As to the money breakdown in 2006, the shopping space got roughly a half of the amount, around a third was invested in offices, while the remainder went to warehouses and hotels, said C&W/S&R.
Photo: Nikolay Cyiganov
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Built for Aliens
Cross-border investors have won dominant standing on Russia’s market of commercial real estate. Their share reached 62 percent, or around $2.5 billion, in the first three quarters of 2006, said the survey of Cushman & Wakefield Stiles & Riabokobylko (C&W/S&R). The amount will double next year, analysts forecast.
Foreign investors have dominated over the market of Russia for the first time this year, said the survey of C&W/S&R. If the share of cross-border money invested in commercial real estate didn’t exceed 50 percent past year, it stepped up to 62 percent in the first three quarters of 2006, said Sergey Kuznetsov, chief of the capital market department at C&W/S&R. Kuznetsov expects Russia’s market of commercial real estate to widen to $4 billion by the end of this year. 2005 size was $1.4 billion, according to C&W/S&R.
Market players attribute this dynamic advance to the large-scale plans of foreign investors. In the past year, such big funds as Raven Russia ($2.5 billion portfolio), London & Regional Property (L&RP) and Fleming Family & Partners (each of them with portfolio of above $1 billion) have announced intention to approach Russia.
Amid the biggest deals are acquisition of four Mall Gallery Trading Centers by Austrian Meinl European Land for $400 million to $500 million, Immoeast’s purchase of two Zolotoy Vavilons (Gold Babylon) for $200 million. The increase in flow of foreign funds roots in international investment score assigned to Russia this year, said Artem Tsogoev, executive director at Blackwood. Fondy Nedvizhimosty.
As to the money breakdown in 2006, the shopping space got roughly a half of the amount, around a third was invested in offices, while the remainder went to warehouses and hotels, said C&W/S&R.
www.kommersant.com
All the Article in Russian as of Oct. 27, 2006
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