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Moscow

Russian real estate investment volume is up 20% YoY in Q3 2012

Jones Lang LaSalle announces Q3 2012 results in Russian real estate investment market.


Moscow, 08 October 2012 – Jones Lang LaSalle announces Q3 2012 results in Russian real estate investment market.

In Q3 2012 investment into real estate gained momentum, with the total volume of Q3 2012 investment in Russia up 20% YoY, to USD2.4bn compared to USD1.96bn in the same period of 2011. At the same time, commercial real estate investment volumes reached USD5bn in Q1-Q3 2012 vs. USD6bn in the same period of the previous year.


Investment volume dynamics, USD bn*

Graph6.png

​* Investment deals, excluding land purchases, JVs, direct residential sales to end-users
Source: Jones Lang LaSalle

Olesya Dzuba, Head of Capital Markets Research, Jones Lang LaSalle, Russia & CIS, added: «This year investment volume is expected to be lower than previous – USD6.5bn vs. USD8.5bn in 2011. Nevertheless, we observe upward trend of Russian investment volume in 2012 compared to 2010. Both international and domestic investors’ demand is focused on high quality assets in Russia. For example: Russian company O1 Properties acquired Silver City business centre from Evans Randall; Peresvet company sold Himeney shopping centre to Alexander Udodov; and BIN Group purchased a real estate portfolio for USD983m.


In Q1-Q3 2012 retail and office segments attracted the vast majority of investment capital – 26.3% and 34.2% respectively. Additionally, the investment into warehouse sector reached 10.5% compared to 6.4% in Q1-Q3 2011.

InvestmentsbyRealEstateSectorQ1-Q320112012_08102012.png

 
Source: Jones Lang LaSalle


Russian investors remained strong in Q1-Q3 2012, accounting for 80% of the total investment volumes vs. 62% in Q1-Q3 2011. Moscow’s market is still the priority for investors, accounting for 95% of the total real estate investment volume. We expect foreign investors’ activity to be high this year, at least at the same level as in 2011-H1 2012 (in 2011 foreign investors’ deals accounted for 38% of the total investment volume).

Olesya Dzuba added: «Our expectations about increasing investments into warehouse market are starting to be realized. Several deals were closed in Q3 2012: Fleming Family and Partners sold warehouse complex in Sholokhovo to Raven Russia for USD50m; three companies have signed agreements with PNK Group for developing built-to-suit warehouses at PNK-Vnukovo site, the total amount of these deals reached USD127m. The current shortage of high quality supply on the Russian industrial market stimulates not only investors, retailers can benefit from built-to-suit deals and minimize their risks of rental rate growth. We expect the investment interest in the warehouse sector to stay elevated in the coming future».

 

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 195 million square meters worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47 billion of assets under management.
In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg, Kiev and Almaty. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008, 2009, 2010, 2011 and 2012 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg.
For further information, please visit www.joneslanglasalle.ru