Page 98 - RusRPTMay19

break even expected in 10 years. VVSS is controlled by Thalita Trading Limited, which is 25%-owned by VTB Capital, investment arm of Russia's second-largest bank VTB. Another 24.99% are owned by the Qatar Investment Authority, another 25% by Russian Fund for Direct Investment and a pull of foreign investors.
9.1.4 Construction & Real estate sector news
For the first quarter of 2019, investors invested $967mn in Russian real estate, which is 30% more compared to the figure for the same period last year ($742mn) and is the maximum in the last three years. Such data are presented in a study by JLL. Despite a significant increase in investment at the beginning of the year, experts are skeptical about the effect of investors in the Russian real estate market. High investment growth is primarily due to the closure of several large deals last year, notes Natalia Tischendorf, head of financial markets and investment at JLL. In general, according to her, investors hold a waiting position. In addition, today there is a shortage of assets available to investors for purchase, which does not contribute to the growth in the number of transactions.
Prices for luxury apartments in Moscow hit a three-year high. The average price per square meter in the proposals on the primary market for expensive (luxury and premium) apartments in Moscow in the first quarter of 2019 amounted to RUB815,000, or 12% more than a year ago, the report of consulting company Knight Frank says. But if in the premium segment the price per square meter for the year increased slightly - by 8% - and reached RUB597,000 and in the last quarter a decrease in prices by 0.4% was recorded, Knight Frank writes, then luxury housing for the year went up by 22% to RUB1.06mn per square meter and this is the highest figure in the last three years.
The office real estate sector became the leader in terms of attracted investments - its share reached 38% of the total amount of invested funds. This was provided by the sale of office space of classes B and C by the chairman of the board of directors of the Absolute IG, Alexander Svetakov.
In second place - the residential real estate sector in the format of land for the construction of housing and apartments under construction for investment purposes. Its share was 27%.
The largest transaction in this segment was the purchase of a residential project "Prime Park" by A1, the investment division of Alfa Group. Three leaders closes the retail real estate sector (22%). A significant part of investments in this segment was provided by the purchase by the PPF Real Estate Russia fund of the Nevsky Center shopping centre in St. Petersburg. According to the results of the first quarter, all investment transactions with real estate took place in Moscow (77% of investments) and St. Petersburg (23% of investments). In other regions (outside of Moscow and St. Petersburg) not a single public transaction was closed. According to the company's experts, in 2019 investors will invest $3.5bn in Russian real estate.
9.1.6 Agriculture sector news
The Russian meat union has proposed banning individuals from
98 RUSSIA Country Report May 2019 www.intellinews.com