E-STAR PROPERTY acquires office building in St. Petersburg

Real estate investment company E-STAR PROPERTY AS has signed a letter of intent to purchase a 7200 m2 office building in St. Petersburg, Russia, from Stockholm listed Russian real estate developer Ruric AB.

The purchase price will be USD 30 million subject to a six year lease to a Swiss multinational and represents a triple net yield of 8,5 percent in the first year.

Moscow real sector to grow

Moscow's real economy growth is projected to reach 11-12 percent in 2007, Moscow Mayor Yury Luzhkov told a real estate taxation conference, adding that the non-financial sector had started developing at a steady pace after the financial crisis of 1998 and had been gaining 11 percent annually. Luzhkov added that Moscow's GRP was expected to double by as early as 2009, a year earlier than envisioned by President Vladimir Putin's program.

Russian commercial real estate market set to expand

RBC, 05.12.2007, Moscow 19:57:40.Russia's commercial real estate market is set to grow by 10 to 15 percent on average, experts believe. This year, Moscow, St. Petersburg and other cities with the population exceeding 1m people have seen a rise in new commercial real estate facilities put in operation. A significant increase in demand for commercial real estate is linked to a certain degree to the fact that this business is fashionable, stable and remunerative.

Moscow's real estate market is already nearing saturation, and the focus is shifting towards regions. In Moscow, demand is rising for larger real estate formats, and most retail operators are looking to expand their format. New formats are likely to appear, alongside the development of smaller-area convenience stores.

This Bubble Won't Burst

Boasting 13 years of experience in Russia's real estate market, Jones Lang LaSalle has become a true household name in this business here. In a recent interview with The Moscow News, JLL's Managing Director in Russia, Mark Jagger, explained the reasons behind the investors' foray into the country's far-flung regions, told us why Russia needs twice as many more shopping malls and offered a view on the impact of the credit crunch.