Investment Projects

Wholesale distribution center

  • Indicator Results
  • Investment amount, thousand US dollars 5 917
  • NPV of the Project thousand, US dollars 3 858
  • IRR, % 18,4%
  • EBITDA yield, %
  • Payback period, years 5,39
  • Discounted payback period, years - - 7,56

Products

Upon reaching full design capacity in 2027, it is planned to lease the following areas:

  • current areas: vegetable storage (refrigerator) - 2,000 sq. m, vegetable storage (freezer) - 2,000 sq. m, the market - 9 500 sq. m;
  • new areas: a new vegetable store - 3,000 sq. m, wholesale center - 5,580 sq. m.

ORC's clients are fruit and vegetable producers from Zhambyl and neighboring regions, as well as from Kyrgyzstan and Uzbekistan.

Project

The project provides for the modernization and expansion of the wholesale distribution center (ORC), as well as the construction of a wholesale center in the city of Taraz, Zhambyl region. The Project will be implemented on the basis of the largest food market on a land plot of 32.71 hectares.

ORC will include a complex of 8 warehouses with cooling, ventilation and controlled gas environment with a total capacity of 50 thousand tons for storing vegetables, fruits and other food products; phytosanitary and veterinary laboratories; customs clearance zones/customs post.

The initiator formalized a land plot with an area of 32.71 hectares, and also built an office building, 3 warehouses and other facilities. Access roads for road and rail transport have already been brought to the ORC.

Company

Since 2019, ORC Taraz LLP has been carrying out activities for the storage and sale of agricultural products. The company is an affiliated company with Auyl Bereke LLP, which owns a large food market in the Zhambyl region.

Market

  • In 2022, the volume of transport and storage services in the Republic of Kazakhstan amounted to 8,322 billion tenge, which is 6.1% more than in 2021. The average annual market growth rate in the period 2018-2022. reached 2.5%. In the same year, the total area of warehouse facilities in the Republic of Kazakhstan increased by 27% to 1,273 thousand square meters. m compared to 2021
  • In 2022, the number of warehouse facilities in the Republic of Kazakhstan also increased to 2,788 units. Growth in the total number of warehouse facilities in the Republic of Kazakhstan from 2017 to 2022 amounted to 17%. The shares of warehouses for food products, as well as for vegetables and fruits, amounted to 5% and 0.5%, respectively.
  • There is an acute shortage of free warehouse space in the Republic of Kazakhstan. The average load of warehouses in the country is 97%, and in large cities - 100%.
What is the attraction of the project?
  • Favorable location. The developed and extensive system of roads and railways of the region allows organizing the supply of agricultural products from neighboring regions of the Republic of Kazakhstan and neighboring countries. Zhambyl region is also one of the leaders in the production of fruits and vegetables in Kazakhstan.
  • Experience of the Initiator. Since 2019, the Company has been engaged in the storage and sale of agricultural products, having gained a significant base of customers and suppliers. ORC Taraz LLP is an affiliated company with Auyl Bereke LLP, which manages the food market in the region with attendance of up to 20-30 thousand people a day.
  • Governmental support. The project is included in the list of priority sectors for state support, under the programs of which you can receive a number of benefits, preferences and in-kind grants. The availability of resources, state support tools, as well as the use of innovative production technologies, allows increasing production capacity, taking into account export opportunities.
Investment proposal

For the implementation of the Project, financing in the amount of 5,917 thousand US dollars (at the rate of 449.2 tenge) is required, of which:

  • 70% (USD 4,142 thousand) - debt financing;
  • from 30% (1,775 thousand US dollars) - investor participation.
The proposed financing structure and state support measures are indicative, the final financing structure and the stake in the Project will be determined based on the results of joint negotiations with the investor.


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