Government of Moscow

1 2013

INVESTMENT PROJECTS IN RUSSIA’S CAPITAL

CITY  INVESTMENT  PROJECTS  

Expanding the city’s hotel

network

Developing  facili;es  for  educa;on  

Cultural  heritage  sites  

Developing  healthcare  

infrastructure  

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THE  LAND  AUCTIONS  PROCESS  

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• 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  

Preparing  and  holding  aucLons  

LAND  AUCTIONS  FOR  NEW  CONSTRUCTION  

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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  

6  years  

Lists  of  land  plots  for  auc;on  are  posted  on-­‐

line:  

hJp://tender.mos.ru  hJp://torgi.gov.ru  hJp://dgi.mos.ru  

LAND  AUCTIONS  

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Sale  of  land  plots  by  auc;on  in  2013  

Sold  between  January  31,  2013  and  August  29,  2013   Scheduled  for  sale  before  the  end  of  2013    

Number  of  land  plots  

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   590,643,600   964,353,600   61.24%   33   1,601,817,700  

Sale  of  land  plots  by  auc;on  in  2011  &  2012  

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%  

Land  acquisi;on  trends  -­‐  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  

SALE  OF  CITY  PROPERTY  

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The  list  of  sites  available  by  auc;on  can  be  viewed  on-­‐

line:  

hJp://tender.mos.ru  hJp://torgi.gov.ru  hJp://dgi.mos.ru  

Lot  documents:  sufficient  informa;on  to  decide  

whether  to  bid  at  auc;on  

-­‐  DraS  rental  agreement;  -­‐  All  technical  documents  for  the  building;  -­‐  The  building  is  vacant,  both  de  jure  and  de  facto  

Chains  For  hotel  chains,  there  is  the  opLon  of  acquiring  several  properLes  in  one  lot  

HOTEL  SECTOR  DEVELOPMENT  

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Land  auc;ons  for  new  construc;on  

Reconstruc;on  of  exis;ng  property  

PROPERTY  PRIVATIZATION  

RECONSTRUCTION  &  RENTal  OF  EXISTING  PROPERTY  FOR  HOTEL  sector  use  

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Time  period  for  reconstruc;on  

-­‐  1-­‐3  years:  opLmal  -­‐  Over  3  years:  expensive  

Rental  terms  and  payment  procedure  

-­‐  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    

Inventory  of  city  property  suitable  for  hotel  sector    

Rental  rights  sold  by  auc;on  

PUBLIC-­‐PRIVATE  PARTNERSHIPS  IN  EDUCATION  

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Land  auc;ons  for  construc;on  

Investor-­‐funded  repair  &  rebuilding  of  exis;ng  educa;on  

facili;es  

Sale  of  city  educa;on  facili;es  to  investors  

DEVELOPMENT  OF  EDUCATION  INFRASTRUCTURE  BY  PUBLIC-­‐PRIVATE  PARTNERSHIPS  

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List  of  land  plots  and  real  estate  

hJp://tender.mos.ru  hJp://torgi.gov.ru  hJp://dgi.mos.ru  

Discounted  terms  for  the  rental  of  land  and  buildings  

used  for  educa;onal  purposes  

-­‐  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  

Auc;ons  sta;s;cs  

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  

Development  of  healthcare  infrastructure  

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PROJECT “THE DOCTOR NEXT

DOOR” CONCESSIONS

PROJECT  “THE  DOCTOR  NEXT  DOOR”  

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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  

-­‐  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;  

Area  of  premises    

From  150  to  450  square  meters  

Healthcare  infrastructure  development:  concessions  

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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;  

DEVELOPMENT  OF  HEALTHCARE  FACILITIES:  CONCESSION  

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CITY TEACHING HOSPITAL # 63

Sta;s;cs  Area  of  land  plot     20,109.0  square  meters    

Area  of  premises  for  reconstrucLon  

29,647.6  square  meters    

Term  of  concession  agreement   49  years  

DuraLon  of  investment  phase  (design,  construc2on,  ou3i4ng,  launch)    

4  years  

Planned  investment  costs,  total   4,374  million  RUR    

                   -­‐  Cost  of  reconstrucLon   2,884  million  RUR  

                   -­‐  Cost  of  equipment   1,490  million  RUR  

Share  of  mandatory  medical  insurance  (MMI)  services  

Between  20%  and  30%  

Medical  service   Total  volume  of  services  

Volume  of  MMI  services  

Number  of  surveys:  positron-­‐emission  tomography  center     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   6,600   Up  to  1,000  

Number  of  visits:  perinatal  center    

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  

Number  visits:  intensive  care       189,720   Up  to  25,000  

Rental  of  cultural  heritage  sites  

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Rent:  one  ruble  per  square  

meter  per  year  

Sale  of  rights  by  auc;on  

High  investor  interest  

Rental  period:  up  to  49  years  

Subject  to  conserva;on  

order  

Rental  of  cultural  heritage  sites  

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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  

RENTAL  OF  CULTURAL  HERITAGE  SITES  

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“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  

Thank you for your attention!

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