RWM Capital at the International Real Estate Investment Forum in Moscow
19-20 September the International Real Estate Investment Forum was hosted in Moscow. The event is hosted annually for property market players to get all in one place and discuss burning questions of the national property market.
Private investors: how to make money on Real Estate today?
The panel session was conducted to discuss what tools property investors are currently having at hand and what kind of property they could and should invest in using them. Being among the session speakers, Gavriil Korolev, Head of the RWM Real Estate Department, gave his report about the most profitable investment opportunities. Making use of such property investment evaluating criteria as a capitalization rate, liquidity, possible profitability, etc, he named the leaders: deposits, commercial and residential property, REIts.
Money for development projects: alternative mechanisms and affordable solutions
REIts and their key advantages over other investment strategies became the main point of the speech given by Aleksei Volodarskii, CFO of the RWM Investment Group.
“REITs are becoming a really attractive option for investors and developers alike nowadays. REIts mean co-investing, and co-investing means a huge discount from property developers,” he said. “It is impossible for a REIT to exist if it is not run by a licensed asset management company. Besides, any REIT is closely and carefully supervised. From the property developer’s point of view, REITs are attractive, too. It is so mainly because REITs are not subject to the income tax. And this leaves property developers with more money for further investment.”
Office property: visible balance
REITs have been a long-time companion for the RWM Asset Management Company (part of the RWM Capital Investment Group). Evgenii Shmurnov, the Company’s Head of the Project Administration and Management Department, related a commercial property investment success story lived through by the RWM team. Astonishing as it might seem, the story was about a piece of unfinished commercial property in the centre of Moscow, bare walls with a roomful of essential equipment (barely functional, if at all). Boasting of its only plus point – its central location, the property underwent a complete transformation under the Company’s management. At present, Domnikov is class A+ Business Centre with an occupancy rate of over 99 %.
