September

MOSCOW INVESTMENT DIGEST. September 2020

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The Moscow Department of Investment and Industrial Policy in cooperation with the Moscow City Investment Agency presents you the next digest of the main investment events in the capital.

NEWS

249 PPP CONTRACTS CONCLUDED IN MOSCOW WITH SUPPORT OF MOSCOW CITY INVESTMENT AGENCY

The Moscow City Investment Management Agency is 9 years old. Within all these years it has been providing assistance to Moscow investors at all stages of investment projects implementation in a one-stop mode.

Public-private partnership projects are also implemented with the Agency's participation. 249 PPP contracts have already been concluded. These are life cycle contracts, long-term investment contracts, concession projects. Their investments exceed RUR 1 tn. Production of drugs, food products, development of transport infrastructure are among the priorities.

Moscow Industrial Complexes Annually Save Up to RUR 2.2 BN

To date, the status of an industrial complex has been assigned to 56 Moscow enterprises, which allows them to save about RUR 2.2 bn per year. This is possible thanks to the tax benefits provided by the city.

For the last five years the total investments of Moscow industrial complexes exceeded RUR 36.2 bn. Savings allow companies to develop production, to improve working conditions, to master new technologies or markets

PHARMACEUTICAL PLANT PUT INTO OPERATION IN ZELENOGRAD

The first phase of the Biocad pharmaceutical plant was put into operation at the Alabushevo production site in Zelenograd.  The production was established as part of an offset contract with the Moscow Government signed in 2017. It obliges the Biocad company to build a high-tech pharmaceutical complex of 43,000 square meters by 2021. The investor put RUR 3+ bn into the production.

The company is planning to produce 40 oncological drugs. From 2021 to 2027, the Moscow Government will purchase products for its medical institutions for about RUR 2 bn.

The areas of secondary packaging and quality control will be put into operation this fall. The biological and chemical productions are planned to be launched next fall. In 2020, the company will supply 400,000+ packages of drugs.

INVESTOR WILL BUILD BUSINESS PARK IN MOSCOW

Moscow has signed the first agreement within the new city program aimed at stimulating the job creation. The project investor SZ Pioneer-1 will construct a 46,000-square-meter complex of office buildings Ostankino Business Park in the Butyrsky subdistrict by the end of 2023, which can potentially give the city 4,000+ new jobs. The planned investment volume will amount to RUR 2.3 bn.

As a result, the city will get new jobs and additional sources of budget revenue through property and profit taxes, and the developer - preferences and commercial spaces to generate potential revenue in future.

MODERN GERIATRIC CENTER WILL APPEAR IN MOSCOW

A geriatric center will be opened within the concession agreement in the Mozhaysky subdistrict of Moscow by 2022. This is the first concession project in Moscow and the Central Federal District.

For the center, the investor reconstructs a four-storey building of 3,000+ square meters in the Bagritsky Street. The boarding house is equipped with at least 100 beds for comfortable accommodation and rehabilitation of elderly people. The project intends to create 120+ jobs, and the estimated investment volume will be about RUR 500 m. The investor will not only reconstruct the building and equip it with necessary equipment, but also provide social and medical services.

Applications for the concession agreement tender are to be submitted by October 23. It is planned to chose the investor in February 2021.

Investors Will Invest about USD 100 Bn in Integrated Development of Moscow Industrial Zones

The Moscow Government is working on integrated development projects for industrial zones of approximately total 1,900 hectares. The redevelopment will be carried out exclusively with investors' funds without budget investments.

"This is a chance both for the investor to get a site and to develop their projects on it, and for the city - to put in order the territories that did not generate income and were unsightly, and sometimes dangerous for residents," Deputy Moscow Mayor of Economic Policy and Property and Land Relations Vladimir Yefimov said.

It is planned that the implementation of integrated area development programs will increase the city budget revenue by RUR 3 tn. Moscow will also get about half a million new jobs.

Korovino Industrial Zone Will Be Redeveloped within Agreement on Integrated Development of Industrial Area

Moscow will carry out the first Russian auction to conclude an agreement on the integrated development of industrial area. It will select an investor who will redevelop the Korovino industrial zone. This decision was made on September 17 at the meeting of the Urban Planning and Land Commission.

The redevelopment of two territories in the Korovino industrial zone with a total potential investment of RUR 15.7 bn was approved earlier, in August this year. The private investments in the new Korovino project may amount to RUR 40 bn, and this will also create up to 13,000 new jobs for the Muscovites.

The investor will have an opportunity to build public and industrial facilities with an area of 616,000+ square meters on a land plot of 35.37 ha.

MACROECONOMICS

TO ALL KEY REGIONS OF THE WORLD: MOSCOW BUSINESS IS INCREASING EXPORTS

Moscow companies continue to increase the exports of their products. The most popular sectors of non-resource non-energy export are production of machinery and equipment (48 destinations), production of vehicles and components (47 destinations) and metal processing and jewelry industry (46 destinations) as well.

Moscow export leaders covered all key regions in H1 2020: Europe and Asia, the USA and Latin America, the Middle East and Africa, Transcaucasia and CIS countries.

The regions differ in the range of products purchased. For example, European partners most often buy Moscow pharmaceutical products and automotive equipment, while mechanical equipment and machinery and food industry products are in demand in East Asia.

SUPPORT MEASURES

MOSCOW PROVIDED LOANS OF RUR 500 M TO MANUFACTURERS

In 2020, the city offered Moscow manufacturers a new support tool - an investment loan for production development. Total 6 loans were issued for the total amount of RUR 500 m. The recipients also were food industry enterprises, manufacturers of optics, security systems, control and measuring devices.

Thanks to these funds, companies can provide production with the necessary amount of raw materials, start new developments and related testing, and most importantly - save jobs.

AUCTIONS

IN 2020 MOSCOW SOLD 4.4 TIMES MORE CAR PARKING BAYS

From January to August of this year, 330 car parking bays were sold through the city auctions, 287 sales contracts have been already concluded. This is 4.4 times more than in the same period last year. The sale of parking spaces is in great demand among citizens and investors: 2,500+ buyers have claimed for their purchase this year. Most of the car parking bays - 104 units - were sold in East Moscow.

40 car parking bays are currently put up for auction in different districts of Moscow, the unit area varies from 10.6 to 64.3 sq. m. Lots are listed for sale without a price announcement, the bidders can identify their price during auctions.

SMALL BUSINESS CAN RENT UNIT IN MOSCOW CENTER AT DISCOUNTED RATE

The city will rent out a 87.5-square-meter unit in a residential building in the Presnensky subdistrict of Moscow at a reduced rate. The facility is located in an investment attractive area within walking distance of the Shelepikha metro station.

An electronic auction will be held among small and medium-sized enterprises or organizations that form the SME support infrastructure. The winner will get the unit in a 10-year rent to accommodate an office or administrative and educational institution and various public organizations as well.

The initial annual rent rate is RUR 415.6 m. Auction applications are to be submitted by October 23. The unit tenant will be determined on October 29.

INVESTORS CAN BUILD CAR SERVICE IN MITINO

The city announced a rent auction for a land plot of about one hectare in North-West Moscow in Mitino designated for the construction and operation of roadside car service. The initial annual rent rate for the land plot is RUR 9.4 m. It is surrounded by a dense multistorey residential area in Moscow and has good transport accessibility.

A 4.5-year rental agreement will be concluded with the auction winner, and the tenant shall complete all construction works during this period. The project will result upon completion in the transfer of 100% spaces of the constructed facility into the investor’s ownership. Auction applications are to be submitted by November 2. The auction will be held on October 5.

Over 5,300 city premises are available for sale and rent on the Moscow Investment Portal www.investmoscow.ru.

 

Thank you for your attention!

Moscow Department of Investment and Industrial Policy

www.mos.ru/dipp

Moscow City Investment Agency

www.investmoscow.ru

Supplier Portal

www.zakupki.mos.ru

The digest archive is available on the Moscow Investment Portal.

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