Detsky Mir Launches Its First Regional Distribution Center in the South of Russia

Moscow, Russia, 27 July 2020 – Detsky Mir Group (“Detsky Mir” or the “Company”, MOEX: DSKY), the largest specialized children’s goods retailer in Russia and Kazakhstan, announces the launch of its first regional distribution center in the Class A+ industrial PNK Park Rostov-on-Don developed by PNK Group.

With a combined area of 35,000 square meters, the new warehouse facility enjoys a perfect location close to the M-4 Don highway, 7 km away from the city of Rostov-on-Don and 20 km from Platov Airport. Detsky Mir Group has leased 6,000 square meters of warehousing space for seven years with the option to expand. The project’s capex totals around RUB 100 million.

The facility fully meets modern requirements for similar terminals. Its design throughput capacity exceeding 100,000 SKUs, the new regional distribution center will ensure fast and smooth delivery of online orders across the Southern Federal District. The launch of the new warehouse will also create over 150 new jobs within nearby local communities.

For Detsky Mir, this joint project with PNK Group is the third key logistics infrastructure hub. Previously, the Company commissioned two distribution centers totaling 132,000 square meters at PNK Park Bekasovo in the Naro-Fominsk District of the Moscow Region.

“This distribution center is a strategically significant project enabling next-day deliveries for our customers across an entire federal district. I am convinced that the project will meet our expectations and we will continue the expansion of similar logistics hubs across Russia,” noted Maria Davydova, CEO of Detsky Mir Group.

“We have a long-standing partnership with Detsky Mir Group: we built their first distribution center at PNK Park Bekasovo in 2015. The Rostov-on-Don project is our third joint initiative. As a result, our partner currently owns or leases 138,000 square meters of industrial space from PNK Group,” said Dmitry Pilevin, PNK Development Investment Fund Manager. “Rostov-on-Don is a vibrant region. Our existing and potential customers, particularly those in e-commerce, have shown a strong interest in our park. Currently, we can offer them both vacant space in a ready-to-use building and land for development.”

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