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As experts say, there wasn’t any progress on the investment real estate market in 2012. Both foreign and local investors continued to study the opportunities on the market and some of them were willing to consider the purchase of «troubled» assets that cost much lower than market value.
The situation on the investment market, different estimates of the project by the buyer and the seller, the ranking of development projects on the scale of investment attractiveness, as well as factor which constrains the foreign capital entrance the Ukrainian property market will be the main themes of the investment round table during CEO Networking Dinner 2013. The event will be held on February 25 at the Premier Palace Hotel.
As Jones Lang LaSalle Ukraine analysts mention, 2012 finished with a minimal amount of investment transactions in the local real estate market. Closing of the selling transaction of mix-use «Sky Towers» distressed assets in Kiev was announced. Also, the Russian company TPS Property acquired super regional shopping centre Ocean Plaza, estimated to be $ 300 million deal. According to the experts, this is the only classical investment transaction on the market. It’s worth noting that the amount of the transaction is 65% higher than the volume of investments in 2011. The volume of investments in commercial real estate in Kiev was just over $ 500 million last year.
Making the forecast for 2013, analysts of Jones Lang LaSalle Ukraine suppose that the market may complete a number of major transactions. Investors will focus on the most high-quality assets, and retail real estate (followed by office and hotel objects) will remain the most attractive segment.
Popularity of retail segment is due to the possibility to forecast revenue by signing a preliminary lease agreement with retailers at the stage of object construction and fixing of its future profitability. In addition, retail offers more quality assets than other market segments. The main question for the investor is the shopping centre occupancy in the context of the new tenants willing to enter the Ukrainian market, as well as the expansion of existing ones.
As for the prospects of the investment market in Ukraine in the near future, the experts do not predict some recovery in 2013. Jones Lang LaSalle Ukraine believes that economic and political situation remain volatile and it reduces the accuracy of any forecast and determines the minimum number of the entry of new companies into the market, in terms of both investors and tenants. However, in terms of number of transactions and not the general trends on the market, there will be a number of large transactions (negotiations for which have been maintained for a long time) in 2013. It’s worth noting that despite the possible increase in the number of classic investment transactions, we cannot speak about the restoration of the investment market.
Discussion of trends in the investment market will be held at the round table during CEO Networking Dinner 2013, which will be on Monday, February 25, at the Premier Palace Hotel. In addition to the investment themes, the event will be organized a round table on the retail, office, hotel, real estate, banking, legal, and management tables, as well as on the topic of innovations in the Ukrainian real estate.
For participation in CEO Networking Dinner 2013, please contact the project coordinator Anna Nestulia URE Club:
+38 (066) 854-00-40
+38 (044) 227-67-53
