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Thursday, June 14, 2007

TMM Is Going To Logistic

Actually, we all know that well-known developer TMM is residential, office and retail player. But now they intend to go further. Company released information that they plan to build about 10 logistic complexes in Kiev region with USD 7 mln. cost each of them.

According to market information, the construction of the first complex could start as early as next year.

Now, the cost of logistic construction is USD 700, at least. And if we will take a standard size for such project, which could be around K10-15 sqm, so minimal investments in every single complexes will USD 7 mln at least, depending from type of property.

Of course, such "big fish" could not pass through great demand for logistic. From several assumptions the demand for free spaces can increase up to 1 mln. sqm.

"This market segment Western investors considered to be less risky than residential. Moreover, the profitability of construction of warehouses is acceptable to us. So we are planning to diversify our portfolio, "says CEO of TMM Nikolai Tolmachev.

Regarding funds for the project, they are likely to be obtained through the IPO, as I posted recently.