DMITREY MEDVEDEVPRESIDENT OF THE RUSSIAN FEDERATION:

«Land must be made to serve residential construction».

VLADIMIR PUTINTHE PRIME MINISTER OF THE RUSSIAN FEDERATION:

«Developers must be given the maximum choice ofland plots with all necessary infrastructure, includingroads. We are counting on the Housing DevelopmentFoundation to help achieve this».

KEY ISSUES

KEY ISSUES

IS IT SAFE TO INVEST IN RUSSIA?

WHO GUARANTEES LEGALITY OF LANDTRANSACTIONS IN THE RUSSIAN FEDERATION?

IS THE RUSSIAN INVESTMENT MARKET COMPETITIVE?

ARE THERE ANY GUARANTEES THAT INVESTMENTS IN THE RUSSIAN FEDERATION WILL BE SUCCESSFUL?

HOW CAN BUREAUCRATIC OBSTACLES BEOVERCOME?

ARE DIFFERENT STRATEGIES REQUIRED WHEN INVESTING IN SEVERAL REGIONS?

THE RHDF’S SERVICES: A NEW PRODUCT ON THE RUSSIAN NVESTMENT MARKET

LAND PLOTS

SUPPORT IN PROJECT IMPLEMENTATION

A BETTER RETURN ON INVESTMENTS

BY WORKING WITH THE RUSSIAN HOUSING DEVELOPMENT FOUNDATION

YOU RAISE YOUR LEVEL OF SECURITY WHEN INVESTING IN RUSSIA

YOU OBTAIN GUARANTEES OF THE LEGALITY OF LAND TRANSACTIONS IN THE RUSSIAN FEDERATION

YOU OBTAIN ACCURATE INFORMATION ABOUTCOMPETITIVENESS OF THE MARKET

YOU RAISE THE COMMERCIAL EFFICIENCY OF YOUR INVESTMENTS IN THE RUSSIAN FEDERATION

THE RUSSIAN HOUSING FOUNDATION HELPSTO LOWER BUREAUCRATIC BARRIERS

YOU OBTAIN A STANDARD MODE OF OPERATIONFOR INVESTMENTS IN ANY REGION

RUSSIAN HOUSING DEVELOPMENT FOUNDATION

FINANCIAL SUPPORT.ASSISTANCE WITH

FINANCINGBY INVOLVEMENT

OF FINANCIALINSTITUTIONS

THE FOUNDATIONGUARANTEES

LEGALITYOF ANY OPERATIONS

WITH LAND

FULL SUPPORTFOR INVESTORS.

GUARANTEED EXECUTIONOF COMMITMENTS

OPERATIONS IN ALL RUSSIAN REGIONS

REMOVING ADMINISTRATIVE BARRIERS:

ASSISTANCE IN PROJECT IMPLEMENTATION

AT REGIONAL AND LOCAL LEVEL

SUPPORTING TRANSACTIONS WITH OUR CLIENTS

MAKING AN AGREEMENT

SIGNING AN ACTION PLANFOR RESIDENTIAL CONSTRUCTION

WITH THE REGIONALGOVERNOR

AUCTION SCHEDULE

AUCTION

ASSISTANCEWITH TOWN PLANNING

DOCUMENTATIONAND ARCHITECTURAL/

CONSTRUCTION DESIGNSTIMULATING

DEMAND

ASSISTANCEWITH CONNECTION

OF UTILITIES AT PLOTS

MONITORINGIMPLEMENTATION

ASSISTANCEWITH FINANCING

HOW THE FOUNDATION OPERATES

GEOGRAPHY OF THE FOUNDATION’S OPERATIONS

OUR PARTNERS

GOVERNMENT BODIES

THE FEDERAL SERVICE FOR STATE REGISTRATION,

CADASTER AND CARTOGRAPHY

THE FEDERAL AGENCY FOR PROPERTY MANAGEMENT

THE ACCOUNTS CHAMBER OF THE RUSSIAN FEDERATION

THE FEDERAL SERVICE FOR FINANCIAL AND BUDGET

SUPERVISION

THE MINISTRY OF ENERGY OF THE RUSSIAN FEDERATION

NATURAL MONOPOLIES

OJSC FEDERAL GRID

COMPANY, UNITED ENERGY

SYSTEM

OJSC INTER-REGIONAL DISTRIBUTIVE

GRID COMPANIESHOLDING

OJSC GAZPROM

STATE CORPORATIONS

FOUNDATION FOR REFORM OF THE HOUSING UTILTIES

SECTOR

BANK FOR DEVELOPMENT AND FOREIGN ECONOMIC

ACTIVITY (VNESHECONOMBANK)

NON-PROFIT ORGANIZATIONS

NAMIX NON-PROFIT PARTNERSHIP

OJSC AGENCY FOR MORTAGAGE FINANCING OF REAL

ESTATE

OJSC SAVINGS BANK OF

THE RUSSIAN FEDERATION (SBERBANK)

BANKS AND FINANCIAL STUCTURES

KEY STEPS FOR DEVELOPMENT OF THE FOUNDATION IN 2010-2014

CREATION AND DEVELOPMENT OF A UNIFIED INFORMATON AND RESEARCH SYSTEM

IMPROVING TECHNOLOGIES FOR PROVISION OF LAND PLOTS FOR RESIDENTIAL AND OTHER DEVELOPMENT

ENSURING THAT LAND PLOTS ARE PROVIDED WITH UTILITY INFRASTRUCTURE

ENSURING THAT THE RHDF’S LAND PLOTS HAVE NECESSARY TOWN PLANNING DOCUMENTATION

SUPPORT FOR FINANCING

STIMULATING DEMAND

SUPPORTING DEVELOPMENT OF THE CONSTRUCTION MATERIALS INDUSTRY AND OF CONSTRUCTION TECHNOLOGIES

PROJECT:

• Area of the land plot is 98 hectares;

• The lease agreement is for 11 years;

• Maximum time, in which residential construction, other construction and construction of engineering (utility) infrastructure is to be completed, is 11 years;

• Initial price for the right to make a lease contract is $191,808 per hectare per annum;

• Lease payment in the first year is $6,455 per hectare per annum;

• Lease payment in the remaining period is $12,910 per hectare per annum;

• Residential floor is 618,000 sq m;

• IRR is 29%, NPV is $26,614

EXAMPLE OF THE PROJECT IMPLEMENTED IN TYUMEN

DEMAND INDICATORS

Economy class

Business class

Elite

sq m

0,000

200,000

400,000

600,000

800,000

1 000,000

1 200,000

1 400,000

1 600,000

1 800,000

2010 2011 2012

IRR NPV

Single Player RHDF partnership

% $ million

COMPARISON OF INDICATORS WITH AND WITHOUT RHDF INVOLVEMENT

0%

10%

20%

30%

40%

50%

0

5

10

15

20

25

30

PROJECT:

• Area of the land plot is 6,3 hectares;

• The lease agreement is for 5 years;

• Maximum time, in which residential construction, other construction and construction of engineering (utility) infrastructure is to be completed, is 5 years;

• Initial right for the price to make a lease contract is

$67,797 per hectare per annum;

• Lease payment in the first year is $14,319 per hectare

per annum;

• Lease payment in the remaining period is $32,217 per hectare per annum;

• Residential floor space is 68,224 sq m;

• IRR – 32%, NPV – $1,429 288

EXAMPLE OF A PROJECT IMPLEMENTED IN CHEBOKSARY

DEMAND INDICATORS

0,000

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2010 2011 2012

sq m

Economy class

Business class

Elite

IRR NPV

Single Player RHDF partnership

COMPARISON OF THE INDICATORS WITH AND WITHOUT RHDF INVOLVEMENT

0%

10%

20%

30%

40%

50%

0

400

800

1200

1600

2000

% $ Thousands

• Preparation of the land plot for auction

• Holding the auction and signing the agreement

• Design, approval and signing of a plan of project measures

• Provision of guarantees to buy up to 25% of floor space, provided that the new property meets criteria for economy class residential property (set by the Ministry for Regional Development)

ROLE OF THE RUSSIAN HOUSING DEVELOPMENT FOUNDATION

• Support for implementation of the investment project, by coordinating:

Execution by government agencies, natural monopolies, financial and other organizations of their duties for development of land plots

Provision of engineering (utility) infrastructure of the plot

Provision of the mortgage credit to property buyers by the Agency for Housing Mortgage Lending and banks, and assistance to the developer in finance sourcing

Use of standard projects at the land plot

• Speeding up preparation and issue of enabling documentation, and conduct a state expert approval

• Rapid issue of technical conditions for connection to heat networks and external electricity supply

• Construction of social infrastructure

• Assistance with provision of engineering (utility) infrastructure at the plot

ROLE OF REGIONAL GOVERNMENT

Alexander ZhukovDeputy Chairman of the RussianFederation (Chairman of the Board ofTrustees

Elvira NabiullinaMinister of Economic Developmentof the Russian Federation (DeputyChairman of the Board of Trustees)

Kirill AndrosovDeputy Head of the Office of theGovernment of the Russian Federation

Vladimir DmitrievChairman of the State Corporation,“Bank for Development and ExternalEconomic Activity” (Vnesheconombank)

Svetlana OrlovaDeputy Chairman of the FederationCouncil (Upper House of the FederalAssembly of the Russian Federation)

Martin ShakkumChairman of the Committee of the StateDuma (Lower House of the FederalAssembly of the Russian Federation) forConstruction and Land Relations

Arkady DvorkovichAssistant to the President of the RussianFederation (Deputy Chairman of theBoard of Trustees)

Victor BasarginMinister of Regional Developmentof the Russian Federation (DeputyChairman of the Board of Trustees) Alexander Braverman

General Director of the RussianHousing Development Foundation

Igor KuzinDirector of the Department for BudgetPolicy in Sectors of the Economy atthe Ministry of Finance of the RussianFederationКузин

Gennady BinkoDeputy General Director of OJSCInter-regional Distribution GridCompany Holding

MEMBERSHIP OF THE BOARD OF TRUSTEES OF THE RUSSIAN HOUSING DEVELOPMENT FOUNDATION

BUILDING 1, 4 SLAVYANSKAYA SQUARE, MOSCOW, 109074TELEPHONE: +7 (495) 685-94-40 FAX: +7 (495) 698-41-40EMAIL: INFO@FONDRGS.RUWEB: WWW.FONDRGS.RU