Investment case. A Swedish investment fund, “Caspian Investments” with a 20-year long track record realizes an investment project of office building construction in Dubai. A new building project with 115,000 square feet of office space combines a traditional brick and glass facade with stylish aluminum fascia and cost saving stucco. . Under floor air, power and data distribution system; expanded temperature comfort zone and natural ventilation in the atrium; reclaimed energy to condition the atrium; day lighting; site orientation for optimum solar and wind use; heavyweight concrete mass structure and many more features were designated by variety of innovative decision-making, design and construction approaches. New building will provide many opportunities for leased office space. Twin elevators and stair towers provide vertical transportation from floor to floor while each floor contains a mechanical/electrical room. The building includes administrative offices, creative laboratory, product display space and training areas. The lobby includes skylights and an inspirational water feature for all who enter the building. The kitchen and break areas were designed around employee needs and include an area large enough for informal gatherings.

Finance. Under the pessimistic scenario, the poject’s value upon completion is estimated at $23 mln, with 18 mln on construction. The costs breakdown is 10% for land pre-development, further 15% for the preparation of necessary documentation including the master plan and approvals and the rest for the construction. . We take cautious approach to valuation of the project and believe it can generate as much as $11 mln in yearly rental income, which takes into consideration a vacancy rate of 10% We plan to sign preliminary lease contracts for 80% of the total space in course of development. Office spaces will be available for rent at the moment the project is launched and delivered to customers within 24 months from the start date.

Project progress. Currently, the project is at an early stage of implementation. The project would be completed in 24 months from the date of getting all necessary state approvals. The company is in the process of getting necessary approvals, attracting investors and negotiating with contractors. So far, the concept has been formed; the business plan and preliminary calculation have been performed. We expect the dwellings to be sold out before their delivery, making thus the payback period limited by 3 years.

Investment case. A Swedish private investment fund is eager to enter the buoyant warehousing segment in the central Russian regions. The investment fund is coming out with a draft project which implies pre-development of a 15 ha large land plot and development of: -47,000 sqm of prime warehousing facilities -6,000 sqm of class B office spaces Optional for the project is equipping the storehouses with refrigerating machines, electric trolleys and elevators. The warehouses are expcted to be rented out to up to 5 core tenants representing major retail chains with heavy presence in Moscow. We plan to sign preliminary lease contracts for 70% of the total space in course of development.

Finance. We take cautios approach to valuation of the project and believe it can generate as much as $7 mln in yearly rental income, which takes into consideration a vacancy rate of 7%. We thus estimate the project’s net present value at almost $65 mln. At the same time the calculated total cost is between $40 mln and $45 mln, depending on the built-in option. Project progress. At present the project is in design phase. We have carried out general market survey and competitors analysis, conducted preliminary effectiveness estimates and started preliminary talks with landowners and potential tenants. We are now at the stage of fundraising to finance acquisition of a land plot and preparation of documentation needed for the predevelopment to be started.