Notification on the auction to sell the right to conclude an agreement for lease of three land plots for the integrated development for housing construction

Notification

on the auction to sell the right to conclude an agreement for lease of three land plots for the integrated development for housing construction

Based on the resolutions of the Board of Directors of the RHD Foundation (Minutes of Meeting No. 10 of February 24, 2012), the Russian Federal Housing Development Foundation (hereinafter referred to as the RHD Foundation) informs about the repeated auction of open participant structure and open form of bidding for lease agreement of two land plots being a part of the unique lot of total area 1,330,364 sq. m. (cadastre number: 52:24:0040001:561, 52:24:0040001:557, 52:24:0040001:559), located at: Nizhny Novgorod Region, Bogorodsky district, area adjacent to Novinki settlement, for their integrated development for housing construction (hereinafter respectively referred to as the Auction, Lease Agreement, Land Plots.

The auction will be held on March 30, 2012 at 13.00, at the following address: 4, Slavyanskaya Ploshchad, building 1, central entrance, office 321, Moscow.

The Auction is organized by the RHD Foundation.

Starting lease price of the Plot is
3,012,000 (three million twelve thousand) rubles, including VAT 18%.

The value of the starting price increase rate (auction increment) is: 100,000 (one hundred thousand) rubles.

The rent for the Plot is determined in the amount of
8 (eight) rubles 31 kopeks, including VAT 18% per 1 sq. m. of the Plot area a year and not subject to change during the lease term. The procedure for payment of the rent is determined by the lease agreement.

The repurchase price of 1 sq. m. of total area of the land plots intended for integrated development for housing and other construction, formed of the Plot after its division, shall be determined as follows: the amount of repurchase price of this land plot calculated on the basis of administration of Novgorod Region dd. December 17, 2007 No. 299 «Concerning Establishment of Sales Price of Land Plots to Owners of Buildings, Structures, Constructions located thereat» and equal to 2 (two) rubles 87 kopeks, not subject to VAT, per 1 sq. m. of total area of the land plot, increased by the amount of rent per 1 sq. m. of the land plot subject to payment during the lease term of that land plot including VAT 18%, less the amount of rent paid in compliance with the lease agreement.

Lease term shall be 10 (ten) years after signing of the Transfer and Acceptance Act for the Plot. Period for payment of the rent in amount of 50% of market rent amount shall be 4 (four) quarters.

Restrictions on the economic, business and other activities, possession, use and disposal of the Plot, and other limitations related to special legal regime of the Plot shall be determined by the laws of the Russian Federation. The auction winner shall be obliged to comply with the above restrictions.

1. Features of the Plots

Plot № 1

Location (address): Nizhny Novgorod Region, Bogorodsky district, area adjacent to Novinki settlement; Cadastre number 52:24:0040001:561; total area: 340,017 sq. m.; land category: urban land; permitted use: for integrated development of land.

Relevant restrictions (encumbrance) of right: not registered.

Other information about the land plot are given in cadastral certificate of the land plot dd. 07.02.2012 № К-В(ГКУ)/, issued by subsidiary of FSBE «Federal Cadastre Chamber of Federal Service of State Registration, Land Register and Mapping» over Nizhny Novgorod Region.

The owner of the Plot: the RHD Foundation (certificate of the state registration of title of February 13, 2012 52 АД 287628).

Plot № 2

Location (address): Nizhny Novgorod Region, Bogorodsky district, area adjacent to Novinki settlement; Cadastre number 52:24:0040001:557; total area: 402,300 sq. m; land category: urban land; permitted use: for integrated development of land.

Relevant restrictions (encumbrance) of right: not registered.

Other information about the land plot are given in cadastral certificate of the land plot dd. 07.02.2012 № К-В(ГКУ)/, issued by subsidiary of FSBE «Federal Cadastre Chamber of Federal Service of State Registration, Land Register and Mapping» over Nizhny Novgorod Region.

The owner of the Plot: the RHD Foundation (certificate of the state registration of title of February 13, 2012 52 АД 287623).

Area № 3

Location (address): Nizhny Novgorod Region, Bogorodsky district, area adjacent to Novinki settlement; Cadastre number 52:24:0040001:559; total area: 588,047 sq. m; land category: urban land; permitted use: for integrated development of land.

Существующие ограничения (обременения) права: не зарегистрировано.

Relevant restrictions (encumbrance) of right: not registered.

Other information about the land plot are given in cadastral certificate of the land plot dd. 07.02.2012 № К-В(ГКУ)/, issued by subsidiary of FSBE «Federal Cadastre Chamber of Federal Service of State Registration, Land Register and Mapping» over Nizhny Novgorod Region.

The owner of the Plot: the RHD Foundation (certificate of the state registration of title of February 13, 2012 52 АД 287624).

2. Terms and conditions of the integrated development of the Land Plots

2.1. The maximum period for preparation of the draft layout of the territory and boundary-setting plan of the Plot shall be 1 (one) year after signing of the Transfer and Acceptance Act of the Plot.

2.2. The maximum period of works on territory planning through construction of engineering infrastructure facilities upon completion subject to gratuitous transfer to the municipal or federal ownership, or registration as private property,
shall be 11 (eleven) years after signing of the Transfer and Acceptance Act of the Plot.

Other terms of transfer shall be determined in compliance with the laws of the Russian Federation.

2.3. The maximum period of housing and other construction in compliance with the type of permitted use of the Plot intended for housing and other construction shall be 11 (eleven) years after signing of the Transfer and Acceptance Act of the Plot.

2.4. The method to ensure fulfillment of obligation for the integrated development of the Plot for housing construction, including payment of the rent shall be the bank guarantee in amount of the annual rent for the Plot for the period of fulfillment of obligations specified in clauses 2.1-2.3 hereof increased by 3 (three) months.

2.5. The general requirements to the parameters and characteristics of the planned development of the Plot, including construction density and parameters on the area, transportation and engineering and technical support, required for development of the area; minimal amount of the housing construction and other technical and economic parameters of housing construction; requirements to the building materials and technologies used in relation to their energy-efficiency and environmental performance during architectural design and housing construction.

The following issues should be considered during preparation of documents for the territory layout architectural design and housing construction:

2.5.1. Construction of housing including the economy class housing.

2.5.2. Minimal area of apartments in construction shall be 177, 000 sq. m.

2.5.3. The share of the economy class housing shall be at least 75% of total apartment area in construction, and its parameters shall be as follows:

2.5.3.1. The area of the land plot for construction of low-rise free standing residential building is not more than 1,000 sq. m., for a part of the residential house (a residential house of block development) – not more than 400 sq. m. per one part of the residential building (one block of the residential house of block development).

2.5.3.2. Total area of low-rise free standing residential building – not more than 150 sq. m.

2.5.3.3. Total area of one block of the residential house of block development – not more than 150 sq. m.

2.5.3.4. Area of apartments of low-rise free standing residential buildings and residential house of block development  – no less than:

– living room – 14 sq. m;

– bedrooms – 10 sq. m;

– kitchens – 8 sq. m.

2.5.3.5. Area of sections adjacent to apartments for apartments of the first floors of low-rise (up to four levels) of apartment buildings – not more than 60 sq. m.

2.5.3.6. The area of apartments in apartment buildings according to number of rooms and their area (the lower and upper limits of area excluding balconies, terraces, porches, recessed balconies, cold storerooms and lobbies) shall be as follows:

Number of living rooms	1	2	3	4	5	6
Recommended area of apartments (the lower and upper limits of area), sq. m	28-45	44-60	56-80	70-100	84-116	103-126

2.5.3.7. The area of living rooms of apartments in apartment building shall be at least:

– rooms in one-roomed apartments – 14 sq. m;

– living room in apartments with two or more rooms - 16 sq. m;

– bedrooms – 8 sq. m. (10 sq. m. for two persons);

– kitchens – 6 sq. m;

– kitchens (built-in kitchens) in one-room apartments – 5 sq. m.

2.5.3.8. Minimal finishing of rooms, composition and parameters of utility equipment shall be as follows:

2.5.3.8.1. Interior finishing of residential premises in apartment buildings:

Living rooms, corridors, halls:

– ceiling painted;

– walls covered with wallpaper;

– flooring – linoleum;

– skirting boards – wooden.

Bathrooms, toilets:

– ceiling painted;

– walls painted with oil paint and/or faced with ceramic tiles;

– flooring – ceramic tiles;

– skirting boards – ceramic tiles.

Kitchens, storerooms:

– ceiling painted;

– walls painted and/or faced with ceramic tiles;

– flooring – linoleum;

– skirting boards – wooden.

2.5.3.8.2. Interior finishing of common areas (lobbies, staircases, corridors, lift halls, garbage chute areas) of apartment buildings:

Cold entrance lobby areas, garbage rooms, garbage chute areas:

– ceiling – oil paint;

– walls – oil paint;

– flooring – ceramic tiles;

– skirting boards – ceramic tiles.

Staircases, warm entrance lobby areas:

– ceiling painted;

– walls painted;

– flooring – ceramic tiles;

– skirting boards – ceramic tiles.

Corridors, lift halls, lobbies near apartments:

– ceiling painted;

– walls painted;

– flooring – ceramic tiles;

– skirting boards – ceramic tiles.

2.5.3.8.3. Interior finishing of living rooms of free-standing and blocked residential buildings:

Living rooms, corridors, halls:

– ceiling painted;

– walls covered with wallpaper;

– flooring – linoleum;

– skirting boards – wooden.

Bathrooms, toilets:

– ceiling painted;

– walls painted with oil paint and/or faced with ceramic tiles;

– flooring – ceramic tiles;

– skirting boards – ceramic tiles.

Kitchens, storerooms:

– ceiling painted;

– walls painted and/or faced with ceramic tiles;

– flooring – linoleum;

– skirting boards – wooden.

Garages, vestibules adjacent to apartments:

– ceiling painted;

– walls painted;

– flooring – ceramic tiles (vestibules), concrete (garages);

– floor molding – ceramic tiles (vestibules), concrete (garages).

2.5.3.8.4. General characteristics and minimal requirements to sanitary ware, plumbing and millwork:

– windows – window units with double or triple-pane glass (according to heating engineering requirements);

– windowsills – wooden or plastic;

– entrance doors (in apartments) – with solid wood or metal filling;

– interior doors – blank or glass doors;

– installation of sanitary ware, toilets, sinks, kitchen sinks and bathtubs, shall be obligatory.

2.5.3.8.5. Composition of the engineering equipment in apartments of the apartment buildings includes: supply of domestic and drinking water, fire water supply, hot water supply, sewage and water drains; heating, ventilation, smoke protection, electric lighting, power equipment, telephone, radio, television antennas, and call alarm system; cable television and broadband Internet connection; automatic fire alarm, system of warning and evacuation control during a fire, elevators for firefighting units and life saving equipment in compliance with regulatory documents.

2.5.3.8.6. Building and finishing materials as well as materials used for built-in furniture shall be permitted for use by the competent authorities and institutions of sanitary and epidemiological service.

2.5.3.8.7. Concentration of pollutants in the air of residential premises shall not exceed the maximal allowable concentration (MAC) for the atmospheric air in populated areas.

2.5.3.8.8. The level of the electrostatic field on the surface of building and finishing materials shall not exceed 15 kV/m (at a relative humidity of 30-60%.).

2.5.3.8.9. The residential buildings shall be provided with individual or common devices for regulation and consumption records of utility resources.

2.5.3.8.10. Share of public spaces (public development areas, green spaces, streets and passages) for housing areas of low-rise buildings of economy class shall be not less than 20% of the whole territory of the district.

2.5.4. Placing of general education facilities (school, kindergarten) as well as servicing facilities and agencies shall be performed in compliance with standards for provision of citizens with public service facilities specified in construction rules 42.13330.2011 « Construction rules and regulations» and construction rules «Planning and Building of Territories of Low-Rise Residential Development».

2.5.5. The required number of parking lots for organized storage of passenger cars in compliance with requirements of CRR “Parking Lots”.

2.5.6. Compliance with requirements of CRR “Accessibility of buildings and facilities to people with low mobility”.

2.5.7. Allocation of bicycle lanes.

2.5.8. Arrangement of land irrigation.

2.5.9. Exclusion of possible closed circulation zones during design of residential development aeration.

2.5.10. Use of energy-efficient and environmentally friendly construction technologies and building materials in compliance with Federal Law of November 23, 2009, No.261-ФЗ “Concerning energy saving and improvement of energy-efficiency, and amendments in certain legislative acts of the Russian Federation”, Federal Law of December 30, 2009, No.384-ФЗ “Technical regulation on safety of buildings and facilities”, resolution of the Government of the Russian Federation of June 21, 2010, No.1047-р “Concerning approval of the list of national standards and codes of practice (parts of such standards and codes of practice) ensuring compliance with requirements of the Federal Law “Technical regulation on safety of buildings and facilities”, Sanitary rules and norms (SRN) (SanPiN) 2.1.2.2645-10 «Sanitation and Epidemiological Requirements to Board and Lodging in Living Buildings and Rooms».

2.5.11. Application of the following energy-efficient technologies and materials:

– street (adjacent to building) lighting with LED lamps (lights);

– control of systems of the street (adjacent to building) territory (automatic control systems);

– provide installation of frequency-controlled drive during designing water and heating supply at heating points and water pumping stations;

– energy saving lamps (LED, HID) in houses and common areas;

– control of lighting systems in common areas and surrounding territories (equipping entrances and staircases with automatic control systems (motion and presence sensors));

– AUTEC (automated unit of thermal energy control);

– FCD (frequency-controlled drive) in water and heating supply systems;

– for low-rise blocked and sectioned residential buildings they shall provide for energy efficiency not lower than ‘A’ class (SNiP «Thermal Protection of Buildings»);

– automated electricity counting system (AMISEPFA (automated measuring and information system for electric power fiscal accounting)) with the following functional tasks:

– measurement of active energy consumption with high accuracy degree;

– possibility of multi-tariff menu;

– possibility to measure main quality parameters of the energy (deviation of frequency and voltage) in compliance with GOST ;

– access for data configuration and transfer.

2.5.12. When polymer and synthetic building materials, raw materials and materials used in construction are regulated by the hygienic standards in relation to the content of radioactive substances, it is required to obtain the positive sanitary and epidemiological conclusion in the procedure established by order of the Federal Service for Supervision over Consumer Rights Protection and Human Welfare of June 19, 2007, No.224 “Concerning sanitary and epidemiological expertise, studies, research, testing and toxicology, hygiene and other forms of assessment”.

2.5.13. Indicators of sanitary and epidemiological requirements:

– increase in the rated duration of insolation according to clause 5.8 SanPiN 2.1.2.2645-10, ranging up to +0.5 hour;

– microclimate within the allowable limits of GOST ;

– vibration not more than 5 dB (subclause 6.2.2 SanPiN 2.1.2.2645-10);

– maximum noise level of 45 dBA;

– total infrasound level of 70 dB Lin;

– electromagnetic radiation of not more than 4 mT.

2.5.14. In order to provide residential buildings with cable television and broadband Internet connection, the design of complex residential development shall provide the following:

2.5.14.1. Construction of the intra-block telephone conduit of asbestos-concrete or plastic corrugated tubes (PCT) of 100 mm diameter between the constructed buildings; number of channels and their length shall be determined during projecting.

2.5.14.2. Separate non-residential premises or room (usually on the technical floor) in the building for allocation of the equipment for provision of the broadband Internet connection and cable television services, and accommodation of the house connection point as part of the vandal-proof telecommunication cabinet of 620х620х500 mm (width x height x depth) mounted to the wall.

2.5.14.3. The area for accommodation of the house connection point as part of the vandal-proof telecommunication cabinet of 620х620х500 mm (width x height x depth) mounted to the wall in the porch to allocate the equipment for provision of the broadband Internet connection and cable television services.

2.5.14.4. Round-the-clock access to the room or place of the cabinet location.

2.5.14.5. Temperature and humidity in the room shall be within the allowable limits (temperature of 0°С to +40°С, relative humidity 10-90%).

2.5.14.6. The points for connection of the communication equipment to the electric networks of the building in each installation place of the communication equipment. Power supply of the equipment from the AC network of 220 V (the estimated aggregate capacity of the communication equipment amounts to 3 kW). Connection shall be made from the separate machine and the input switch room in the building (porch).

2.5.14.7. Construction of the inter-floor risers (with access to the technical floor) made of two metal (plastic) tubes of at least 50mm diameter, in the residential porches of the building.

2.5.14.8. Places for installation of the distribution communication terminals on all floors (box not bigger than 320х320х90 mm (width x height x depth) mounted to the wall).

2.5.14.9. Cabling of all constructed porches of the building with UTP-25, UTP-10 and RG-11 cables from the places of the communication equipment
installation.

2.6. Housing and other construction on the Plot shall be performed in stages with the minimal amount of commissioning of the residential buildings determined on an annual basis starting from the third year of lease on the accrual basis, including:

– during 3 (three) years of lease – total area of at least 9,834 sq. m;

– during 4 (four) years of lease – total area of at least
29,501 sq. m;

– during 5 (five) years of lease – total area of at least 49,168 sq. m;

– during 6 (six) years of lease – total area of at least 68,835 sq. m;

– by the end of the 7th (seventh) year of lease – total area of at least 88,502 sq. m;

– during 8 (eight) years of lease – total area of at least
108,169 sq. m;

– during 9 (nine) years of lease – total area of at least
127,836 sq. m;

– by the end of the 10th (tenth) year of lease – total area of at least
147,503 sq. m;

– by the end of the 1th (eleventh) year of lease – total area of at least менее sq. m.

2.7. The Lessee of the Plot shall have the exclusive right to purchase or to lease the land plots intended for housing or other construction formed from the Plot transferred to the Lessee for the integrated development for housing construction, except as specified in the lease agreement.

3. Procedure for registration of the participation in the auction

3.1. In order to participate in the auction, the applicant or its representative shall submit to the auction organizer the following documents to be enumerated in the list: auction application of the approved form; (original) payment document marked by the bank as executed in order to confirm the established deposit to be transferred by the applicant for the secured payment made for the right to conclude a lease agreement acquired at the auction; an extract from the Uniform State Register of Legal Entities for legal entities or an extract from the Uniform State Register of Individual Entrepreneurs for individual entrepreneurs issued not later than one month before submitting the application form for participation in the auction (originals); ID duplicates - for individuals (applicant or its representative); documents including proposal on territory layout, division and construction according to rules of land use and development and regulations of urban planning within the boundaries of the Plot.

In case if application is submitted by the representative of the applicant, it shall provide the power of attorney executed in compliance with laws of the Russian Federation (original).

The application and list of the documents shall be submitted in two copies.

3.2. The applicant for participation in the auction may familiarize itself with the auction documentation, duplicated cadastral certificate and duplicated Certificates of State Registration of Title to the land plot from the present notification publication date until the closing date of application acceptance on week days from 11.00 a. m. to 18.00 p. m. (break time from 13.00 p. m. to 14.00 p. m.) at the address indicated in Item 3.3 herein.

The present Notification, auction documentation, duplicated cadastral certificates and duplicated Certificates of State Registration of Title to the Plot may be found at the RHD Foundation official website www. *****.

The applicant for participation in the auction may have clarification of the auction documents based on the written request sent by this applicant to the auction organizer not later than a day before the closing date of application acceptance, and examine the Plot in the presence of auction organizer’s representative based on the written request sent by this applicant to the auction organizer ten (10) days prior to the closing date of application acceptance. The auction organizer notifies the applicant about the time and date of examination within three (3) working days upon the receipt of the written request from the applicant in the form specified in the request.

The contact phone number of the auction organizer: (4,
ext. 326 or 327.

3.3. The applications (of the approved form) with the attached documents specified in Item 3.1 hereof shall be accepted from February 28, 2012 at the following address: 4, Slavyanskaya Ploschad, building 1, entrance 4, room 105, Moscow, on working days from 11.00 a. m. to 18.00 p. m. (break time from13.00 p. m. to 14.00 p. m.). The application acceptance is terminated on March 28, 2012 - at 18.00 p. m.

3.4. In order to participate in the auction the applicant shall make deposit of 3,012,000 (three million twelve thousand) rubles. The deposit payment shall be made in form of money transfer against the Deposit Agreement to be concluded at the application acceptance office under the procedure stipulated in Article 428 of Civil Code of Russian Federation or the Deposit may be transferred to the auction organizer’s bank account specified herein not later than March 28, 2012.

The Deposit shall not be subject to VAT and is made in Russian Federation currency as lump sum against the following banking details: bank Accountin Sberbank of Russia Open Joint Stock Company (Sberbank Of Russia JSC), correspondent Accountin Operation Department of Moscow Regional Office of Bank of Russia, BIC , INN/KPP /. “The Deposit to be made for the land plot to be acquired by the auction (auction registration number)” phrase shall be specified in “Reference” column.

The Deposit is considered made at the moment of money transfer to theRHD Foundation bank account.  

The obligation of Deposit shall not be permitted to be performed by the third parties.

3.5. The auction organizer may cancel the auction not later than fifteen (15) days prior to the auction date and take decision on amendments to be made to the Notification and/or auction documentation not later than five (5) days prior to the closing date of the application acceptance.

4. Procedure for Auctioning, Auction Winner Determination, and Conclusion of Lease Contract

4.1. On March 29, 2012, the RHD Foundation Board located at the address of 4,Slavyanskaya Ploschad, building 1, central entrance, room 321, Moscow, shall consider the applications and documents of the applicants and determine that the Deposit was received from the applicants. Based on the results of considering the applications and the relevant document submitted, the RHD Foundation Board shall take the decision on either admission of the applicants as the auction participants or denial of access to the auction, which is executed in the form of Auction Participant Admission Report.

The Deposit of those applicants that were denied access to the auction shall be refunded within three (3) days after signing the Auction Participant Admission Report.

The auction participants are registered on the auction date during one (1) hour before summing up the auction.

Summing up of the auction shall start at 13.00 p. m. on March 30, 2012, at the following address: 4, Slavyanskaya Ploschad, building 1, central entrance, room 321, Moscow.

4.2. The auction starts with the announcement of the property items, key features, starting sale price of the Plot, the auction increment and procedure of the auction The participants are given numbered cards that they shall raise after declaring of the starting sale price and every next sale price in case they are willing to conclude the agreement in accordance to that price. Every next sale price is declared by the auctioneer by increasing the current sale price by the auction increment. The auctioneer calls the number of the card of the auction participant that was the first to declare the starting or the next sale price, points to that participant, and announces the price declared as the sale price. Then the auctioneer declares the next sale price of the right to conclude the lease agreement according to the auction increment. When the declared price is a multiple of the auction increment, this price is declared by the auction participants by raising the cards and announcing the price. In case of no other bids from other auction participants, the auctioneer repeats the last sale price three times. If neither auction participant raises the card and declares the next sale price until the sale price is repeated for the third time, the auction is finished.

The winner of the auction shall be the participant whose number of the card and the sale price declared were announced last by the auctioneer.

When the auction is finished, the auctioneer declares the sale of the right to conclude the lease agreement, announces the sale price of the right to conclude the lease agreement and the number of the card of the auction winner.

4.3. The auction summary minute shall be the document that certifies the right of the auction winner to conclude the Lease Contract.

4.4. The Deposit shall be refunded to the auction participants except for the auction winner within three (3) days after signing of the auction summary minute. The Deposit made by the auction winner is included in the amount to be paid for the right to conclude the agreement.

4.5. The lease agreement shall be signed with the auction winner not earlier than ten days after the date publishing the information about the auction at the official web-site of the RHD Foundation (www. *****) in the Internet, and not later than twenty days after the auction, provided that the funds equal to the price of the right to conclude the agreement were transferred to the account of the RHD Foundation in amount determined by the auction summary minute.

The organizer of the auction shall publish the information about the auction at the official web-site of the RHD Foundation (www. *****) in the Internet within three days after signing of the auction summary minute.

4.6. The acquired right to conclude the lease agreement shall be paid within five (5) working days after signing of the minutes of the Action results.

4.7. Transfer of the Plot shall be performed on the date of signing the lease agreement. Transfer of the Plot shall be executed in the Transfer and Acceptance Act.

4.8. . If the auction winner refuses to sign or evades signing the auction summary minute or the Lease Contract, the auction winner shall lose its right to conclude the Lease Contract, and the Deposit made by the auction winner will not be refunded, or the auction organizer files a lawsuit against the auction winner with demand to compel it conclude the Contract, refund for the damages or other demands stipulated in the civil legislation.

4.9. In case if the auction is considered cancelled as less than two participants took part in it, the RHD Foundation not later than the next day after the auction shall send a proposal to conclude the lease agreement for the auctioned Plot to the single participant, and in case of its consent, the Foundation shall sign the agreement with it in the manner and in terms prescribed by clauses 4.5-4.7 hereof.