Radius Group and Oriola have signed a 10 year leasing agreement on a 30, 000 m2 logistic center facility at the South Gate Industrial Park
Radius Group, a responsible warehouse real estate development company, and Oriola, one of the top 6 pharmaceutical wholesalers in Russia, 100% subsidiary of Oriola-KD Corporation, have signed a leasing agreement. According to the agreement Radius Group will build a warehouse and distribution center for Oriola of 30,000 M2 area in the modern South Gate Industrial Park. The investment amount in the premises by Radius Group is approximately USD 40 million.
The new class A distribution center will be used by Oriola as a main distribution facility instead of two currently used warehouse locations in Moscow region. The operations will be transferred and the full capacity will be achieved by the end of the first quarter in 2015. The center will serve as a logistics hub to provide pharmaceutical deliveries to Moscow-based customers and Oriola’s branches across Russia. The level of automation is targeted to be approximately 40 %. Oriola will invest approximately USD 15 million (~ EUR 12 million) in the project, including automation solution, warehouse machinery and equipment.
"Due to Oriola’s business growth on the Russian market the company requires first class logistics services. Our strategic objectives include increasing efficiency and profitability of operations, further regional and hospital sales growth. The new larger distribution center at the South Gate Industrial Park and access to the newest automation equipment will allow us to significantly increase the capacity, security and picking efficiency as well as improve the quality of delivery to our customers”, said Vice-President of Oriola-KD’s Pharmaceutical Wholesale business in Russia and managing director of Oriola in Russia Henry Fogels.
“As a pharmaceutical trade company Oriola is known to be guided by high quality standards and commitment to GDP (Good Distribution Practice) in its operations. We are delighted to be partnering with Oriola on this project and be capable of providing the company with the best modern solutions as a responsible warehouse real estate developer”, noted Christopher Van Riet, managing director of Radius Group.
The technical parameters of the “South Gate Industrial Park” fulfill all the necessary requirements of building codes and international corporate and construction standards.
Oriola is one of the leading (top 6) pharmaceutical wholesalers in Russia. The company has 12 regional distribution centres across Russia. The head office and main distribution center are located in Moscow area. The company has more than 1700 employees with the largest amount working in warehouse/logistics functions. Oriola is a member of Oriola-KD Group. Oriola-KD Corporation is a leading pharmaceutical retail and wholesale company in Finland, Sweden and Russia. Oriola-KD’s net sales for 2012 were EUR 2.5 billion and the number of personnel is some 5 500.
Headed by managing directors Christopher Van Riet and David Simons, Radius Group offers effective solutions for international Class A warehouses and industrial real estate in Russia. Radius Group uses its expertise in engineering, finance and marketing areas to minimize the risk in product development to fully fulfill their client’s needs.
Since the company’s establishment in 2006 Radius Group has successfully implemented a green field development of built-to-suit class A properties in Moscow, Kiev, and Kazan. Since 2009, the company has been developing the South Gate Industrial Park with total planned area of 650,000 m2.
South Gate Industrial Park
South Gate Industrial Park is a project of new scale in the warehouse market in Russia. Today the park has both existing quality warehouse space available for lease and building sites for the projects for customer's specific needs (build to suit).
The facility has valid and reliable infrastructure package necessary permits, to minimize cost and time risks associated with the implementation of projects in the park.
The park is located in the South of Moscow close to the Domodedovo international airport. The Industrial park is located on the intersection of highways M-4 (Don) and A-107. The Park’s location enables it to be easily accessibly both from Moscow and from other Russian regions. The total area of the industrial park is 144 hectares. At the moment, over 155 000 m2 of warehouse space have been commissioned with the full planned area of the warehouse facilities will be 650 000 m2.