AVICA Took Part in Russian Breakfast at MIPIM 2016


Today, the business event Russian Breakfast took place as part of the international exhibition MIPIM 2016. In the course of the discussion, Natalia Tischendorf announced that in 2016 the Russian and foreign investors will target for purchase of “trophy” facilities.

Today, there are about 15 active investors ready to buy high quality office and shopping centers in the Russian real estate market. Despite the fact that the local market is still dominated by the local players, during the last year, the investors from Asia and the Middle East started paying closer attention to the Russian facilities. This year, there may be 1–2 transactions with participation of the players from Asia and the Middle East, commented in her speech at Russian Breakfast Natalia Tischendorf, CEO of AVICA.

According to the expert, in 2016, the investors, first of all, will aim at acquisition of the so-called “trophy” facilities located in the center of Moscow. However, the investors changed the approach to assessment of assets: if earlier the key criterion was profitability of the facility, given the current conditions, this indicator ceased to be crucial, as it can show quality growth in the future due to the improvement in the market situation and professional asset management. Nowadays, the purchaser is guided more by the price of 1 sq. m as of the purchase moment, counting on increase of the price per 1 sq. m upon the end of the recession.

In 2015, the volume of the investments in the real estate of Russia reduced down to USD 2.5 bln as compared to USD 3.7 bln in 2014. Due to high volatility of the rouble exchange rate, many investors and assets owners postponed their decisions on closing deals in 2015–2016.

Natalia Tischendorf emphasized that previously a real estate transaction closed during 6 months under the stable market conditions, while now closing a deal takes from 9 to 12 months. Moreover, fall of the rouble exchange rate had an adverse effect on the cost of the assets: some real estate facilities suffered a 30–50 % loss in the prices in comparison to the year 2014, therefore, many owners postpone closing deals in expectation of the price growth. Starting from the second half of 2015, there were the so-called “forced” sales of assets by the owners who either experienced difficulties with redemption of loans to the banks or changed their strategy and left the real estate market.

The business event Russian Breakfast attended Natalia Tischendorf, CEO of AVICA, Alexander Olkhovsky, Vice President of VTB Bank, Dmitry Mints, Chairman of the Management Board of O1 Properties, Nikolay Kazansky, Managing Partner of Colliers International Russia, Victoria Kruglova, Senior Vice President of Gals Development and other market experts. The event was organized by IM Events.