CONTENT
ROSTOV REGION 4 THE TERRITORY OF GREAT OPPORTUNITIES
“PRIAZOVSKAYA” 28 TOURIST-RECREATION ZONE
SOUTHERN SHORE OF THE AZOV SEA 36
”AZOVSKY LAS-VEGAS” 40
STANITSA STAROCHERKASSKAYA 42
«ROSTOV-CITY» 46
SOUTH-BATAYSK INDUSTRIAL ZONE 54
CONTACTS 62 RUSSIAN FEDERATION ROSTOV REGION THE TERRITORY OF GREAT OPPORTUNITIES ROSTOV REGION
Rostov region is one of the largest regions of the Russian Fed-
THE TERRITORY OF GREAT OPPORTUNITIES eration. It absorbed all investment advantages of Russia, more-
over climate is mild and warm here than in other regions of the country.
4 5 ROSTOV REGION THE TERRITORY OF GREAT OPPORTUNITIES
Glorified by Don Cossacks, famous all over the world as the Motherland of Anton Chekhov, Nobel prize winners Mikhail Sholohov and Alexander Solzhenizin, as the place of the latest archaeological digs of Tur Heyerdal, Ros- tov region is among the leading industrial regions of the coun- try. It is considered as the genuine business capital of the South of Russia.
6 7 ROSTOV REGION THE TERRITORY OF GREAT OPPORTUNITIES
M.A. Sholokhov (1905-1984) was born in the stanitsa Veshenskaya. Twice bearer of the title of the Hero of Socialist Labour, laureate of the 1st Degree Stalin Premium awarded him for his novel “Quiet Flows the Don”(1941), and laureate of the Lenin premium for the novel “Podnyataya Tselina” (Virgin Soil Upturned) (1960). Laureate of the Nobel Prize for the novel Quiet Flows the Don”(1965).
8 9 But the main thing nowadays is that Rostov region is the terri- otory of great opportunities, including developers, realtors, and investors in commercial real estate.
Economy of the region, income of the population, general liv- ing standards and consumer market during the last eight years ROSTOV REGION have been growing so dynamically that business, trade and in- dustrial infrastructure couldn’t keep up with these indices. THE TERRITORY OF GREAT OPPORTUNITIES
10 11 There can be no doubt about the fact that within five-ten years in Rostov-on-Don and other adjoining cities (Taganrog, Novo- cherkassk, Azov, Bataysk, Aksay – the so-called Rostov ag- glomeration, with the population of more than 2 million people), there will be: . own city;
ROSTOV REGION . business centres, of the level of European compa- nies, which start today their activities on the territory of the Rostov region; . new hotels and health centres on the unique cost of Azov sea; . casinos and entertaining establishments in the de-
THE TERRITORY OF GREAT OPPORTUNITIES signed gambling zone (“Azovsky Las-Vegas”);
. a great number of trade centres; . leisure and sport establishments.
However the aim of the region authorities, mayors of the larg- est Don cities is to cross this road as soon as possible. And it would be better to do this with European and world leaders of the real estate market.
12 13 Within the framework of Rostov agglomeration on MIPIM-2007 we present three projects, where it is possible and profitable to display oneself as a de- veloper or investor. These are:
ROSTOV REGION . “PRIAZOVSKAYA” TOURIST-RECREATION ZONE
. “ROSTOV-CITY” THE TERRITORY OF GREAT OPPORTUNITIES . SOUTH-BATAYSK INDUSTRIAL ZONE As a result each of the aforementioned projects will absorb tens and thousands of smaller projects. And it doesn’t matter whether it is SPA hotel on the cost of Azov sea, office towers, show coplex in the Rostov-City or industrial park in the area of Bataysk. The authorities of the region, regional “Investment Promotion Agency” are ready to contribute in any possible way to make it appear on the map of Rostov region and development of your business.
14 15 ROSTOV REGION THE TERRITORY OF GREAT OPPORTUNITIES
Town Council (Architect Pomerantsev A.N.)1899. (the present day- City Administration)
16 17 ROSTOV REGION THE TERRITORY OF GREAT OPPORTUNITIES
Drama Theatre named after Gorky M. Built in1935. Constructed in the form of a huge tractor. Its model as a sample of architectural constructiv- ism is exhibited in the British Museum nowadays.
Drama theater entering the number UNESCO architectural monuments.
18 19 ROSTOV REGION THE TERRITORY OF GREAT OPPORTUNITIES
Alexander-Nevsky Cathedral 1907 (not preserved) and Rostov State bank office (now Russian Federation State bank administration in Rostov region) on New Market square (now Soviet square). Rostov-on-Don.
20 21 ROSTOV REGION THE TERRITORY OF GREAT OPPORTUNITIES
The Fashion Trade Centre “A’stor Plaza”. Rostov-on-Don. Architect The A’stor Plaza project is renowned the best Russian developer project of – Dominic Guillot of Design Architectural, the leading French architectural 2005 – 2006 in the “Trade Complex” nomination. Constructed in 2006 by company. The Design Architectural Company is the author of the design the “ADM Group” developer company (Rostov-on-Don). project for the Lafayette Gallery, trade complex in the centre of Paris. 22 23 ROSTOV REGION THE TERRITORY OF GREAT OPPORTUNITIES
The “Galion” versatile centre is arranged in form of a sailing vessel. Its The project is to be realized in the central part of Rostov-on-Don by the internal design corresponds to the same concept. middle of 2009. The area occupied is about 100 000 sq. m. The investors of this the project are: Gorizont SC and Promsviaz’nedvizhimost (Industrial communications and real estate) CJSC. 24 25 ROSTOV AGGLOMERATION SCHEME
26 27 “PRIAZOVSKAYA” TOURIST-RECREATION ZONE “PRIAZOVSKAYA” TOURIST-RECREATION ZONE
The current resort, ethnographical, historical and cultural, rec- reational potential of “Priazovskaya” is used to the extent of less than 5%. In many respects due to the lack of modern hotels, SPA centres, recreational infrastructure, high-quality service.
However, even presently the situation cardinally changes. So, for example, as a perspective for the nearest five years flow of tourists who prefer to go on vacation to Rostov region on the coast of Azov sea will grow from the present 200 thousand people a year up to 3 million people.
28 29 There are several reasons for this: . Great-scale government investments in the devel- opment of engeneering, transport and social infrastructure and bank stabilization. . Building of one of the four gambling zones “Azovsky Las-Vegas” on the coast. There are legislative incentives for the concentration of the whole Russian gambling busi- ness in this four zones, including the zone of “Azovsky Las-Vegas”. Just the government itself is willing to invest about $458,000,000.
Systematic and logical work in improvement of the
“PRIAZOVSKAYA” . ecological situation in Azov-Don area of water (great-scale investments in modernization of the regional water treat- TOURIST-RECREATION ZONE ment plant; necessary accent on ecology of the newly built factories and plants; systematic activity in renewal of bio- resources, existent reserves, places of wild nature; strict observance of environmental legislation). . Completion of one of the largest golf-club in Russia in stanitsa Starocherkasskaya (140 ha). . Realization of the project of the new Rostov airport “Rostov hub”, capable of receiving all types of the main air crafts, and is designed for annual passenger traffic of 8 million people. All this makes real presuppositions for dynamic development of “Priazovskaya” and for carrying out new great-scale develop- ers’ projects on its territory.
30 31 Besides the growing appeal of the Azov sea coast, building of the “Russian Las-Vegas” will form a great-scale traffic for the development of the tourist industry among the nearest histori- cal and cultural sights of Don, first of all in the following cities: Tanais, Azov, Taganrog, Rostov-on-Don, Novocherkassk, Aksay and stanitsa Starocherkasskaya. “PRIAZOVSKAYA” TOURIST-RECREATION ZONE
32 33 “PRIAZOVSKAYA” TOURIST-RECREATION ZONE
“Old House” hotel, located between Rostov and Azov (20 minutes drive from the center of the Don capital).
34 35 Territory for the realization of the new resort and health cen- SOUTHERN SHORE tres’ project (hotels, SPA, children sanitary centres) – not less OF THE AZOV SEA than 300 ha. Major advantages: . 40 km – length of the shoreline (sand beaches). . The most moderate sea coast of Russia. . Ideal for development of children and trade union rec- reation.
“PRIAZOVSKAYA” . No direct foreign competitors (except for Ukrainian part of Azov sea). TOURIST-RECREATION ZONE . Warm climate (quantity of heat in the summer time is the same as on the famous Black sea resorts; swimming pe- riod continues for 90 days in average, sometimes for 110 days).
36 37 “PRIAZOVSKAYA” TOURIST-RECREATION ZONE
Tourist trends: Advantages before Black sea coast: . 3 million people a year – expected number of tour- . Best transport availability from the central and north- ists; ern areas of Russia. . family recreation on the beach; . Lower cost price of resort services (for example, due to the more favourable landscape the coast of maintaining . medical, balneal; engineering infrastructure and building). . cognitive, historical and cultural; . Today health programs on the Azov sea coast are moderate for 90 % of the Russian families. . ecological (natural steppe landscapes, wild nature, nat- ural park “Don Delta” are preserved); . Sand bottom and shallow water favour the develop- ment of vacation for children. . archaeological (on the territory of the Rosotov region great-scale archaeological digs are carried out; areas near . Absence of competition from the side of foreign Azov and Tanais at different time attracted attention of fa- competitors. mous archaeologists as Tur Heyerdal); . Climate suitable for the most adults and children. . pilgrim; . Sanatorium treatment can be advised for wide range . sport (ideal place for surfing and sailing). of people. . Great opportunities for the development of SPA cen- tres (mud, mineral springs and other). . Neighbouring with a large number of different sights (Peter’s and Chekhov’s places, Cossacks’ places, Tur Heyerdal, Starocherkassk, Taganrog, Rostov-on-Don, No- vocherkassk and other). 38 39 ”AZOVSKY LAS-VEGAS”
For the relatively short term the population of the “Azovsky Las- Vegas”, on the place of which there is no a single building, will
“PRIAZOVSKAYA” reach 40-50 thousand people.
TOURIST-RECREATION ZONE Today the starting developers have maximal opportunities for the realization of their projects in the framework of “Azovsky Las-Vegas”.
Present stage presumes that the aspiration of private capital According to the federal law, initiator of which was the Presi- on the given territory will be supported by the most government dent of Russia Vladimir Putin, Russian gambling business since preferences. the 1st of July, 2009 shall be moved to the four newly built gambling zones. “Clubs and casinos of Saint-Petersburg, Moscow, Moscow re- gion, large cities of the European part of Russia will be trans- Each of these zones will be located outside of the existent in- ferred to the gambling zone of Priazovie, and along with them habited localities. investments and absolutely new business. This fact in its turn will lead to the growth of prosperity of the inhabitants living on One of the four “Russian Las-Vegases” will be built on the coast these territories and to the increase of business activity in the of the Azov sea, on the border of Rostov (Azov area) and Kras- region” – says the Governor of the Rostov region Vladimir nodar regions. Chub.
Total area: 2000 ha; of which in Rostov region – 1000 ha.
Construction of engineering infrastructure bank stabilization, roads and other are meant be carried out at the expense of gov- ernment investments (Total sum of government investments - $458,000,000).
Airport for small airplanes of business class, new berths for yachts and beaches are being designed.
Application sphere of private capital: casinos, entertaining es- tablishments, hotels, restaurants, toll motor road and other.
Beginning of the project – 2007 year.
40 41 STANITSA Unique advantages: STAROCHERKASSKAYA . location in proximity of Rostov-on-Don and main transport thoroughfares; . ready engineering infrastructure; . interest from the foreign tourist operators due to in- clusion of information concerning the Starocherkassk his- torical and cultural preservation area into UNESCO refer- ence books; Location: stanitsa Starocherkasskaya (30 km. away from Rostov-on-Don); . the Cossack colouring; “PRIAZOVSKAYA” 30 000 ha. of area meant for prospective development; fulfillment of a project for construction of the sport
TOURIST-RECREATION ZONE . and recreation complex “Golf and Country Club “Don”. 20 minutes drive from Rostov-on-Don international airport; Area: 140 ha. On the 1st of September, 2007 the nine holes of champion class will be opened, and by 1st August, 2008 15 km. away from the federal road M4. – a champion golf field with 18 holes.
42 43 “GOLF & COUNTRY CLUB “DON”
The project is being realized on the area of 140 hectares.
The project includes: . Building of a golf field of international standard for 18 game holes and a golf academy which includes Driving Range, Patting green, Pitching green, and three game holes.
Building of a yacht club on the bank of the Don
“PRIAZOVSKAYA” . river. TOURIST-RECREATION ZONE . Construction of a hotel ***** ‘Golf & Conference” for 125- 150 standard suites and luxury suites. . Building of the sports and health-improving complex center.
The project of Golf and country club “Don” has been elabo- 18 fairway holes, inscribed into a natural landscape, which are rated by the German architect Folker Pushel, member of the planned to be built will satisfy the demands of players of all the European Institute of Golf Architects. The contractor is German categories. They will also provide the possibility to hold the in- Company Mokinski & K, which has built over 130 golf-fields in ternational contests. the Old World countries.
44 45 «ROSTOV-CITY»
ROSTOV-CITY Megacity, situated on the right bank of the river, is the town- planning feature of Rostov-on-Don.
That is why Rostov, in distinction from other Russian and for- eign cities, has got the rare opportunity to realize the developer projects on the spear territories (left bank) close to the historical center.
«Rostov-City» is precisely this project.
Total area to develop – more then 150 ha. Location:
Left bank of the river Don, opposite the central part of Rostov- on-Don. In the kilometer of the main administrative buildings of the capital of Rostov region and South Federal Area (Ros- tov-on-Don obtained status of the county capital in the year 2000).
2 Total area planned for the projects – 1,5mln m .
Purpose of the buildings (approximate area): business (250 000 m2), trade and exhibitory (250 000 m2), hotel (200 000 m2), entertaining (350 000 m2), sporting (450 000 m2).
Total volume of investments – more then $2 billion.
46 47
Advantages of the territory: . is situated on the territory of the general plan on the municipal center development; . look out on the river Don and bay “ Kovsh”, that could be used as “Marine”;
excellent transport access both from the South and ROSTOV-CITY . from the city center on the right bank in view of the build- ing of the bridge over the river Don (Siversa str. and Soko- lova str.); . the most expressive view onto the right-bank his- toric part of the city; . the territory is situated on both sides of the Bataysk high road where the entrance into the central part of the city is realized from the south direction (Krasnodar, Sochi, Stavropol, Novorossiysk).
48 49 The transfer of business, administrative activities from the his- torical centre to the opposite bank solves the problem of city providing with high-grade office areas, “discharges” the histori- cal city centre. It imparts a powerful impetus for the provision of the left bank with engineering communications for the realiza- tion of recreational (east district) and port-industrial (west dis- trict) projects here.
Nowadays there is a serious shortage of office areas in Ros- tov-on-Don. And first of all in the city centre, which is rather poor on the free territories for building construction, but the compul- sory evacuation leads to the radical appreciation of projects.
ROSTOV-CITY As a result, in the capital of Rostov region and of all the South of Russia, Rostov-on-Don, the companies pay a high rent for one square meter of “C” class office areas from 20$ to $ 55 per month. There are no “A” class office areas in the city yet, and for the first projected buildings of such a class the rental contracts are made at $100 per month.
Rapidly developing local economy which causes a big dissat- isfied demand boosts the prices. Such world business lead- ers as the aluminum giant Alcoa, Bunge, Cargill, Metro Group, Louis Dreyfus, Glencore, Kingfisher, So- ciete Generale, etc. work in Rostov region now. 50 51 ROSTOV-CITY
Nativity of the Virgin Cathedral was constructed in 1860 in Rostov-on-Don by the architect K.A. Ton (the author of Christ the Sav- ior Cathedral and Armoury Chamber in Moscow and Embankment in St.Petersburg). Reconstructed in 90s of XX century.
Konstantin Ton is the author of new Russian Byzantine style.
52 53 SOUTH-BATAYSK INDUSTRIAL ZONE
N owadays in Russia there is a large number of industrial proj- ects, connected not with the modernization of the existent in- dustrial capabilities but with the construction of new plants and factories. Besides this fact can be explained by higher deterio- ration of the existent industrial establishments, most of which were built 40-50 and more years ago, and also by the lack of
SOUTH-BATAYSK ergonomics, impracticality to the current technological develop- INDUSTRIAL ZONE Namely high price of engineering communications provision, ment. Moreover there is no such cheap offer of old industrial long term of fulfilment of works on rendering necessary capaci- buildings and workshops in Russia by now as it used to be 10- ties of gas, energy, water supply and water drainage. 15 years ago. That’s why developer’s business starts to develop very dynami- At the same time the intention to build new plants and factories cally in Russia nowadays. It is connected with the establishment almost always faces the so-called infrastructural limitations. of industrial parks and zones where plants and factories will be built without any infrastructural problems in the near future.
54 55 In their approaches such developers’ projects have no differ- ence with the analogous projects in the sphere of office, trade estate. But, liquidity is surely less. But there is no such high competition, the forming considerably unsatisfied demand and readiness of the state to support alike projects at the maximum level, including the form of private-state partnership.
One of these projects which the Rostov region is willing to real- ize in cooperation with powerful private developers and private
SOUTH-BATAYSK investors is “South-Bataysk industrial zone”. INDUSTRIAL ZONE
At the present moment the territory of developing – 567 ha.
It is free from buildings area on the territory of the Rostov ag- glomeration (directly near Rostov-on-Don and Bataysk).
Industrial zone borders from the South and West on highway of federal significance “Don” (M4). All the areas of industrial zone have 3 exits to highways of federal and regional significance. There is a possibility of “filling” plots with establishments with the area from 1 to 100 hectares.
56 57 The developer of the of the territory complex maintenance with the engineering services is re- quired. Due to the complexity the infrastructure Advantages: costs decrease essentially. The approximate cost of the project first stage is 76 million USD. . Availability of sufficient labour resources of any qualification (within 15 minutes from Rostov-on-Don such cities as Bataysk and Aksay are located with the popula- tion of more than 1,3 million people).
SOUTH-BATAYSK Borders on the designed “Southern hub”, which will
INDUSTRIAL ZONE . be the largest airport of the South of Russia. . Near (at the distance of less than 10 km) there are ports, able to accept to take vessels “river-see”, high-ca- pacity railway junction, federal highway, binding Moscow und the South of Russia.
. The opportunity to create the efficacious logistics because of the proximity to the main transport high- ways. . Reasonable prices of the ground areas. . Relatively low costs of the territory complex mainte- nance with the engineering services. . Flat country.
Double capitalization increase due to the infrastructure provid- ing is supposed. Private and government partnership is pos- sible.
58 59 SOUTH-BATAYSK INDUSTRIAL ZONE
Rostov-on-Don main railway station
60 61 62 CONTACTS: Executive DirectorofInvestmentPromotionAgencyRostov General DirectorofInvestmentPromotionAgencyRostov International andExternalEconomicRelationsofRostov Deputy Governor,MinisterforEconomy,Commerce, Investment PromotionAgency 54, VoroshilovskyAve.,3-rdfloor Tel. /Fax+7(863)291-30-64 E-mail: [email protected] E-mail: [email protected] OF ROSTOVREGION ECONOMIC RELATIONS INTERNATIONAL ANDEXTERNAL ECONOMY, COMMERCE, REGION MINISTRYFOR ADMINISTRATION OFROSTOV Fax +7(863)291-30-65 Tel. +7(863)291-31-20 Tel. +7(863)291-30-64 Tel: +7(863)240-52-57 Web: www.donland.ru of RostovRegion E-mail: [email protected] Web: www.ipa-don.ru Rostov -onDon Victor Deryabkin Vadim Vikoulov 344010, Russia Igor Burakov Region Region Region
$2.8mlrd. then more with stages different in projects investment out ries Nowadays Investment Promotion Agency of Rostov region car gion. . the territoryofRostovregion; . of Rostovregion; potential segments market deferent and climate vestment . projects; . essary bureaucraticprocedures; . constructions withservicelines; . thorities; . on theterritoryofRostovregion; . tion inthenewregion. consider such an institute a very useful gear of project localiza investors foreign Many openness. investment region of ment ele one yet is region Rostov of Agency Promotion Investment economy. regional the of development dynamical maximum in terested in budget local the by covered are charges as free, are gion re Rostov in investors potential the for Agency the of Services motion Agency”(IPA). Pro “Investment established have region the of authorities the companies, Russian large the for also and foreign, for easier To make the way to Rostov region much more comfortable and The mainobjectivesofInvestmentPromotion
ToorganizenegotiationsandvisitstoRostov re To promote reception of the analytical studies on in your of implementation for partners local find To To promote the fastest penetration through the nec To pick up sites for implementation of your projects To accompanyifnecessaryinvestmentprojects on To favor contacts establishment with the local au local the with establishment contacts favor To o ete usin o mitnne f h future the of maintenance of questions settle To
OF ROSTOVREGION I NVESTMENT PROMOTIONAGENCY Agency ofRostovregion: ------
63 CONTACTS