Stanislav Bibik: we continue to see steady investor interest in Russian assets
Despite the expected decline in volumes, we continue to see steady investor interest in Russian assets.
Conclusion of transactions is currently hampered by problems with property analysis. Commercial real estate leasing has become almost completely rouble-denominated, except for some Grade A office buildings, and temporary discounts and setting the exchange rate in lease agreements have created an even greater gap between investors’ offers and property owners’ price expectations.
Accordingly, many investors are waiting for stabilisation of the situation, while continuing to actively review potential premises for acquisition.
At the same time, we are upbeat on the prospects for 2016 and predict that transaction values will stay at current levels.