DMITREY MEDVEDEVPRESIDENT OF THE RUSSIAN FEDERATION:
«Land must be made to serve residential construction».
VLADIMIR PUTINTHE PRIME MINISTER OF THE RUSSIAN FEDERATION:
«Developers must be given the maximum choice ofland plots with all necessary infrastructure, includingroads. We are counting on the Housing DevelopmentFoundation to help achieve this».
KEY ISSUES
KEY ISSUES
IS IT SAFE TO INVEST IN RUSSIA?
WHO GUARANTEES LEGALITY OF LANDTRANSACTIONS IN THE RUSSIAN FEDERATION?
IS THE RUSSIAN INVESTMENT MARKET COMPETITIVE?
ARE THERE ANY GUARANTEES THAT INVESTMENTS IN THE RUSSIAN FEDERATION WILL BE SUCCESSFUL?
HOW CAN BUREAUCRATIC OBSTACLES BEOVERCOME?
ARE DIFFERENT STRATEGIES REQUIRED WHEN INVESTING IN SEVERAL REGIONS?
THE RHDF’S SERVICES: A NEW PRODUCT ON THE RUSSIAN NVESTMENT MARKET
LAND PLOTS
SUPPORT IN PROJECT IMPLEMENTATION
A BETTER RETURN ON INVESTMENTS
BY WORKING WITH THE RUSSIAN HOUSING DEVELOPMENT FOUNDATION
YOU RAISE YOUR LEVEL OF SECURITY WHEN INVESTING IN RUSSIA
YOU OBTAIN GUARANTEES OF THE LEGALITY OF LAND TRANSACTIONS IN THE RUSSIAN FEDERATION
YOU OBTAIN ACCURATE INFORMATION ABOUTCOMPETITIVENESS OF THE MARKET
YOU RAISE THE COMMERCIAL EFFICIENCY OF YOUR INVESTMENTS IN THE RUSSIAN FEDERATION
THE RUSSIAN HOUSING FOUNDATION HELPSTO LOWER BUREAUCRATIC BARRIERS
YOU OBTAIN A STANDARD MODE OF OPERATIONFOR INVESTMENTS IN ANY REGION
RUSSIAN HOUSING DEVELOPMENT FOUNDATION
FINANCIAL SUPPORT.ASSISTANCE WITH
FINANCINGBY INVOLVEMENT
OF FINANCIALINSTITUTIONS
THE FOUNDATIONGUARANTEES
LEGALITYOF ANY OPERATIONS
WITH LAND
FULL SUPPORTFOR INVESTORS.
GUARANTEED EXECUTIONOF COMMITMENTS
OPERATIONS IN ALL RUSSIAN REGIONS
REMOVING ADMINISTRATIVE BARRIERS:
ASSISTANCE IN PROJECT IMPLEMENTATION
AT REGIONAL AND LOCAL LEVEL
SUPPORTING TRANSACTIONS WITH OUR CLIENTS
MAKING AN AGREEMENT
SIGNING AN ACTION PLANFOR RESIDENTIAL CONSTRUCTION
WITH THE REGIONALGOVERNOR
AUCTION SCHEDULE
AUCTION
ASSISTANCEWITH TOWN PLANNING
DOCUMENTATIONAND ARCHITECTURAL/
CONSTRUCTION DESIGNSTIMULATING
DEMAND
ASSISTANCEWITH CONNECTION
OF UTILITIES AT PLOTS
MONITORINGIMPLEMENTATION
ASSISTANCEWITH FINANCING
HOW THE FOUNDATION OPERATES
GEOGRAPHY OF THE FOUNDATION’S OPERATIONS
OUR PARTNERS
GOVERNMENT BODIES
THE FEDERAL SERVICE FOR STATE REGISTRATION,
CADASTER AND CARTOGRAPHY
THE FEDERAL AGENCY FOR PROPERTY MANAGEMENT
THE ACCOUNTS CHAMBER OF THE RUSSIAN FEDERATION
THE FEDERAL SERVICE FOR FINANCIAL AND BUDGET
SUPERVISION
THE MINISTRY OF ENERGY OF THE RUSSIAN FEDERATION
NATURAL MONOPOLIES
OJSC FEDERAL GRID
COMPANY, UNITED ENERGY
SYSTEM
OJSC INTER-REGIONAL DISTRIBUTIVE
GRID COMPANIESHOLDING
OJSC GAZPROM
STATE CORPORATIONS
FOUNDATION FOR REFORM OF THE HOUSING UTILTIES
SECTOR
BANK FOR DEVELOPMENT AND FOREIGN ECONOMIC
ACTIVITY (VNESHECONOMBANK)
NON-PROFIT ORGANIZATIONS
NAMIX NON-PROFIT PARTNERSHIP
OJSC AGENCY FOR MORTAGAGE FINANCING OF REAL
ESTATE
OJSC SAVINGS BANK OF
THE RUSSIAN FEDERATION (SBERBANK)
BANKS AND FINANCIAL STUCTURES
KEY STEPS FOR DEVELOPMENT OF THE FOUNDATION IN 2010-2014
CREATION AND DEVELOPMENT OF A UNIFIED INFORMATON AND RESEARCH SYSTEM
IMPROVING TECHNOLOGIES FOR PROVISION OF LAND PLOTS FOR RESIDENTIAL AND OTHER DEVELOPMENT
ENSURING THAT LAND PLOTS ARE PROVIDED WITH UTILITY INFRASTRUCTURE
ENSURING THAT THE RHDF’S LAND PLOTS HAVE NECESSARY TOWN PLANNING DOCUMENTATION
SUPPORT FOR FINANCING
STIMULATING DEMAND
SUPPORTING DEVELOPMENT OF THE CONSTRUCTION MATERIALS INDUSTRY AND OF CONSTRUCTION TECHNOLOGIES
PROJECT:
• Area of the land plot is 98 hectares;
• The lease agreement is for 11 years;
• Maximum time, in which residential construction, other construction and construction of engineering (utility) infrastructure is to be completed, is 11 years;
• Initial price for the right to make a lease contract is $191,808 per hectare per annum;
• Lease payment in the first year is $6,455 per hectare per annum;
• Lease payment in the remaining period is $12,910 per hectare per annum;
• Residential floor is 618,000 sq m;
• IRR is 29%, NPV is $26,614
EXAMPLE OF THE PROJECT IMPLEMENTED IN TYUMEN
DEMAND INDICATORS
Economy class
Business class
Elite
sq m
0,000
200,000
400,000
600,000
800,000
1 000,000
1 200,000
1 400,000
1 600,000
1 800,000
2010 2011 2012
IRR NPV
Single Player RHDF partnership
% $ million
COMPARISON OF INDICATORS WITH AND WITHOUT RHDF INVOLVEMENT
0%
10%
20%
30%
40%
50%
0
5
10
15
20
25
30
PROJECT:
• Area of the land plot is 6,3 hectares;
• The lease agreement is for 5 years;
• Maximum time, in which residential construction, other construction and construction of engineering (utility) infrastructure is to be completed, is 5 years;
• Initial right for the price to make a lease contract is
$67,797 per hectare per annum;
• Lease payment in the first year is $14,319 per hectare
per annum;
• Lease payment in the remaining period is $32,217 per hectare per annum;
• Residential floor space is 68,224 sq m;
• IRR – 32%, NPV – $1,429 288
EXAMPLE OF A PROJECT IMPLEMENTED IN CHEBOKSARY
DEMAND INDICATORS
0,000
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2010 2011 2012
sq m
Economy class
Business class
Elite
IRR NPV
Single Player RHDF partnership
COMPARISON OF THE INDICATORS WITH AND WITHOUT RHDF INVOLVEMENT
0%
10%
20%
30%
40%
50%
0
400
800
1200
1600
2000
% $ Thousands
• Preparation of the land plot for auction
• Holding the auction and signing the agreement
• Design, approval and signing of a plan of project measures
• Provision of guarantees to buy up to 25% of floor space, provided that the new property meets criteria for economy class residential property (set by the Ministry for Regional Development)
ROLE OF THE RUSSIAN HOUSING DEVELOPMENT FOUNDATION
• Support for implementation of the investment project, by coordinating:
Execution by government agencies, natural monopolies, financial and other organizations of their duties for development of land plots
Provision of engineering (utility) infrastructure of the plot
Provision of the mortgage credit to property buyers by the Agency for Housing Mortgage Lending and banks, and assistance to the developer in finance sourcing
Use of standard projects at the land plot
• Speeding up preparation and issue of enabling documentation, and conduct a state expert approval
• Rapid issue of technical conditions for connection to heat networks and external electricity supply
• Construction of social infrastructure
• Assistance with provision of engineering (utility) infrastructure at the plot
ROLE OF REGIONAL GOVERNMENT
Alexander ZhukovDeputy Chairman of the RussianFederation (Chairman of the Board ofTrustees
Elvira NabiullinaMinister of Economic Developmentof the Russian Federation (DeputyChairman of the Board of Trustees)
Kirill AndrosovDeputy Head of the Office of theGovernment of the Russian Federation
Vladimir DmitrievChairman of the State Corporation,“Bank for Development and ExternalEconomic Activity” (Vnesheconombank)
Svetlana OrlovaDeputy Chairman of the FederationCouncil (Upper House of the FederalAssembly of the Russian Federation)
Martin ShakkumChairman of the Committee of the StateDuma (Lower House of the FederalAssembly of the Russian Federation) forConstruction and Land Relations
Arkady DvorkovichAssistant to the President of the RussianFederation (Deputy Chairman of theBoard of Trustees)
Victor BasarginMinister of Regional Developmentof the Russian Federation (DeputyChairman of the Board of Trustees) Alexander Braverman
General Director of the RussianHousing Development Foundation
Igor KuzinDirector of the Department for BudgetPolicy in Sectors of the Economy atthe Ministry of Finance of the RussianFederationКузин
Gennady BinkoDeputy General Director of OJSCInter-regional Distribution GridCompany Holding
MEMBERSHIP OF THE BOARD OF TRUSTEES OF THE RUSSIAN HOUSING DEVELOPMENT FOUNDATION
BUILDING 1, 4 SLAVYANSKAYA SQUARE, MOSCOW, 109074TELEPHONE: +7 (495) 685-94-40 FAX: +7 (495) 698-41-40EMAIL: [email protected]: WWW.FONDRGS.RU