RWM Capital’s assets under management reached RUB 40bn - RWM Capital
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RWM Capital’s assets under management reached RUB 40bn

16.08.2019

RWM Capital’s funds under management reached RUB 40bn. As of 01 August 2019, the Company’s portfolio comprises 18 REITs.

“Among all the collective investment vehicles presented on the market, REITs are the most flexible,” said Feliks Blinov, CEO of the RWM Capital Investment Group. “RWM Capital has been actively promoting REITs in the Russian investment market for over 10 years. And we are more than pleased that individual private investors, with an opportunity of investing across a wide range of asset classes and investment schemes, have recently preferred REITs to anything else. Several months ago, as a chairman of the Investment Committee in the RGMD, I was honoured to host the Private Investment vs Real Estate Market Conference in Moscow. The topic of REITs came up quite often. It was obvious that private investors and property developers alike found REITs quite appealing.”

The changed legislation, which brought escrow bank accounts and project financing into the Russian property development market reality, forced property developers to look for alternative financing tools. Since they realized that REIT financing of real estate development projects was a real thing, REITs gained even more in popularity.

“The time of participation in shared construction agreements has passed,” said Aleksei Volodarskii, CFO of the RWM Investment Group. “However you may stay assured private investment will find its way into the property market. We collaborate with real estate developers on regular basis, and we know that they do like REITs. It is not surprising at all, because REITs, both diversified and specialty, may hold different types of properties in their portfolios. In other words, you can put literally anything from the world of real estate into a REIT”, he added.

It seems that REITs may become the way-in for private investors into the property market they search for. The national collective investment pool is roughly estimated by the Central Bank of the Russian Federation at RUB 3,5tn. With RUB 3,1tn kept in and managed by REITs, it sounds as if private investors consider this investment vehicle quite safe for them to use. So the final question is whether private investors will be offered assets they are interested in or not.

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