By Sarah Townsend
Funds including Mubadala form strategic vehicle with Russian Direct Investment Fund to boost logistics sector
A consortium of GCC funds and the Russian Direct Investment Fund (RDIF) have made a circa-$100 million investment in logistics projects near Moscow, the parties announced on Thursday.
The investment in a 200,000 sq m pair of facilities marks the first deal by the new logistics investment platform established by the RDIF and GCC funds, understood to include Abu Dhabi sovereign wealth fund Mubadala.
The Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, Sheikh Mohammed bin Zayed Al Nahyan, is in Moscow on Thursday to meet President of Russia Vladimir Putin and discuss bilateral relations.
The two logistics projects comprise more than 200,000 sq m of existing facilities and land for future development. The deal includes an option to build up to 300,000 sq m of additional facilities.
They are located in the Dmitrov and Chekhov Districts of the Moscow region in close proximity to the major cargo routes A107, M11 (a new highway connecting Moscow and St. Petersburg) and M2 (a major highway connecting Moscow with the south of Russia).
The developer of both projects is Russian logistics giant PNK Group, which said it intends spend the funds from the investment to finance new development and construction projects across Russia.
Kirill Dmitriev, CEO of the RDIF, said: “We see the significant potential for investment and scale in logistics projects throughout the country.
“Companies operating in Russia require strategically located logistics complexes with efficient management and infrastructure in order to optimize their supply chains.
“This leads to a significant reduction in operating costs and boosts their competitiveness.”
The RDIF was set up by the Russian government with an initial $10 billion in 2011 to make equity investments in high growth sectors of the Russian economy, including logistics, healthcare, energy, agriculture and retail.
Since its inception, the RDIF has secured more than $25bn through long-term strategic partnerships with global investors, 90 percent of which has come from Asia and the Middle East.
Other deals with GCC investors include the formation of a joint venture with UAE-based ports operator DP World, called DP World Russia, to investment up to $2 billion in ports facilities across Russia.