PJSC “Detsky Mir” signed the preliminary rent agreement for the new Distribution Center located in Yuzhnouralsky TLC

PJSC “Detsky Mir” (“Detsky Mir”, or “the Company) (MOEX: DSKY), Russia’s largest specialized children’s goods retailer, announces the signing of a preliminary rent agreement for a class A distribution centre with an area of 46,000 sq m located in the transport and logistics complex (TLC) “Yuzhnouralsky” in the Chelyabinsk region.

In accordance with the agreement, entered by the Company and LLC Logic Land, operator of TLC “Yuzhnouralsky“, the leased area can be expanded to 82,000 sq m. PJSC “Detsky Mir” is also entitled to partial or full acquisition of the leased area on market terms. The agreement will be valid for 10 years.

Vladimir Chirakhov, PJSC Detsky Mir Chief Executive Officer, said:

“The development of logistics infrastructure is a key element of the Company’s strategy aimed at efficient and uninterrupted supply of goods for the rapidly growing chain. The new distribution centre in the Urals will help maintain the optimum level of centralisation and effectively serve the Volga region, the Urals, Siberia and the Republic of Kazakhstan.”

At the moment, the logistics support to the business of Detsky Mir Group is provided by two distribution centres located in the Moscow region: Krekshino and Bekasovo. The larger of the two is the Company’s own logistics centre Bekasovo with an area of over 70,000 sq m, which was launched in 2015. Rented Krekshino distribution centre with an area of 20,000 sq m ensures the supply of goods for the customers of Detsky Mir’s online store.

Yuzhnouralsky TLC is one of the Russia’s largest “dry ports” for processing container cargoes, with its own railway tracks, a 14 ha container yard for processing and storage of cargoes and a class A warehouse with an area of 82,000 sq m.