28 October 2020

Lenta Is Launching a New Distribution Centre in Leningrad Region

St. Petersburg, Russia, 28 October 2020 – Lenta (LSE, MOEX: LNTA), one of the largest retail chains in Russia, is announcing the launch of its thirteenth owned distribution centre, which was opened in the Tosnensky District, Leningrad Region. The project was implemented by Orientir, a leader in the warehouse development market.

Located 20 km from the Saint Petersburg Ring Road (taking the M10 Federal Highway), the new distribution centre will supply the Company’s stores in St. Petersburg and the Northwest. While the distribution centre itself measures 70,000 m2 overall, its territory covers about 20 ha, with a reserved area allowing room for the potential expansion of another 10,000 m2 of warehouse capacity.

The centre meets the latest requirements of the food retail industry, accommodating both a preparation area for ready-to-cook meals and dishes and a multitemperature area with six separate compartments, including ambient, chilled, and frozen ones. The distribution centre will create 650 new jobs, with all the necessary office and supporting infrastructure to ensure the smooth running of the site. The new facility will supply over 100 Lenta stores across 20 locations in the North-Western region, including supermarkets and hypermarkets.

Over 1,500 producers supply their products to the multitemperature warehouse, including those from the Leningrad Oblast.

The new distribution centre will enable the Company to support its further expansion plans and centralise the management of its own production facilities to improve product quality and speed up delivery.

The multitemperature warehouse was constructed by Orientir, one of Moscow’s largest warehouse developers.

Over RUB 4 billion was invested into the development of product-delivery infrastructure in Leningrad Region.

Lenta’s Chief Executive Officer Vladimir Sorokin said:
“The opening of the new distribution centre, which combines a preparation area with a multitemperature space, is an important step towards centralising the management of our own production and a prerequisite for maintaining the existing product assortment. Our goal is to ensure consistent quality and ideal freshness of our products, deliver them to stores quickly and minimise our costs. The new distribution centre will allow us to reach this goal.”

Elena Bondarchuk, a shareholder in Orientir, said:
“The warehouse we built for our partner, Lenta, meets the latest requirements for food retail and is flexible enough to accommodate the changing demand in the market.

This build-to-suit for sale project situated in our Orientir St. Petersburg industrial park is tailored to the meet specific requirements of the client. Orientir’s professional and highly competent team has succeeded in completing the construction, obtaining all necessary approvals and delivering the property to the client within a tight framework and without compromising on quality.

Having such a highly customised facility in a region that is strategic for Lenta – located right on an important transport artery leading into the city – will help our partner cement its leadership in the market and successfully expand its logistics operations.”

For more details visit http://www.lentainvestor.com or get in touch with the contacts below:

Lenta 
Timofey Goncharuk
PR Manager
Tel.: +7 812 380 6131, ext. 1984
Email: timofey.goncharuk@lenta.com

NW Advisors
Victoria Afonina
Tel.: +7 495 795 0623
Email: lenta@nwadvisors.com

ORIENTIR:

Ulyana Morozova
Orientir, full-service developer
Press secretary
Mob.: +7 965 331 2013
Email: morozova.u@depo247.com.

About Lenta
Lenta is the largest hypermarket chain in Russia and the country’s third largest retail chain. The Company was founded in 1993 in St. Petersburg.

Lenta operates 250 hypermarkets in 88 cities across Russia and 136 supermarkets in Moscow, St. Petersburg, Novosibirsk, Yekaterinburg and the Central region with a total of approximately 1.5 mn sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,500 sq.m. The average Lenta supermarket store has selling space of approximately 800 sq.m. The Company operates twelve distribution centres.

The Company’s price-led hypermarket formats are differentiated in terms of their promotion and pricing strategies as well as their local product assortment. The Company employed approximately 48,391 people as of 31 December 20191.

The Company’s management team combines a mix of local knowledge and international expertise coupled with extensive operational experience in Russia. Lenta’s largest shareholders include Severgroup, which is committed to maintaining high standards of corporate governance. Lenta is listed on the London Stock Exchange and on the Moscow Exchange and trades under the ticker: ‘LNTA’. A brief video summary on Lenta’s business and its Big Data initiative can be seen here.

Orientir is a full-service developer of commercial property. Orientir specialises in the construction and management of advanced A+ warehouse facilities, with a unique experience in building the Moscow Region’s largest consumer goods and food distribution centres. Orientir has a successful track record of delivering over 1,000,000 sq. m of warehouse and industrial projects of varying levels of complexity, from specialised ambient warehouses and warehouses with controlled temperature and deep freezes, to other specialised warehouses, including those licenced to store alcohol and pharmaceutical products. The company’s portfolio includes six warehouse parks in the north, west and south of the Moscow Region, including two fully completed and occupied projects, some of these build-to-suit for sale, as well as new projects under development. The company’s clients include Utkonos, X5 Retail Group, Ozon, O`KEY, Miratorg and others.

Orientir has been recognised with prizes at the prestigious Commercial Real Estate Awards for several years running since 2016.

In 2019, Industrial Park Orientir in the Solnechnogorsk District was awarded by the Governor of the Moscow Region as the Best Industrial Park of the Year.
In June 2019, the company launched the construction of the Orientir-Zapad warehouse facility in the Istra Municipal District (Moscow Region), set to become Russia’s second largest warehouse.

In June 2019, Orientir launched the construction of a multi-temperature facility for the Russian hypermarket chain Lenta in St. Petersburg. The deal was the largest in Russia since the beginning of the year.

In June 2020, Orientir and Ozon, one of Russia’s largest e-commerce players, agreed on a lease of 155,000 sq. m in the Orientir-Zapad park. The project marked another milestone in the two companies’ joint development journey and the largest transaction in the Russian warehouse market (concurrent construction of the entire project without breaking it down into individual phases or stages).

In July 2020, the Russian Direct Investment Fund (RDIF, Russia’s sovereign wealth fund), Mubadala Investment Company (the UAE’s sovereign wealth fund) and a number of major Middle East investment funds acquired the Orientir Sever-1 logistics park from Orientir. The purchase of the park, located in the Solnechnogorsk District (Moscow Region) and measuring 114,000 sq. m overall, has become the year’s largest investment deal.

In October 2020, the fulfilment centre built by Orientir for Ozon in the Orientir Sever-1 park was named the Best Warehouse Facility at the Arendator Awards.