Odessa has always been a plum for developers, traders and other craftspeople. Located at the intersection of international routs between Europe and Asia, Central, Northern Europe and Middle East, the city is connected by shipping transportation lines with more than 600 cities worldwide. Transportation corridor No.9 goes through Odesa City¹.

Currently the city is booming economically: in 2006 production enterprises sold their products at 0 m, and the external goods and service sales turnover amounted to, 850 m. The sea port cargo turnover in 2006 was 30 m ton while the retail turnover was equal to ,25 b².

The turnover determines high demand for warehouse space. Nevertheless, the logistics market in Odesa is characterized by complete absence of Class A warehouse space. The supply is mostly represented by renovated and reconstructed buildings which generally do not meet modern international standards. Moreover, warehouse space delivered is extremely low and does not cover the demand: in 2006 only 80,000 m² were commissioned. This fact leads to an exceedingly low vacancy rate at 1-3% and spiraling rent rates of -16 m² for B Class warehouses. Notwithstanding the high prices, it is the absence of professional warehouse space that keeps many international operators from entering the market. According to Gin Consulting Group report³ the potential volume of the market is only 25% covered. Though many developers now announce their entering the market with about 400,000 m² of warehouse space the market saturation is estimated only in 7-9 year’s time³.

Having in mind the prospects of Odesa Oblast, DD after a careful marketing research decided to set its foot on logistics market ground in the region. The research showed that the Odesa-Kyiv Highway direction is the most advantageous for construction of a logistics park. Several logistics operators are already interested in having their warehouses built along the highway.

The 23.196 ha site bought is situated along the Odesa-Kyiv Highway 5 km from the Klevernyi bridge at Odesa Ring Road. According to the preliminary study, about 120,000 m² can be built on the site. 200 m of the plot face the Highway and the south-western part borders on railway track. The land is free from constructions and vegetation.
Delin Development is a leader developer in Russia currently having a number of projects developed in Ukraine. Among its on-going logistics projects in Ukraine is Kashtan Logistics Park, Kolonshina village of Kyiv Oblast, GLA 226,676 m².

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1 – From www.retailstudio.org
2 – From www.odessa.ua/news/5229/
3 – From «Складская недвижимость» www.gin.com.ua/pdf/2.pdf