Ukraine’s strategic geographical location,
a lack of investment-grade warehousing space combined with high and ever rising rental rates highlight a unique business opportunity of establishing a premier network of national logistics centers that would allow bridging the gap between transport and logistics services in Ukraine as they are and market demand for superior quality products.
Our investment idea is to build a network of four category A+ integrated logistics centers (warehouses) around Ukraine intended for top-tier tenants. The distinctive feature of the planned network is a high level of process automation and implementation of specialized software which allow for a maximum optimization of the warehouse business processes.
We are to follow the investment strategy of building class A integrated logistics centers on the carefully selected land plots around Ukraine, their exploitation during “landlord market” expected in the short to middle run and subsequent sale before market saturation and rental rates decline. This unique offering will appeal to the most desirable and reliable clients such as professional logistics companies and big manufacturers (domestic and international alike) and importers, especially in FMCG segment.
Financial model projects that IRR for the properties is in 16.3% to 40.8% range for 100% equity financing. Payback period varies from 6.2 to 8.7 years for a purely equity financing. Funds required for making an investment are $72 millions for 100% equity financing.