Executive summary
The Multilogistics and Business Centre of Slovenia in Arnovski gozd near Celje is a logistics development project by Era Group.. The project is located in the immediate vicinity of the Koper-Ljubljana-Maribor motorway (46°16'0''S, 15°11'15''E), which lies partly in the 5th Pan-European Transport Corridor Barcelona -Kiev, and in the proximity to 10th Corridor, linking Europe's north and south. The location of Arnovski Gozd is perfect for goods arriving from the direction of Italy, Switzerland and France. In addition, it is equally suitable for goods arriving from Hungary, the Czech Republic and Slovakia on the way to the Port of Koper or goods shipped through the Port of Koper to the landlocked countries of Central Europe.

Arnovski Gozd on the third development axis, which is set to drive investment in Žalec, Velenje, and Dravograd. The location is ideally suited for the distribution of goods across Slovenia, and as a logical central point for storage of goods in a single location, for their subsequent distribution anywhere in the world.

The size (90.500m2 property) and infrastructure layout are ideal for the development of a logistics platform according to the rules and regulations of the business. The fact that the industrial centres Nazarje, Velenje, Žalec, and Celje can be reached in half an hour or less guarantees a market for logistics services, which makes Arnovski gozd the top location for any logistics specialist in the 5th Corridor.

Current status
1).100% owned and managed by Era Group
2).Project documentation completed for approx. 35,000m2 of warehouse and logistics facilities, and approx. 100,000 EuroPool palette slots
3).In the process of obtaining all necessary permits & documents
4).Planned beginning of Phase 1 construction in 2011-2012
5).Gathering expressions of interest from local industrial centres and other interested parties

Investment opportunity
We offer two main investment packages to potential investors, depending on the requested extent  of control. Other investment packages can also be arranged upon request and expression of interest.

1) Partnership in SPV
A new SPV will be established, that will build and operate the MLBC for a period of at least 5 years
Present owner will invest property in value of €9m and provide daily operation crew and capability, as well as initial customers
Investor will invest roughly €70m in order to construct and commission the MLBC (estimated time to commissioning: 2 years)
Possible exit point after 5 years
Expected ROI 15% per year

2) Long-term financing
Investor will provide long-term financing for a period of 15-20 years
Grace period of 2 years required
Expected annual interest rate EURIBOR + 3%
 
Investment required
Depends on investment package and arrangements. Estimated at €70m.

Advantages
Era Group is a solid, sound, and experienced partner, interested in forming a long-term business relationship based on the investment, with potential to expand both in Slovenia and in the Western Balkans.

Era Group focuses on development of wholesale and logistics projects, especially in the fields of foods and non-foods distribution, building upon years of experience in the field. Today it operates two wholesale chains with multilogistics distribution networks in Slovenia and is the sole proprietor of Skopje Fair / Era City Complex in Skopje, FYR of Macedonia. In the course of developing the plans for the erection of the logistics platform and during system implementation we at the Era Group aim to work together with our partners in this project in order to identify and implement the best solutions. The Arnovski gozd site, which is at the hub of vital transport routes in Slovenia, provides a perfect opportunity for the implementation of the proposed Multilogistics and Business Centre of Slovenia. Together we can design a comprehensive logistic control system incorporating the option for a subsequent development of other logistics platforms and their integration into a network. It is our objective for the Arnovski gozd site to become a model for the development of future centres of this type.