IIG solves Western companies’ industrial and logistics real estate risks in emerging markets
Aalst (Belgium), 23 July 2008 – Many Western companies are poised to enter emerging markets in Central and Eastern Europe, Russia and other members of the Commonwealth of Independent States, but are wary of the potential risks linked with real estate developments in these markets. Immo Industry Group (IIG), the pan-European developer of tailor-made industrial and logistics real estate, is ideally placed to address these concerns through its own expertise and through its close relationship with local partners in these markets.
Western companies are often concerned about the build quality of facilities in emerging markets. IIG solves this problem by consistently applying international building standards, irrespective of where a project may be located. IIG’s headquarters based and highly experienced engineers, who form part of every project team, monitor the implementation of its building standards.
A second issue troubling many Western companies in emerging markets is insecurity about land plot related issues. For instance, the lack of consistency with Russia’s privatisation waves makes it very difficult for an outsider to judge whether he is presented with a land title that would hold in court. IIG solves this potential risk by working closely with strong and reliable local real estate partners whose knowledge of local legislation and business practices clears this issue. IIG’s local partners will also assist in resolving any technical issues, such as a technical land plot due diligence, and in obtaining all required permits.
Western companies are typically very pre-occupied with time. In some emerging markets, legislation may impose a time constraint on Western companies for implementing local production procurement targets. IIG solves this issue with its industrial parks strategy. In cooperation with its local partners, IIG has developed a network of 18 strategically located industrial parks in Central and Eastern Europe, Russia and other CIS states that not only solve land title issues, but also reduce project implementation times.
A fourth concern to Western companies is how to manage the financial risks of real estate developments in emerging markets. IIG solves this problem by offering off-balance financial solutions. This means that IIG assists its clients to focus their resources on their core business.
IIG’s solutions will always include the tailor-made, high quality approach that attracted such clients as VW, BMW, Lenovo, L’Oréal, ArcelorMittal, Gefco, Visteon, GE Appliances and Magna, irrespective of the country where the project is to be implemented. IIG’s engineers will apply their vast experience to their clients’ needs and often improve their logistics and industrial processes, leading to significant reductions in terms of initial investment and operational costs. In addition, IIG has signed joint venture agreements with strong and credible corporate partners who have significant local expertise and skills. IIG’s corporate partner in Russia and other CIS states is Rostik Group, a Forbes rated leader in the restaurant, tourism and real estate business sectors and an IIG shareholder. In Slovakia, Ukraine and Turkey, IIG has joint venture agreements with J&T Real Estate, Aladdin Group and Toros Capital Partners respectively.
“By combining its vast international expertise with a strong local presence, IIG effectively manages all potential risks that are associated with real estate developments in emerging markets,” says IIG CEO Filip Schelfhout. “Our Western clients in CIS countries, such as Finnish based Nokian Tyres in Ukraine, appreciate the fact that we allow them to focus on their core business while reducing costs and improving efficiency. We are presently designing similar solutions for other Western companies who are keen to seize opportunities and leave the risks up to the specialists, adding to our track record of more than 100 projects that have been handed over or are under construction.”
About IIG:
Immo Industry Group (IIG) is a pan-European leader in smart, tailor-made industrial real estate, both as standalone projects and in industrial parks. By applying its vast expertise in logistics and industrial processes to client specific requirements, IIG develops cost-optimised on- and off-balance real estate solutions that reduce initial investment and operational costs. IIG fully controls all aspects of its projects through its strong team of highly experienced engineers and its associated branches: in-house industrial process and logistics consulting through Immo Industry Logistics and Process Solutions (IILPS), the construction phase through Immo Industry Contracting (IIC) and facility support throughout the building’s operational lifespan with Immo Industry Facility and Property Management (IIFPM). IIG presents unrivalled parks coverage with 18 industrial parks in Central and Eastern Europe and Russia in various development phases. By combining its vast, in-house international experience with the know-how of its 23 local offices in 18 countries, IIG succeeds in implementing the highest international standards in the shortest possible time. In Russia, Ukraine and Slovakia, IIG operates joint ventures with the Rostik Group (ImmoRosIndustry), with the Aladdin Group and with the J&T Real Estate Group respectively. IIG’s track record of more than 100 standalone facilities and industrial parks projects for leading logistics and industrial clients is living evidence of IIG’s great expertise.
More information:
Stijn De Preter, Press Manager, IIG
stijn.depreter@iig.org
