Completed projects, which generate income, may attract investments – experts

28 February 2013 | Thursday

URE Club

The number of classical investment deals on the Ukrainian real estate market in 2013 may increase, but mostly completed and qualified projects, which generate permanent income, will attract money. The issues of an investment market and attraction of the capital in the Ukrainian real estate market were studied at the investment round table in the course of CEO Networking Dinner 2013.

The moderators of the table were Mikhail Merkulov, the Head of LLC Erste Group Immorent Ukraine and the Regional Director of the Eastern European subsidiries of Erste Group Immorent and Roman Nasirov, Co-CEO, Head of EPG/DPG, Central and Eastern Europe at Renaissance Capital. The event was held on February 25th at the Premier Palace Hotel.

According to Mikhail Merkulov, the Head of LLC Erste Group Immorent Ukraine and the Regional Director of the Eastern European subsidiries of Erste Group Immorent, «the reasons of the fact that mainly completed projects will attract investments are simple. Investment funds avoid increasing the number of problematic objects, which were realized during the crisis, in their portfolios. Today the funds intend to decrease the risks working just with completed or almost completed objects. We should remember that investors are ready to overpay for the realized project compared to the price at the initial stages of the construction but they aren’t ready to pay the sum which was before the crisis».

Roman Nasirov, Co-CEO, Head of EPG/DPG, Central and Eastern Europe at Renaissance Capital believes that «investors are ready to enter the property market when there is a clear credit market in the country. The first thing in real estate is the credit leveraging which may be involved. Consequently, there will be conditions for capital inflow into the Ukrainian real estate market when there is a crediting either for developers or for ultimate consumers in the segment. As for residential property – it is mortgage. A lot of factors may influence it – from the internal situation in the country’s economy, to the increase of the Ukraine’s valuation by the international financial institutions».

Besides the investment topic, in the course of CEO Networking Dinner 2013 the experts discussed the issues of the residential, hospital, office and retail real estate, banking sector, property management as well as innovations in real estate.

The moderators of the round tables were: Aleksei Evchenko, ArtBuild Hotel Group, Anna Chubotina, Jones Lang LaSalle Ukraine, Vladimir Bandura, GFive Development, Vladimir Lulka, Supportio, Еvgeniy Kharlan, Oschadbank, Elena Shulyak, Midland Development Ukraine, Irina Pshennaya, Vertex Hotel Group, Maksim Chukhrai, Prominvestbank, Mikhail Merkulov, Erste Group Immorent Ukraine, Mikhail Petrishin, Ektornet Management Ukraine, Roman Nasirov, Renaissance Capital, Sergei Blazhevich, Media-Trade Ukraine, Sergei But, NAI Pickard, Sergei Sergienko, CBRE, Taras Shelemekh, Rustler Property Services and Yaroslava Chapko, Knight Frank.

Photo Report on the outcome event

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