Within the framework of regional expansion, X5 Retail Group, Russia’s largest retailer by sales volume, has leased 16,000 sqm of warehouse premises in Volzhsky Industrial Park in Nizhny Novgorod.
The leased area will help optimize warehouse logistics of the retailer thanks to the high quality characteristics and winning location of the warehouse. The lease agreement has been concluded for 5 years. Colliers International acted as the consultants of the deal.
Volzhsky Industrial Park, with a gross building area of 180,000 sqm, is one of the largest and only fully fledged Class A industrial park project, realized in Nizhny Novgorod region at the moment.
The project is realized by a team of professionals with extensive experience in construction and real estate investments. The funding is made by the project’s investor, the American investment fund Amstar Global Partners, together with the European Bank for Reconstruction and Development (EBRD), the developer is Griffin Partners company. The project has a status of ‘high priority’ in Nizhny Novgorod region and has the personal support of the governor Valery Pavlinovich Shantsev.
Oleg Gusakov, partner at Griffin Partners, commented: “The appearance of such major tenant, as X5 Retail Group in our complex, automatically increases investment appeal of the project and confirms the chosen strategy of the development. Nowadays tenants of our complex are leading Russian and international companies, who supplement the business community in the region, and also make good contributions to the development of Nizhny Novgorod, one of the largest centres of industry and manufacturing in the central part of Russia.”
Vladislav Ryabov, Director, Industrial Property Department at Colliers International, added: “This is a landmark deal for the Nizhny Novgorod market; it is the largest one with high-quality warehouse space. Such deals emphasize the continued active development of federal retailers in the regions of Russia.”