Ilya Davydik of Hutton states: "We're edging towards actual business transactions"
Chatting with Ilya Davydik, the maverick behind HUTTON's industrial revolution
Breaking the mold with industrial innovationGet ready to delve into the groundbreaking world of Ilya Davydik, the visionary partner and CEO of HUTTON, as he ventures far beyond the realm of luxury housing and steps boldly into the industrial sector. Find out what triggered this audacious shift, as we explore the burgeoning NOMAN industrial park in the southeast of Moscow, nestled in the heart of Lyublino.
From penthouse to productionCurious about the driving force behind HUTTON's foray into industrial park construction? Davydik reveals that the decision to dabble in a completely different segment was a strategic move in the company's evolution. Having laid solid foundations in the premium housing market, they expanded their expertise across various real estate segments, from townhouses and business centers GEOLOG and GEOLOG2 on Obruchev Street to the multifunctional LUNAR quarter on Leninsky Prospekt. This diversified portfolio equipped the company with the flexibility essential to thrive in new realms.
As the city kick-started its initiative to support industrial parks, HUTTON saw an inviting opportunity to contribute to Moscow's progress, while addressing strategic challenges — creating system-forming urban locations that resonate with the modern cityscape.
NOMAN: a chameleon among industrial parksLet's unravel the enigma that is the NOMAN industrial park. So, what is this shape-shifting project? Davydik shares that the NOMAN project, while daunting on some fronts, was a conscious decision to explore uncharted waters. After acquiring a land plot under the MAIP large-scale investment project, they had to swiftly adapt to new architectural, design, and construction standards. Building on the knowledge accumulated in different segments, they navigated this new territory with ease — and a healthy dose of ambition.
With over 50% of the project achieved during construction's initial stages, the market success of NOMAN confirmed the project's viability and encouraged HUTTON to pursue new open auctions in this direction.
City-friendly terms with a hefty responsibilityIt's no secret that the city offers attractive land rent of 1 ruble per year for five years for participants in its industrial park program. While these conditions are undeniably enticing, it's crucial to remember the responsibilities that developers bear. According to Davydik, developers are expected to prove financial stability, present a detailed concept, and undergo various stages of coordination. While developing the NOMAN concept, HUTTON was part of the first wave of developers that coordinated the project under new rules. The labor-intensive process of creating a high-poly 3D model, with six attempts at coordination, provided HUTTON an opportunity to display its adaptability in a new market segment.
Modern, clean, and harmonious: the recipe for successWondering what sets the NOMAN industrial park apart? Davydik explains that they are constructing modern production buildings with office blocks, designed for light industrial production and printing products, as well as electronic devices. These enterprises are chosen for their non-intrusive nature, blending gracefully with the urban environment and requiring minimal sanitary zones. Strategically located near the "Lublino" metro station, NOMAN thrives on accessibility for both highly skilled employees and transportation logistics.
The development comprises approximately 10,000 sq.m of production space, with convenient docks for each production. The office blocks, featuring approximately 3,000 sq.m, cater to light industry companies with ergonomics top of mind. The remaining lots will be gradually marketed.
Filling the park with life: the math behind the numbersCurious about the job creation potential of the NOMAN industrial park? According to Davydik, the number of new jobs is estimated at up to 300. These numbers make a substantial contribution to the city's economy and, with some employees expected to come from neighboring districts, help alleviate transportation pressure, making local residents' lives a little easier.
Designing for the future: a balancing actAspects of the city's external appearance are under close scrutiny these days, and the NOMAN industrial park is no exception. In keeping with the times, the architecture of the building undergoes several stages of coordination with Moscow's Main Architecture Department and the mayor. The high-poly 3D model is instrumental in precision-tuning every design detail, ensuring compliance with norms and aesthetic appeal.
When positioned close to residential areas, the building's design is deliberately understated, designed not to dwarf surrounding construction. The style skews hi-tech, with white metal facade cassettes taking center stage. Minimalism abounds, with hints of industrial influence, while large glass areas add spaciousness. Architectural lighting highlights the building's geometry to create an eye-catching finish.
Who calls the NOMAN home?While Davydik couldn't reveal all the tenant secrets, he did hint at a large-scale production facility that would play a key role in shaping Moscow's industrial landscape. For now, the spaces are designed to accommodate a varied selection of electronics, printing, and light industrial companies.
A finger in multiple pies: two more promising industrial projectsHaving tasted success with NOMAN, HUTTON is cooking up more industrial ventures: a plot on Saltikovskaya Street and a site in New Moscow. The Saltikovskaya Street project will house an industrial complex similar to NOMAN, albeit with a twist: a two-building layout consisting of three-story structures. The strategic internal layout, coupled with prime location and transportation accessibility, makes the site a tempting prospect for automotive, petrochemical, construction, or pulp and paper industry productions of varying scales.
In New Moscow, HUTTON has plans for a build-to-suit project for a Ural agro-industrial holding, boasting 32,000 sq.m dedicated to food production — a project born and bred under the MIP program.
The challenges that come when shattering expectationsNo project is without its hurdles, and industrial pursuits are no exception. Davydik acknowledges that connecting external networks is an arduous task when implementing these projects. Having received the construction permit for NOMAN in December 2024, they're banking on a 12-month construction timeline. However, typical contracts with resource-supplying organizations for linking objects to external networks call for a minimum realization term of 18 months, adding six months and a pretty penny to the construction budget. HUTTON is in discussions with the city to find a prompt solution and ensure project completion on schedule.
Working with new types of clients also poses challenges due to differing priorities. Industrial business concerns focus on technical building characteristics, location, and infrastructure demands, rather than aesthetics and architectural concept. Nevertheless, HUTTON is adept at balancing these requirements with the budget.
Growing with the times: an ever-evolving approachDavydik insists that their approach hasn't changed, but rather evolved as they tread this new industrial path. Adapting to the city's architectural requirements while staying within budget has been a learning curve in cooperation, materials expertise, and partner reliability. Above all, this journey has brought them closer to the beating heart of the real business world and the economic impact their endeavors can have on the city.
A unified brand lineup: here or never?Is a unified brand lineup in the works, similar to the residential real estate model? Not yet, Davydik confesses. Each project is tailored to its unique setting, but the potential for a brand to encapsulate the spirit of such projects is on the horizon.
Regional aspirations or a single love affair with Moscow?For the time being, the focus remains steadfast on the capital. As Davydik is regularly invited to regions for construction or consultations, establishing a strong local team is essential to maintain operational efficiency. Until that's in place, the team stays firmly grounded in Moscow's diverse landscape.
The impact of venturing into the unknownWhat's the primary takeaway from HUTTON's adventures in the industrial sector? Davydik champions the importance of adaptability in an ever-changing market landscape. Having established a reputation for luxury housing, they've since evolved into business centers, multifunctional complexes, and now light industrial development. Trying something new, especially in times of turbulence, helps maintain market positions, conquer new niches, and diversify offerings.
- As HUTTON delves into the industrial realm, they have expanded their expertise from luxury housing to other real estate segments, such as investing in technology and general news-worthy projects.
- The NOMAN industrial park, a project under HUTTON, demonstrates their flexibility and adaptability in a new market segment, showcasing a blend of real-estate, finance, and technology innovation.
- The strategic foray into industrial projects, specifically the NOMAN industrial park, has positioned HUTTON as a versatile player in the market, capable of making significant contributions to the city's progress and economy.
