Kardan NV said Tuesday its real estate unit Globe Trade Centre SA is to invest 27 million euros for a 50 percent stake in an office development project in Russia.
The office development, situated near St. Petersburg, is expected to generate annual net revenues of 53 million euros upon its completion.
Completion is scheduled for between 2011 and 2013.
The company said this is its first venture into the Russian real estate market.
Tuesday, April 29, 2008
Friday, April 25, 2008
Developer to Invest Billions in St. Pete
ST. PETERSBURG -- Hungarian property developer TriGranit Development has announced that it will invest $2 billion to $3 billion into new premises in St. Petersburg, including the construction of a shopping and exhibition complex.
The development will be built on the site of the former Badayevskiye warehouses -- wooden buildings dating to the beginning of the 20th century located on Kievskaya Ulitsa, said Sandor Demjan, chairman of the company's board of directors, Interfax reported. The warehouses have caught fire several times in recent years and have been largely destroyed.
TriGranit Development plans to complete construction within four years of obtaining the required permits from city authorities, Demjan told the news agency.
The development will be built on the site of the former Badayevskiye warehouses -- wooden buildings dating to the beginning of the 20th century located on Kievskaya Ulitsa, said Sandor Demjan, chairman of the company's board of directors, Interfax reported. The warehouses have caught fire several times in recent years and have been largely destroyed.
TriGranit Development plans to complete construction within four years of obtaining the required permits from city authorities, Demjan told the news agency.
Monday, April 21, 2008
Real estate developers have blamed the huge disparity between construction costs and sale prices for Moscow apartments
The average sale price for residential housing in Moscow is currently 161,784 rubles ($6,900) per square meter, while the average building cost is just 34,692 rubles ($1,480), according to a survey by the Federal Construction and Housing Maintenance Agency, published on its web site.
Since 2005, sale prices for a square meter of residential housing have climbed 140 percent while construction cost went up only by 64 percent, the report said.
Developers generally concurred with the survey's findings, but many said the huge disparity was the result of a combination of official fees and unofficial payments, a euphemism for bribes, to officials and government structures.
Since 2005, sale prices for a square meter of residential housing have climbed 140 percent while construction cost went up only by 64 percent, the report said.
Developers generally concurred with the survey's findings, but many said the huge disparity was the result of a combination of official fees and unofficial payments, a euphemism for bribes, to officials and government structures.
Thursday, April 17, 2008
Salans snares in-houser for Russia real estate team
Salans has hired a senior in-house lawyer as a partner in Russia, with Xavier Poulet-Mathis joining the firm's real estate practice in Moscow.
Poulet-Mathis moves after a spell as head of legal affairs at Bouyguesstroi, the Russian subsidiary of French construction giant Bouygues Bâtiment International.
Poulet-Mathis had led the legal affairs division at Bouyguesstroi since 2004. Before that he was based in Paris and was responsible for Bouygues’ construction projects in emerging markets since 2001.
His practice focuses on issues related to construction projects in emerging markets, especially in Russia. His experience includes negotiating secured international construction contracts with limited recourse financing.
Poulet-Mathis moves after a spell as head of legal affairs at Bouyguesstroi, the Russian subsidiary of French construction giant Bouygues Bâtiment International.
Poulet-Mathis had led the legal affairs division at Bouyguesstroi since 2004. Before that he was based in Paris and was responsible for Bouygues’ construction projects in emerging markets since 2001.
His practice focuses on issues related to construction projects in emerging markets, especially in Russia. His experience includes negotiating secured international construction contracts with limited recourse financing.
Monday, April 14, 2008
Boom in Moscow’s commercial real estate
Currently commercial real estate in Moscow - including offices, trade and warehouses - offer the highest yields in Europe. At the same time Russia’s regions are also becoming attractive for investors with long-term strategies.
According to Knight Frank research, despite the challenges caused by the global credit crisis, investor interest will only grow.
“The German funds, English, Irish investors - all of the people we would see in the emerging markets. I've just come from Dubai. There's a lot of interest in commercial space there, but because it's all sold strata title it's less attractive for the big investors. What we're seeing here is big funds interested in making big purchases,” said Jeremy Oates, Managing Director of Knight Frank Russia and CIS.
However, Knight Frank says rents are growing faster in Moscow than anywhere else, bar London. Consequently, rapid growth brings its own risks.
Russia's regions serve as a foil to the capital - lacking infrastructure but offering more potential.
According to Knight Frank research, despite the challenges caused by the global credit crisis, investor interest will only grow.
“The German funds, English, Irish investors - all of the people we would see in the emerging markets. I've just come from Dubai. There's a lot of interest in commercial space there, but because it's all sold strata title it's less attractive for the big investors. What we're seeing here is big funds interested in making big purchases,” said Jeremy Oates, Managing Director of Knight Frank Russia and CIS.
However, Knight Frank says rents are growing faster in Moscow than anywhere else, bar London. Consequently, rapid growth brings its own risks.
Russia's regions serve as a foil to the capital - lacking infrastructure but offering more potential.
Saturday, April 12, 2008
From Russia With Cash
Russian real estate - Moscow and St. Petersburg could be the Houston and Dallas of 30 years ago. Yesterday's Texas oilmen are today's Russian banking and commodities tycoons (and their ladies)--with their armored SUVs, haute couture clothes and breathtakingly expensive jewelry.
And just as the oil cowboys in the 1970s were living like they didn't know if tomorrow would come, Russia's newly rich aren't afraid to enjoy their money--while oil prices continue to pump up the country's economy.
And just as the oil cowboys in the 1970s were living like they didn't know if tomorrow would come, Russia's newly rich aren't afraid to enjoy their money--while oil prices continue to pump up the country's economy.
Thursday, April 10, 2008
Real estate in Krasnodar region becomes more attractive for investors than in St. Petersburg
Russian Real Estate - After the announcement of Sochi the capital of Olympic Games for 2014 in 2007, the growth of price for Sochi real estate has practically approached the level of Moscow. Today, according to assessments of the management of Мodus investment-building company, the real estate market of Krasnodar region takes the second place in investment attractiveness in Russia after Moscow, having outstripped St.-Petersburg and Yekaterinburg in its competitiveness.
While expecting the decision of the International Olympic Committee (IOC) and after its announcement, Sochi real estate prices grew by 10% per month while growth of the capital market during 2007 did not exceed a mark of 1-1.5 % per month
While expecting the decision of the International Olympic Committee (IOC) and after its announcement, Sochi real estate prices grew by 10% per month while growth of the capital market during 2007 did not exceed a mark of 1-1.5 % per month
Saturday, April 5, 2008
Red Army Real Estate Riot
April 4, 2008: The Russian armed forces is finally coming to grips with the fact that it will never return to the glory days of the Soviet Union (which dissolved in 1991). The military was called "the Red Army" back then. A sign of these changes is a huge property sale now underway. The military is auctioning off some very valuable property. The armed forces had acquired, during the Cold War, some 135,000 square kilometers of land (including 7,640 bases and 175,000 buildings). A lot of it is now prime real estate, much in demand in a booming economy. It's estimated that all this real estate is worth at least $12 billion. So much of it is being sold off to raise money for construction of housing for the million military personnel still in service.
Tuesday, April 1, 2008
Will Moscow's Real Estate Bubble Burst?
This spring, prime office rents in Moscow are going above $2,000 a square meter, 50 percent higher than rents paid for offices in the "trophy" skyscrapers of midtown Manhattan.
On the supply side, the Moskva-City development marches ahead, hewing to a schedule to bring on line one major building a year until 2015. By then, Moscow, sometimes called the "Manhattan of the East," is to have the 10 tallest office buildings in Europe.
Is Moscow's office market a bubble waiting to pop? The answer is No.
Moscow currently has 7.4 million square meters of modern office space, about the same as Amsterdam. But Moscow has 10.6 million people, compared with Amsterdam's 750,000.
On the supply side, the Moskva-City development marches ahead, hewing to a schedule to bring on line one major building a year until 2015. By then, Moscow, sometimes called the "Manhattan of the East," is to have the 10 tallest office buildings in Europe.
Is Moscow's office market a bubble waiting to pop? The answer is No.
Moscow currently has 7.4 million square meters of modern office space, about the same as Amsterdam. But Moscow has 10.6 million people, compared with Amsterdam's 750,000.
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