Investment Proposal Memo
Introduction
It is proposed that a new hypermarket be opened to the south of Novosibirsk offering a wide product range at a low cost, twenty-four hours a day, excluding weekends.
On the south of Novosibirsk we should to open new hypermarket with wide product range on our low-cost offering круглосуточно без выходных.
Analysis of the local retail market showsed that it is the market of the product retail far from saturation. At the momenttime /presently, both in St. Petersburg and Krasnodar have two hypermarkets per on 100,000 thousand of people, whilst there are two hypermarkets in Novosibirsk hasve less than one.
Recently opened near Novosibirsk A new logistics distribution center capable of handling volumes required for have at least 5 hypermarkets recently opened near Novosibirsk.
Deal
We Nneed to buy a plot of land in the property and prepare it for the construction of a hypermarket.
The cost of plot preparation is estimated at 300 million rRubles. We will need to build On the prepared plot have to build a hypermarket with a full area of about 12,000 square meters on the prepared plot, with 7,000 square meters allocated for trading space.
On tThe construction of the hypermarket requires investment totalling 700 million rRubles of investments.
Market
The following retail chains are currently operating in NovosibirskIn Novosibirsk presented federal retail chains : 3 Auchan stores , 2 Okay stores, 5 Lenta hypermarkets of Lenta. Thereforeby, for 1,5 million of Novosibirsk citizens suitedthere are currently 10 hypermarkets, or in other words, 150 thousand people for oneper hypermarket, which is an indicator of the potential of the local market.
Hiring Plan
For the operation of hypermarkets It will be required to hire about 300 new employees for the operation of the hypermarket. With an average salary of 35,000 thousand rRubles, the total payroll found will be about 10.,5 million rRubles per month.
Financial Plan
Initial investment to in the hypermarket will be amount 1 billion of rRubles:
Purchase of plot of land – 160 million rRubles for 40,000 square meters ($100/m2)
Engineer works and land improvement – 140 million rRubles
Development – 480 million rRubles (40,000 thousand rRubles/per m2)
Engineering – 13 million rRubles
Utility networks and hypermarket internal improvement – 207 million rRubles