Following the outbreak of the global financial crisis, Russia and Turkey became virtual no-go areas for many international investors as they shunned high risk and volatility and sought out stable core destinations. But following a number of recent deals involving the likes of Morgan Stanley in Russia and Blackstone in Turkey, both countries are on their way back to something approaching respectability in international investor circles.
Following the outbreak of the global financial crisis, Russia and Turkey became virtual no-go areas for many international investors as they shunned high risk and volatility and sought out stable core destinations. But following a number of recent deals involving the likes of Morgan Stanley in Russia and Blackstone in Turkey, both countries are on their way back to something approaching respectability in international investor circles.
Mega-deals had been on the radar for some time in Russia and this year got off to a promising start with Morgan Stanley Real Estate Investing (MSREI) confirming the acquisition of the €1 bn Metropolis shopping centre in Moscow in what it described as the largest-ever transaction in the Russian commercial real estate market. Meanwhile, the €774 mln White Square office deal that JLL and CBRE co-advised on in Moscow is believed to be one of the largest single-asset deals across the globe in 2012. In Turkey, Blackstone put the country firmly back on the map last year with the acquisition of Redevco’s retail portfolio. The real estate sectors in both Russia and Turkey may still be immature, but in terms of size and potential they rank among the most attractive markets in Europe. Not surprisingly, the leading international real estate advisers are jostling for a position in both countries. In April, Cushman & Wakefield made a move to challenge Jones Lang LaSalle’s strong presence in Turkey by appointing three new executives to its Turkish management board. The newly launched Turkish team includes Togrul Gönden and his brother Tugra Gönden, who both joined from JLL, as well as Haluk Sur as nonexecutive chairman. Including three new hires this year for retail, valuation & advisory and office & industrial, Cushman now has a total of 10 staff in the country. According to Carlo Sant’Albano, the company’s CEO for EMEA, the rebuilt team can now offer a full service to clients in office and retail agency together with capital markets and valuation and will continue to expand in response to client demand.
CBRE, which emerged as the top adviser in this year’s ranking, has also made moves to increase its profile in Turkey which consistently tops investor surveys for prospects and acquisitions and is also being targeted by many real estate investors. Last year, the world’s largest property adviser by revenue acquired its affiliate company in Turkey in response to increased demand from clients targeting new commercial real estate opportunities in the country. The Turkish unit is headed by Anthony Labadie alongside Feroze Bundhun as a consultant to CBRE in Turkey. Colliers International has seen its Turkey team shrink from 24 in 2007 to 16 in 2012, but the advisory firm aims to recruit new members this year. It is already active in the main segments - offices, retail, industrial and hotels in both sales and leasing as well as development consultancy - and aims to offer a new business line in 2013: property and facilities management services.
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