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Colliers International helps Oriflame move production capacity to Noginsk in the Moscow region: the company’s large warehouse and distribution complex in Krasnogorsk has been sold to Х5 Retail Group

Oriflame has sold its warehouse and distribution complex in Krasnogorsk following the strategy ofthe process product line and production volumes expansion in Russia and move of company’s cosmetics production facilities and logistics centre to Noginsk district of Moscow region. The property, which includes a territory of 11.6 ha, was acquired for more than 36 million euros by Russia’s leading food retailer X5 Retail Group and will be transformed into a Carousel hypermarket. The international consultant Colliers International was the exclusive consultant for property sale.
Oriflame’s warehouse and distribution complex is conveniently located directly on the Baltic Highway, 10 km from the MKAD. The property is easily accessed from both directions on the New Riga Highway (Baltic Highway), which is one of the most popular roadways in the Moscow region for active residential development. This means that the appearance of major retailers here is a very logical step.

Alexandra Selezneva, Director of Industrial, Logistics & Land Services, Colliers International Russia: “Oriflame’s warehouse and distribution complex sale in a record time speaks to the fact that food retailers are very interested in quality assets located in the suburbs near Moscow. Several major companies were bidding for the property, but X5 Retail Group made the best offer. Colliers International’s participation in such a major transaction underscores the high quality of the services we offer.”

The deal with X5 Retail Group was closed in record time. It only took three months to complete the transaction, which indicates the market’s demand for such properties. The sale of the warehouse and distribution complex in Krasnogorsk will allow Oriflame to transfer its cosmetics production to Noginsk district of Moscow region, where the company is implementing a 150-million-euro investment project to build a production and logistics complex, which will also produce shampoo, deodorant and other cosmetic products.

Together with the Class A warehouse complex totalling 21,000 sqm, X5 Retail Group also acquired the property’s supplemental infrastructure. Thanks to the large showcase windows facing the highway and the fact that the building was built according world-class construction standards, X5 Retail Group will be able to adapt the premises rather quickly in order they serve as a Carousel hypermarket.

Vasily Korobeinikov, Director of Development, Carousel: “The technical characteristics and current use profile of the building will allow X5 Retail Group to use the property for retail purposes and open the largest Carousel hypermarket in the Moscow region equipped with technologically advanced equipment, new interiors and lighting solutions which will satisfy the most sophisticated tastes of our customers. In addition to the hypermarket, a retail gallery will be organized in the building, making it possible to expand the assortment of goods as well as to offer supplemental services. The conversion of the warehouse space will not take long, and we expect that the hypermarket will open in the third quarter of 2015.”