Alongside the suspension of real estate activities in Eastern Europe, Kardan is trimming its financial services operations, which are traded on the Amsterdam Euronext exchange at a market cap of about NIS 1 billion. These operations include two banks in Russia and Ukraine, which offer consumer loans, mortgage, pension, insurance and asset management services from Slovakia to Turkey.
While Kardan's bank in Russia is continuing to give loans, the Ukrainian bank has stopped in light of that country's tough economic situation, which prompted the government to ask the International Monetary Fund for $16.4 billion in assistance last November.
"Russia is a safer environment than Ukraine," Ickovics said, adding that the future of Kardan's financial activities in Ukraine depended on the overall economy there.
Saturday, February 28, 2009
A taste for the real Riga
Real estate prices have been rising for some time and since budget airlines started flying here from Western Europe in 2004, the Latvian Tourism Development Agency estimates visitor numbers have increased about 25 per cent each year.
As a result, the city has been described by European newspapers as "the new Prague", "the rising star of European destinations", "the hottest real estate market in Eastern Europe", even as "the latest sex-tourism destination".
Among the historic buildings of the Old Town are some of the hippest bars you're likely to see. Nestled between dark stone walls are globular lights swinging over red sofas in minimalist interiors, techno music pumping as dapper bartenders serve sushi.
As a result, the city has been described by European newspapers as "the new Prague", "the rising star of European destinations", "the hottest real estate market in Eastern Europe", even as "the latest sex-tourism destination".
Among the historic buildings of the Old Town are some of the hippest bars you're likely to see. Nestled between dark stone walls are globular lights swinging over red sofas in minimalist interiors, techno music pumping as dapper bartenders serve sushi.
Thursday, February 26, 2009
Sibir's CEO Suspended On Real Estate Probe
Sibir Energy, a London-based oil company, suspended chief executive Henry Cameron pending a probe into the real estate dealings of shareholder Shalva Chigirinsky that will take "months" to complete.
Cameron will continue to help the company "recover all monies owed by any Chigirinsky interest," Sibir said Wednesday. Cameron's deputy, Stuard Detmer, was named acting CEO.
Sibir was suspended from London trading on Feb. 19 after the company said businesses related to Chigirinsky owed the Siberian oil producer $210 million more than indicated in previous statements. A week earlier, Sibir said the former billionaire owed $307.4 million and agreed to sell an airplane and property in Russia, France and Britain to pay the debt by October.
Cameron will continue to help the company "recover all monies owed by any Chigirinsky interest," Sibir said Wednesday. Cameron's deputy, Stuard Detmer, was named acting CEO.
Sibir was suspended from London trading on Feb. 19 after the company said businesses related to Chigirinsky owed the Siberian oil producer $210 million more than indicated in previous statements. A week earlier, Sibir said the former billionaire owed $307.4 million and agreed to sell an airplane and property in Russia, France and Britain to pay the debt by October.
Wednesday, February 25, 2009
Worrying News From Asia/Russia/US Bailouts
"Russian banks asked the government to moderate talks to restructure $US400 billion of loans to foreign banks falling due within four years, said the head of the Russian Association of Regional Banks."
"It would be most effective if the debt were restructured so it's clear to everyone, creditors and borrowers, how the debt will be paid," Aksakov said. "The government has the money. Some companies and banks have rather large hard currency liabilities on their balance sheets."
Speculation of European bank losses on Russian loans drove declines in the euro against the dollar and yen today. Russia has pledged more than $200 billion in emergency funding as plunging oil prices push the world's biggest energy supplier into its worst economic crisis since 1998 when it defaulted.
The euro fell sharply on the report, sliding against the US dollar and the yen. The Australian dollar also fell under 66 US cents, down nearly 2 cents in a day.
The newspaper quoted a Russian banking industry official as saying up to $US400 billion in debt was at stake.
"It would be most effective if the debt were restructured so it's clear to everyone, creditors and borrowers, how the debt will be paid," Aksakov said. "The government has the money. Some companies and banks have rather large hard currency liabilities on their balance sheets."
Speculation of European bank losses on Russian loans drove declines in the euro against the dollar and yen today. Russia has pledged more than $200 billion in emergency funding as plunging oil prices push the world's biggest energy supplier into its worst economic crisis since 1998 when it defaulted.
The euro fell sharply on the report, sliding against the US dollar and the yen. The Australian dollar also fell under 66 US cents, down nearly 2 cents in a day.
The newspaper quoted a Russian banking industry official as saying up to $US400 billion in debt was at stake.
Tuesday, February 24, 2009
Pulkovo Park A Risky Project
Technopolis of Finland said its 150 million euro ($193 million) St. Petersburg project poses the "biggest risk" to the real estate company in 2010 as the economy faces the worst slump in a decade, chief executive Keith Silverang said Wednesday.
The Pulkovo Technopark, located near St. Petersburg's international airport, is the biggest venture in Technopolis' investment pipeline.
"It would represent a heavy hit financially if it launches with a weak occupancy rate," Silverang said. The company has already spent 50 million euros on the development.
The Pulkovo Technopark, located near St. Petersburg's international airport, is the biggest venture in Technopolis' investment pipeline.
"It would represent a heavy hit financially if it launches with a weak occupancy rate," Silverang said. The company has already spent 50 million euros on the development.
Sunday, February 22, 2009
Sibir says investor's debt triple; shares suspended
Sibir said in a regulatory statement that 'various Chigirinsky interests' were further in debt to the company than the $115 million it had previously announced.
'The board of Sibir will now assess the effect of this increase in the indebtedness on Sibir's ability to recover the indebtedness and the consequent impact on Sibir's financial position,' the company said in the statement.
Sibir, which owns oilfields in western Siberia and a 240,000-barrel-per-day refinery in Moscow, had planned to recoup the $115 million by scrapping controversial deals to buy real estate from Chigirinsky.
'The board of Sibir will now assess the effect of this increase in the indebtedness on Sibir's ability to recover the indebtedness and the consequent impact on Sibir's financial position,' the company said in the statement.
Sibir, which owns oilfields in western Siberia and a 240,000-barrel-per-day refinery in Moscow, had planned to recoup the $115 million by scrapping controversial deals to buy real estate from Chigirinsky.
Friday, February 20, 2009
Wells Fargo Takes Back Once-Vibrant BayWalk in St. Petersburg
In a foreclosure auction on Feb. 13, 2009, Wells Fargo Bank regained ownership of BayWalk, a once-vibrant retail/ dining/ entertainment development located in Downtown St. Petersburg, Florida.
In August 2008, The Sembler Company sold its share of Baywalk, which it developed and opened in 2000, to existing partner, Fred Bullard. In November, Wells Fargo filed a foreclosure lawsuit on Baywalk's $14.5 million mortgage. Bullard had intended to redevelop the property, but now that burden falls on Wells Fargo if it seeks to increase the center's worth before putting it up for sale.
According to the Tampa Bay Business Journal, Debartolo Development and M&J Wilkow have expressed interest in buying Baywalk, but have estimated value at no more than $6.5 million. The low value is in part due to the property's segmented ownership -- Muvico owns its 20-screen cinema building and Bullard maintains ownership of the retail space that is part of an adjacent city-owned parking garage.
In August 2008, The Sembler Company sold its share of Baywalk, which it developed and opened in 2000, to existing partner, Fred Bullard. In November, Wells Fargo filed a foreclosure lawsuit on Baywalk's $14.5 million mortgage. Bullard had intended to redevelop the property, but now that burden falls on Wells Fargo if it seeks to increase the center's worth before putting it up for sale.
According to the Tampa Bay Business Journal, Debartolo Development and M&J Wilkow have expressed interest in buying Baywalk, but have estimated value at no more than $6.5 million. The low value is in part due to the property's segmented ownership -- Muvico owns its 20-screen cinema building and Bullard maintains ownership of the retail space that is part of an adjacent city-owned parking garage.
Tuesday, February 17, 2009
The number of Russian billionaires has halved since last year
The ranking of Russia's 400 wealthiest individuals puts the number of dollar billionaires at 49, down from a record 101 last year and just below the 50 counted in 2006.
In all, the country's 10 richest people saw their combined wealth shed $75.9 billion since the magazine's survey last year, as oil prices plunged, financial markets skidded and the ruble fell, Finans said.
The magazine's sneak peek at the list, which is to be released Monday, reveals the names that have fallen out of the rankings — a "who's who" list of businessmen whose firms have been making headlines since the global financial crisis hit Russia.
In all, the country's 10 richest people saw their combined wealth shed $75.9 billion since the magazine's survey last year, as oil prices plunged, financial markets skidded and the ruble fell, Finans said.
The magazine's sneak peek at the list, which is to be released Monday, reveals the names that have fallen out of the rankings — a "who's who" list of businessmen whose firms have been making headlines since the global financial crisis hit Russia.
Sunday, February 15, 2009
Chigirinsky To Sell Real Estate to Pay Debts
Sibir Energy shareholder Shalva Chigirinsky will sell some of his real estate in Russia, France and Britain together with an airplane to repay $307.4 million in debt, the company said Wednesday.
Monday, February 9, 2009
Office rents across Europe fell furthest in Moscow
According to the property consultancy's 'Office Clock', Moscow was hit the worst with a rental value slump of 26.3 per cent in the last three months of 2008.
Warsaw saw rents drop by 15.2 per cent and London's West End saw rents fall by 11.6per cent.
The ‘Office Clock' divides European cities into four quadrants with rental values falling, slowing, accelerating or bottoming out.
Chris Staveley, Head of Jones Lang LaSalle's cross border team said, ‘At the end of 2008 15 markets on our European Office Property Clock were in the quadrant we define as ‘rents falling'.
Warsaw saw rents drop by 15.2 per cent and London's West End saw rents fall by 11.6per cent.
The ‘Office Clock' divides European cities into four quadrants with rental values falling, slowing, accelerating or bottoming out.
Chris Staveley, Head of Jones Lang LaSalle's cross border team said, ‘At the end of 2008 15 markets on our European Office Property Clock were in the quadrant we define as ‘rents falling'.
Tuesday, February 3, 2009
Completion of supertall Moscow skyscraper delayed until 2016
A Moscow skyscraper planned to be one of the world's tallest buildings will not be finished until at least 2016, four years behind schedule, a business daily said on Monday, referring to the Moscow mayor.
Kommersant said Mayor Yury Luzhkov, who visited the Russia Tower construction site in the International Business Center on Saturday, pointed to major violations of the construction schedule. The developer later told the paper the project, which was launched in September 2007, would be delayed until 2016.
"Despite the crisis, I will impose fines for not meeting the [construction] timeframe," Luzhkov said as quoted by Kommersant.
Kommersant said Mayor Yury Luzhkov, who visited the Russia Tower construction site in the International Business Center on Saturday, pointed to major violations of the construction schedule. The developer later told the paper the project, which was launched in September 2007, would be delayed until 2016.
"Despite the crisis, I will impose fines for not meeting the [construction] timeframe," Luzhkov said as quoted by Kommersant.
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