LAGOLOVO

a highly profitable investment project

developing real estate in Leningrad Oblast

OOO Lenalp — agent consultant for project development

Procedure for Investing in the Project

1. An investor acquires ownership in a land plot with a total area of 124.4 hectares or a part of it.
2. The investor executes the residential real-estate development project and sells it OR sells the plot when the price he has offered is reached.

Assessment of Investment Return

Parameter	Development Project	Resale Project
Site acquisition price	2 120 000 000 rub.	2 120 000 000 rub.
Capital investment	App. 47 400 400 000 rub.	715 000 rub. per year (land tax)
Completion time	5 years	3 years
Type of future use	residential property	—
Total living space	App. 960 000 sq. m.	—
Projected selling price	App. 113 300 000 000 rub.	App. 4 000 000 000 rub.
Project’s profit yield	App. 63 80 000 000 rub.	1 877 855 000 rub.
Investment return	129% of aggregate investments	88% of aggregate investments

 

 

Factors for Assessing the Projects’ Performance

Development Project

Resale Project

●       Projected high demand in the St. Petersburg metropolitan area due to population inflow to the region (top region in Russia for this indicator) ●       Projected high demand for new construction at the site due to its transport accessibility and the area’s development ●       Projected growth in housing prices of 10% per year ●       Urban-planning rules and regulations allow multi-story residential development on the site.

●       The site is divided into lots ready for direct sale (5 ha and up). ●       Attractive price: The site’s per-hectare sale price is a third of the average offer price on the market for comparable lot sizes. ●       Location of the site in an area showing stable price growth on the new-construction market in Leningrad Oblast (about 10% per year for the past 5 years) ●       With the complex urban-planning situation in the St. Petersburg real-estate market, land plots in Leningrad Oblast around the city limits is becoming especially attractive thanks to the oblast’s clear plan for executing projects.

View of the site

 

Location and Description of the Site

The site is located at: Lagolovo Village, Lomonosov Municipal District, Leningrad Oblast.

• The site’s total area is 124.4 ha, and it is divided into 51 smaller plots.
• It’s part of a populated area and is free of buildings and structures.
• A land-use plan has been completed for the site and its demarcation. Integrated development for residential buildings is the permitted use for each plot.
• At present the land is not in use, it is not being farmed, and there are no unauthorized waste dumps.
• Specification requirements have been received for connecting the whole site to utilities.
• It’s a 15-minute drive from the Ring Road, and 30 minutes from Pulkovo airport.

 

Satellite view

The Surroundings

The site’s eastern side borders the Gatchina Freeway, and on its north it borders the city of St. Petersburg and connects to Krasnogorod Street. To its west is territory of the rural settlement of Lagolovo that is connected with a manufacturing zone and a utility-infrastructure zone. To the south is territory of the manufacturing zone of the Villozskoye rural settlement. Also bordering the plot are automotive-service facilities (Piter Lada), gas stations (Lukoil, PTK, Gazpromneft), and an open parking lot. The lands adjoining to the south and the west have no buildings or structures, and are not being farmed.

In the immediate vicinity of the site are the supermarkets Lenta (a 2-minute drive), Pyatyorochka, child-care facilities and playgrounds, and a school. Ten minutes away by car is the Tuutari Park recreation center, with ski slopes and artificial snow, an ice rink, and cross-country skiing tracks.

 

 

Nearby Attractions

The Lagolovo site is located in the immediate vicinity of St. Petersburg, a world-class historical and cultural destination, with its unique palaces and parks.

All the old imperial residences are situated in the picturesque northwestern suburbs of the Russian Empire’s former capital:

• Lomonosov – a 35-minute drive away
• Peterhof — 35 minutes away
• The Pushkin Tsarskoye Selo ― a 25-minute drive
• Gatchina ― 20 minutes

 

Factors That Make This an Attractive Investment

The continual inflow of population to the region

The metropolitan area that has formed here, of St. Petersburg and Leningrad Oblast, has a total population of 7,250,000 and has become a leading destination in Russia for growth through migration.

The metropolitan area’s total annual population growth is about 230,000.

Preparations in place for executing the project in accordance with urban-planning regulations

In accordance with the Master Plan of the Lagolovo rural settlement of the Lomonosov District of Leningrad Oblast, each of the 51 plots constituting the site is classified as land for settlements.

The permitted use for each plot is integrated development of residential buildings. Site development plans were completed and approved in 2015 for each of the 51 plots.

A site design and a boundary-setting plan have been completed for the entire site.

The site is divided into the following use zones:

• a residential zone of multistory buildings, each with 9-12 stories, with an area of 73.05 ha (58.78% of the site’s total area)
• a zone for schools and preschools, with an area of 17.02 ha (13.68% of the total area)
• a public zone for business buildings, 1.42 ha (1.14% of the total area)
• planted green zones for general use, 3.39 ha (2.73% of total area)
• a zone dedicated to infrastructure, 2.51 ha (2.02% of the total)
• a P3 zone for transport and logistics, 12.73 hectares (10.23% of the total area), including zones for multi-story garages totalling 4.89 hectares, and zones for the main streets within the neighborhood and building entrances, 7.84 ha

Utilities available for the site

• The construction site is approved for connection to St. Petersburg’s water-supply network, for 9,873,000 cubic meters per day, and a waste-water capacity of 8,309,700 cubic meters per day.
• Wastewater disposal by the Neva-Ladoga water-management board.
• Specifications for connecting to the power grid of PAO Lenenergo: in two levels, 1500 kW and 3450 kW, at the second grade of reliability, to Substation No. 154, which is located 2 km from the site. Substation No. 154 was modernized in 2016, and has a power reserve of 35.5 MVA and a total capacity of 126 MVA.

High potential for large-scale construction

• Plots within the multistory residential zone are shaped in such a way as to permit construction of buildings on them with maximum usable space. The utilization ratio of the site will range from 0.99 to 1.57.
• A preliminary calculation shows that the site can accommodate buildings with a total of 959,928 square meters of apartments.
• A proposal has been presented for constructing a neighborhood boiler plant on lot 2-9 with an area of 3782 sq. m. for the territory’s land-use plan and demarcation.

Convenient accessibility for transport

The site directly adjoins the existing Krasnoye Selo multistory development. The city’s nearest public transit stops are located on Krasnogorod Street, at a five-minute walking distance.

Transport infrastructure for St. Petersburg’s Krasnoye Selo District is currently undergoing construction and renovation, which will significantly improve the site’s accessibility:

• The traffic bypass for Krasnoye Selo is expected to open at the end of 2020.
• Renovation of the Gorelovo overpass should be completed on 30 July 2020, and renovation of the Ligovo overpass on 30 October 2021.
• Construction of the South Lateral Highway, which will connect the Volkhonskoye Freeway with the Moscow and Petrozavodsk Freeways to Metallostroy, should start in 2020. When this highway is put into use it will significantly reduce travel time from Krasnoye Selo to the southern districts of St. Petersburg, Pushkin, and Kolpino.