International Investment Cooperation
The RHD Foundation acts purposefully in relation to attraction of foreign investment and technologies to the housing construction market in Russia.
The Foundation is actively participating in international construction exhibitions. At the same time, in the framework of Russian economic forums, presentation of the Foundation’s land plots planned to be auctioned for foreign partners is being performed.
In 2011, the Foundation signed an agreement for cooperation with Canada Mortgage and Housing Corporation. An understanding is reached with Itaco, Italian corporation for construction of a house building factory in Saratov Region; the volume of investment will amount to 100 mil. euro, capacity - to 400 thousand sq. m. of housing per year. Communication with a number of large institutional investors for implementation of their projects at the Foundation’s plots is being performed.
There are three basic directions for investment:
Firstly, in accordance with laws of the Russian Federation, foreign legal entities may participate in the RHD Foundation’s auctions in the regular procedure, and, in case of victory, develop plots for the purposes of housing and other construction in accordance with tender documentation.
Secondly, construction of new construction materials production facilities and house building factories, including based on foreign developments, technologies and patents.
Thirdly, the Foundation is performing purposeful search of land plots for concrete requirements of an investor that is willing to implement a large project in this or that region of Russia. In this case, the right to lease a land plot, or the plot itself, may only be acquired by an investor via an open auction.
Advantages of Investment to Russia
- The housing construction market in Russia is growing rapidly. Doubling of construction volumes is expected in the next five years.
- The level of effective demand for housing and level of return are the highest in Russia in comparison to the BRIC countries.
- The Russian population’s need in housing conditions improvement is one of the highest in Europe.
- There are accurate, transparent and predictable rules of federal ownership lands’ involvement into housing and other construction in Russia, which allows implementing of massive development projects.
Advantages of Investor and Developer Cooperation with the RHD Foundation
- Removal of administrative barriers and corruption risks;
- The RHD Foundation is a guarantor of legal validity of any operations related to land, and “transaction cleanliness”;
- Selection and purposeful search of land plots in any of 83 subjects of the Russian Federation;
- The Foundation is cooperating with regional and municipal authorities and natural monopolies for successful implementation of a project;
- The single plan of works and investment basing on understandable rules, and transparency of processes;
- Government guarantee of performance of obligations;
- Assistance in provision of plots with necessary infrastructure;
- Assistance in obtainment of financial support on the part of financial institutions and banks;
- The guarantee of repurchase of up to 35% of economy-class housing from developers.