Development Project for a 15,000 m² Warehouse and Transshipment Complex near Pivdennyi Port

Key Investment Project Parameters

• Land plot area — 7 ha
• Land value — USD 2.1 million
• Warehouse area — 14,688 m²
• Number of warehouses — 4 units
• Total storage capacity — 84,000 m³
• Receiving facility capacity — up to 150 tonnes per hour
• Construction budget including contingency — approximately USD 6.47 million
• Total investment including land acquisition — approximately USD 8.57 million

Project Information

A preliminary concept has been developed for the construction of a warehouse and transshipment complex. The preliminary design enables a prospective buyer to assess the development configuration, warehouse capacity, required capital expenditure, and potential project returns.

Investment Attractiveness of the Project

1. Strategic port-adjacent location. The location in the Biliari area provides proximity to Pivdennyi Port and one of the largest industrial and logistics clusters in the Odesa Region.
2. Proximity to the marine area. The site is located approximately 1 km from the waterfront, creating favourable conditions for the development of port-adjacent warehousing, logistics, and transshipment infrastructure.
3. Potential railway connection. The site directly borders a railway line, making it possible to construct a dedicated railway spur to the complex.
4. Convenient road access. The site is located along a major road, providing convenient access for heavy vehicles, strong transport connectivity, and good visibility of the property.
5. Substantial land area. The 7-hectare industrial land plot with flat terrain can accommodate almost 15,000 m² of warehouse space, a technological zone, an administrative building, internal roads, and truck handling areas.
6. High simultaneous storage capacity. Depending on warehouse configuration, loading technology, and product characteristics, the complex can store up to 60,000–63,000 tonnes of wheat or corn at any one time.
7. Flexible use. The warehouses can be adapted for the storage of grain, oilseeds, meal, compound feed, fertilisers, general cargo, and other dry cargoes.
8. Several monetisation models. The investor may use a rental, operating, or combined model, combining the leasing of warehouse space with cargo reception, storage, accumulation, and transshipment services.
9. Asset capitalisation potential. Following completion of construction, commencement of operations, and execution of long-term contracts, the facility may be sold as a completed income-generating asset or as an integrated warehouse and terminal business.

The project may be of interest to:

• agricultural traders and exporters;
• port, stevedoring, and logistics operators;
• agricultural producers and processors;
• companies handling grain, oilseeds, meal, compound feed, and other bulk cargoes;
• warehouse property developers;
• infrastructure and strategic investors.

Development Concept

The preliminary design provides for the construction of:

• four flat-storage warehouses;
• a receiving facility with a capacity of up to 150 tonnes per hour;
• an administrative building;
• a paved concrete logistics yard;
• internal roads and an access road;
• perimeter fencing and access-control infrastructure;
• technological equipment for receiving and moving products.

The concept provides for four separate warehouse buildings arranged around a central technological zone, together with truck manoeuvring areas, an administrative building, and a separate entrance to the site.

The total area of the four warehouses is 14,688 m², while their combined storage capacity is approximately 84,000 m³.

Specifications of One Warehouse

• Dimensions — 36 × 102 m
• Area — 3,672 m²
• Clear height to roof truss — 11 m
• Ridge height — 13.7 m
• Internal columns — none
• Storage volume — approximately 21,000 m³

Depending on the type of product, the complex can simultaneously accommodate:

• Corn — up to 60,400 tonnes
• Wheat — up to 63,000 tonnes
• Sunflower seed — up to 35,200 tonnes
• Soybeans — up to 67,200 tonnes

Investment Budget

• Construction of four warehouses, 14,688 m² — UAH 148.14 million
• Administrative building — UAH 4.80 million
• Receiving facility — UAH 39.81 millionAccess road — UAH 4.09 million
• Concrete yard — UAH 52.29 million
• Perimeter fencing — UAH 2.17 million

Total cost including VAT — UAH 251.32 million
Total cost in USD including VAT — USD 5.63 million

The budget does not include site grading, utility connections, or truck scales. Their cost may be determined after completion of the full design and receipt of technical connection specifications. A 15% contingency has therefore been included in the financial model.

• Construction — USD 5.63 million
• Contingency reserve of 15% — USD 0.84 million
• Land acquisition — USD 2.10 million
• Total investment — USD 8.57 million

* The budget does not include working capital or additional specialised equipment.

Model No. 1. Leasing Warehouse Space

The model provides for leasing the complex to one major tenant or several operators. Market rental rates ranging from USD 6 to USD 8 per m² per month have been used in the calculations.

Key Assumptions

• leasable area — 14,688 m²;
• owner’s expenses and repair reserve — 15% of revenue;
• total investment — USD 8.57 million.

Operating Indicators

Asset Capitalisation

Capitalisation rates of 14% in the pessimistic scenario, 12% in the base case, and 10% in the optimistic scenario were applied to value the stabilised warehouse complex.

Five-Year Model with Asset Disposal

The calculation assumes annual NOI growth of 1% in the pessimistic scenario, 2% in the base case, and 3% in the optimistic scenario. The asset is expected to be sold at the end of Year 5. Selling costs are assumed at 3% of the transaction value.

Model No. 2. Cargo Reception, Storage, and Transshipment

The operating model provides for cargo reception, unloading, weighing, storage, batch formation, and subsequent dispatch services.

Key Assumptions

• capacity per operating cycle — approximately 60,000 tonnes;
• pessimistic scenario — 4 cycles per year at a tariff of USD 10 per tonne;
• base-case scenario — 5 cycles per year at a tariff of USD 11 per tonne;
• optimistic scenario — 6 cycles per year at a tariff of USD 12 per tonne;
• total investment — USD 8.57 million.

Operating Indicators

Capitalisation of the Operating Business

Five-Year Model with Business Sale

The model assumes annual EBITDA growth of 2% in the pessimistic scenario, 3% in the base case, and 5% in the optimistic scenario. The business is expected to be sold at the end of Year 5. Selling costs are assumed at 3% of the transaction value.

Conclusion

The rental model provides more stable income and lower operational complexity. The operating model offers higher return potential but requires an established cargo base, a professional team, specialised equipment, and agreements with port operators.