Hungarian investment fund TriGranit Development Corporation is entering Russia’s real estate market. Together with Gazprom’s subsidiary Gazprombank-Invest, the company will create a joint venture for investing into Russian real estate. The fund will become the largest on the market – at least ˆ5 billion.
TriGranit Development Corporation and Gazprombank-Invest will create an investment fund with equal shares of participation. The fund will invest into Russian developers’ projects. TriGranit’s share in the fund will be ˆ5 billion, while Gazprombank will bring its share partially in money and partially in land sites.
Gazprombank will be responsible for project developing, while TriGranit will attract fnds. The joint venture will invest into real estate in Krasnodar, Moscow, St.Petersburg, and Yaroslavl.
The venture is to become the largest fund investing into Russian real estate. However, TriGranit might encounter difficulties with finding projects for investing the announced sum, for ˆ5 billion is more than the total amount of investment into the whole Russia’s real estate market last year ($4 billion). However, the Hungarian company hopes that profitability of its investments will be higher than average for Russia.
&Largest funds at Russia’s real estate market
Fund Announced investment amount ($ billion)
Quinn Properties 5.2
Meinl European Land 2.3
Raven Russia 2
Fleming Family & Partners 1.15
London Regional Properties 1
Source: the companies’ data
