benefit to our clients.

We aim to be your trusted business partner, respond to your requests in a timely manner, provide thoroughly worked-out solutions, and add value.

Svetlana Fonareva

Head of Real Estate and Construction Partner,

KPMG in Russia and the CIS

Foreword Comprehensive approach: Our services to Real Estate and Construction companies

Market entryAsset acquisitions and management

— Analysing investment attractiveness, opportunities and ways to enter new markets; developing an optimal organisational structure

— Market analysis, elaborating a development strategy, and financial modelling

— Advising on establishing joint ventures; searching for business partners

— Developing an optimal organisational structure

— Developing an effective tax structure

— Performance analysis / developing employee compensation schemes

— Establishing a treasury function

— Advising on choosing IT platforms for financial and tax accounting

— Developing and/or setting up budgeting systems / customer relations modules

— Legal support

— Mergers and acquisitions advisory services

— Due diligence (financial, legal, tax, operational, marketing, technical)

— Asset or business valuations for acquisition purposes

— Developing project feasibility studies

— Project finance advisory services, developing business plans and investment memoranda, assisting in fundraising

— Integrating acquired assets into the business

Our services: A comprehensive approach to the project investment cycle

2 | KPMG services for Real Estate and Construction

© 2019 KPMG. All rights reserved.

— Marketing analysis of the competitive environment / market analysis

— Project location analysis

— Project concept development / analysis

— Preliminary assessment of investment costs and investment appeal analysis

— Elaborating a project implementation strategy

— Technical, financial, tax and legal due diligence of a site/facility

— Preparing an investment cost budget

— Preparing a feasibility study and financial modelling

Project ideaAcquisitions and raising finance

3 4 5

Comprehensive approach: Our services to Real Estate and Construction companies

Day-to-day operations and achieving results

Restructuring, refinancing, and divesting

Sale of the company and market exit

— Advising on finance and tax issues, legal reorganisation, and restructuring

— Advising on cost reduction and management

— Assisting in raising finance and debt restructuring

— Risk management advisory services

— Advising on the allocation of existing property assets

— Asset or business sell-side due diligence

— Market or liquidation valuations

— Assisting in finding buyers

— Tax and legal support

— Financial statement audits

— Advising on preparing financial statements

— Analysing asset performance efficiency; optimisation of investment portfolio

— Assisting in entering securities markets (IPOs)

— Performing background checks on potential business partners

— Performance analysis of the procurement, construction and management processes

— Assessing / setting up an internal control system

— Analysing internal audit efficiency

— Technical and technological audits

— Price audits

— Automation of budgeting and accounting

— Information protection and cyber security

— Preparing transfer pricing documentation

— Advising on compliance with tax legislation

Our services: A comprehensive approach to the project investment cycle

© 2019 KPMG. All rights reserved.

KPMG services for Real Estate and Construction | 3

— Developing a construction project concept and main control procedures

— Analysing the technical specifications of the design

— Comprehensive management of the construction project (Project Office)

— Analysing the design solutions

— Holding tenders to choose main project participants, including the general contractor

— Analysing project documentation/budgets/schedules

— Regular monitoring of the construction project (financial and technical supervision)

— Quality/cost/construction time management

— Technological and price audit of the project

— When entering the project at the construction phase – technical/engineering/financial/legal due diligence

— Analysing the performance efficiency of the facilities

— Advising on organising the work of the management company

— Optimising income / expenses arising from the operation of facilities

— Advising on tax and legal issues

— Analysis of strategic exit options

— Facility valuations / preparing expert appraisals

— Assistance in finding investors and preparing information materials, including information memoranda

— Financial, tax, and legal support

Construction Commissioning Exit

KPMG in Russia and the CIS

Lviv

Minsk

Ufa

KievRostov-na-Donu

TbilisiYerevan

AtyrauNur-Sultan

Tashkent

Saint Petersburg

MoscowNizhny Novgorod

EkaterinburgPerm

KrasnoyarskNovosibirsk

Kazan

Baku BishkekAlmaty

ContactsReal Estate and Construction Practice

Svetlana Fonareva Head of Real Estate & Construction KPMG in Russia and the CIS Partner T: +7 495 937 4492 E: sfonareva@kpmg.ru

Sven OsmersReal Estate AdvisoryKPMG in Russia and the CISPartnerT: +7 495 937 4477 E: svenosmers@kpmg.ru

Svetlana Skripnik Tax & LegalKPMG in Russia and the CISPartner T: +7 495 937 2264 E: sskripnik@kpmg.ru

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

© 2019 KPMG. KPMG refers JSC “KPMG”, “KPMG Tax and Advisory” LLC, companies incorporated under the Laws of the Russian Federation, and KPMG Limited, a company incorporated under The Companies (Guernsey) Law, as amended in 2008. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

kpmg.ru

Our officesKPMG in RussiaHead Office, Russia and the CISMoscowT: +7 495 937 4477

North-West Regional CenterSaint Petersburg T: +7 812 313 7300

Volga Regional CenterNizhny Novgorod T: +7 831 296 9202

Siberia Regional CenterNovosibirskT: +7 383 230 2255

Urals Regional CenterEkaterinburgT: +7 343 253 0900

South Regional CenterRostov-na-DonuT: +7 863 204 0050

Republic of TatarstanKazan T: +7 843 210 00 90

Far East PracticeVladivostokТ: +7 423 265 9977

KPMG in BashkortostanUfaT: +7 347 226 44 77

VoronezhT: +7 473 220 44 77

KrasnoyarskT: +7 391 257 0400

PermT: +7 342 259 4400

In the CISArmeniaYerevanT: +37410 56 6762

AzerbaijanBaku T: +994 12 404 89 10

BelarusТ: +375 17 372 72 57

GeorgiaTbilisiT: +995 322 93 57 13

KazakhstanAlmatyT: +7 727 298 08 98

Nur-SultanT: +7 7172 55 28 88

AtyrauT: +7 7122 55 62 00

KyrgyzstanBishkekT: +996 312 623 380/034

UkraineKievT: +38 044 490 5507

LvivT: +380 32 229 5905

UzbekistanTashkentТ: + 998 78 147 77 44

* RAEX (Expert Rating Agency), Largest Audit Organizations, in 2009–2018

Voronezh

Vladivostok