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Opalesque Exclusive: UFG Asset Management launches Russia Real Estate Fund Investment Strategy

• Huge and growing appetite for Russian real estate by foreign institutional investors is not matched by the product available, most of which does not comply with international standards.
• The Fund’s main aim is to develop properties of international quality with clean tax and ownership structures, to further rent them out or sell off to institutional investors.
• Supported by UFG’s vast connections in Russian business and government circles the Fund is able to source attractively priced prime land plots. The Fund will team up with top-tier Russian and international companies to develop these plots.
• The Fund will be managed by Holger Müller and Mikhail Tarasov, who will be supported in their efforts by Boris Fedorov and Florian Fenner as well as the UFG private equity investment team.

Investment Opportunity

• Yields for Class A offices in the centre of Moscow have fallen to 8% and are likely to decrease further while availability of leverage is still limited.
• Regional yields are still double digits but are expected to follow Moscow example as international investors are setting off to the Urals and beyond.
• As yields for completed properties are falling, already high development yields are poised to increase further. To succeed in development you need:
  • ability to source land plots......................

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