Mall "Monarch Plaza"
Presented: Vitaflex Ltd.
Sector: Development, Commercial real estate, Retail objects
Region: CIS, Republic of Belarus
Investment amount: 32000000 USD
Projects ID: PRJ000284
ENTERPRISE AND REAL ESTATE SALES OFFERWITH
Presented: Németh Csilla
Sector: Industry, Rural economy, Food industry, Livestock farming
Region: Abroad, Hungary
Investment amount: 5700000 Еuro
Projects ID: PRJ000340
Construction of youth - student hostel
Presented: Yerevan Medical Institute after Mehrabyan
Sector: Development, Culture, Commercial real estate, Hotels, Education
Region: CIS, Republic of Armenia
Investment amount: 2500000 USD
Projects ID: PRJ000362
22 320 000 USD
Project "Launching the Production of
Prefabricated Buildings Based on Light Gauge Steel Framing (LGSF)",
The essence of the project: creation of automated
plant - a leader in the sphere of integrated production of load-bearing
frames of buildings up to 6 stories high (machinery production). The proposed
integrated manufacturing technology LGSF has nothing to do with technology of
cold-molded production of light profiles of galvanized steel, that is not
widely spread due to noncompliance of quality and price of the products with
modern construction requirements (expensive with poor quality).
The global positioning of the LGSF production -
clean environmental friendly technologies (no additional measures needed for
the environment protection).
Innovation: integrated software for frames of
buildings design and their production on the automated line.
Patents of Finnish and USA Companies on a method
of connecting cold-molded steel profiles into frameworks and on technological
equipment that makes the connection.
Production capacity: up to 500 thousand square
meters of real estate a year in form of frames.
The project is designed for the regions of
Siberian Federal District, but is also relevant for the whole CIS. The project
combines in itself main streams of socio-economic development: technological
and managerial innovations, industrialization of production and construction of
residential, commercial and other property, participation in national priority
The set of equipment is chosen in such a way as
to ensure the company a competitive advantage in the market and product
diversification in real estate markets (residential, commercial, industrial) to
reduce investment risks.
Products (part of the products is new to the
Russian market, i.e. there are no direct competitors):
- Sets of cold-molded galvanized steel profiles,
rolled according to the projects of buildings and that have a number of
improvements in joining into frameworks, laying pipes and cables, and more;
- Frames of buildings: load-bearing walls,
floors, roof trusses;
- Building envelopes of high factory readiness
(with a possibility of installing windows, doors, ventilated facades).
The products of the highest accuracy of
machine-building fully correspond to the modern world idea of energy saving,
environmental friendliness, aesthetics and technological effectiveness.
The principles of maximum automation of the
production processes and management processes, achievement of superior
performance and competitiveness of the company on domestic and foreign markets
lay in the heart of the company production organization.
The Project strategy provides establishment of
assembly plants in SFD regions, on the basis of which organization of network
of high readiness products and product diversification in real estate markets
and related areas.
- Creation of investment, production and
construction holding with producers of the best modern building materials,
construction companies, developers and other interested companies. Such holding
would allow to: reduce the cost of one square meter of real estate by means of
optimization and international certification of holding companies business
processes; create public-private partnerships in key regions for large developer
and building projects realization; develop the mortgage lending on the basis of
modern technologies of rapidly erected buildings and life supporting
- Active participation in the implementation of the
priority government project "Affordable and Comfortable Housing for
Russian Citizens" and other government programs and projects;
- Initiation and implementation of major
development projects of comprehensive territory development;
- Attraction of available funds (government,
corporate, international) into regional projects;
securities of the holding on stock exchanges in the Russian Federation and
abroad is planned.
Strategic Business Plan (SBPl) consists of the
- Book 1 of the project SBPl - 77 pages;
- Book 2 of the SBPl, technology and assessment
of the cost of construction - 13 pages;
- Book 3 of the SBPl, marketing research report -
Scenario of the Project:
A scenario with building of new production on 4
hectares parcel of land is selected as a main one.
Total cost is 22.32 million U.S. dollars.
The main participants of the project are:
initiators; investor and developer, providing services in a form of a
collateral of 130 hectares of land that he owns in order to have an opportunity
to credit purchasing of the main technological equipment. Obtaining of a loan
in a Finnish bank for SPV company on securities of ECA is planned.
The structure of financing: Owners’ funds
(authorized share capital) - 4.46 million U.S. dollars; Credit Resources - 17.86
million U.S. dollars.
The proposed financial model is the most
effective one because according to the law of the Russian Federation getting
direct investment in the form of technological equipment for $1.5 million US
dollars allows to save investment funds.
Realization of the pilot project on comprehensive
territory development using LGSF technology is planned on 130 hectares of land
owned by the developer after the launch of own production (the formation of
An independent market research is carried out, a
strategic business plan for the project is developed, the company for the
project realization is created, its web site, logo, etc. are designed.
Negotiations with the manufacturers of the technological
equipment are held, agreements to supply and use the intellectual property are
The negotiations are held, a number of letters of
intent concerning formation of loan collateral, building orders of products
portfolio and creation of regional assembly plants and sales network are
An agreement with the Government of the
Novosibirsk region (NR) is reached concerning signing of an investment
memorandum for provision of a number of preferences for the Project (½ of the
loan interest rate repayment, exemption from subject of federation taxes, formation
the plant products sales in social housing building) in accordance with the
laws of the Novosibirsk Region.
Negotiations are held, an agreement on the Project
replicating in the Kirov region of Russia is signed.
Negotiations with interested parties concerning
the Project financing in the amount of 20% from the total investment needs (4.46
million US dollars) are continued. Some of these companies already build
low-rise villages and high rise buildings with enclosing structures from LGSF
and are going to consider their future participation in the creation of several
LGSF plants in Russian regions.
The first round of negotiations with the largest
foreign investor willing to participate in the project if it [the Project] has
the main sponsor (senior partner / investor) is finished.
The search for an interested investor (Russian /
foreign) is continued.
The main investment proposal for participation in
this project is to sell up to 49% of the share capital to the project
participants and to raise loans for the amount of 17.86 million US dollars.
An investor can quit the project in 4 - 6 years
from the date of investment by selling his share to other partners or
interested investors on the stock market.
Summary of the project, presentation of the
technology and design and discussion of all possible scenarios and financial
models are available upon request. Should you be interested in the Project, a
strategic business plan can be sent for examination, its actualization can be
done according to the scenario agreed on with you.
Key economic indicators
- Completion term - 10 years
- Breakeven term - 4.2 years
- Total profit - 166 000 000 USD
- Net present value (NPV) - 43 392 000 USD
- Internal rate of return (IRR) - 53 % per annum
When constructing the process model of the Company
the concept of the value added chain IBL (the International Business Language)
Organizational Structure is divisional, project-oriented
(management of large part of the works will be fulfilled using project methods,
i.e. implementation of local projects: creation of public-private partnerships,
creation of holding, realization of a number of major marketing projects.)
Staff of the plant consists of 100 people. Work
is performed in three shifts. Production is characterized by the highest level
of process automation and control (ERP & CMR).
Highly qualified permanent staff will be secured
- Effective system of incentives;
- Motivation of the management team (part of the
- Staff development.
See presentation of the project.
Construction and optimization of business
processes of the company and establishment of the Quality Management System
(QMS of the Company) are planned in the investment phase of the Project. The
plant will be certified in accordance with international standards of quality
management system ISO 9000 at the end of the first year of production.
research has shown that at full capacity the plant leaves for three years.
Key management includes:
• Vasilyev Alexander – managing director.
- worked in a large Russian open-end
company "NCCP" where he organized and carried out tests, implemented
new machines and automation systems and created foreign economic activity
- 17 years experience in
entrepreneurship and private small and middle-sized businesses management;
- experience in creation and
management of companies;
- Experience in making business with
a number of large international companies, organizing distribution networks for
western companies in Siberia.
• Ivankin Vladimir – candidate
for the position of financial director.
- Advisory company director (13
years, management consulting);
- Worked in a multinational auditing
company (Deloitte & Touche);
- entrepreneurship and private small
high-tech businesses management;
- director of foreign economic
activity department in a bank;
- Management of the laboratory and
large projects in state defense enterprises.
• Godik Leonid – doctor of
science, recipient of the Prize of the Russian Federation Government –
candidate for the position of technical director/senior principal engineer.
- 9 years as a head of a technical
division and 1.5 years as a director of engineering services in Novokuznetskiy
- creation of antirecession
- creation, implementation and
certification of the company quality management system;
- Management of the enterprise (as
an executive director) producing modern heaters and a number of construction
Performance Evaluation of the company is based on
the Balanced Scorecard (BSC), that allows to implement strategic plans of the
company, supervising them on the basis of key performance indicators (KPI).
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The financial model of the Project is the model
that includes local projects: the marketing project for the construction of
demonstration houses, creation of public-private partnerships, creation of the
holding company and improvement of the company management system.
The investment parameters of the Project are
calculated for 20% discount rate.