Budapest-based TriGranit will spend EUR 5.5 bn developing Russian real estate and is considering an initial public offering in Moscow. 'Russia is a difficult and complicated market, but it is developing fast and opportunities are enormous', the property developer said.
Budapest-based TriGranit will spend EUR 5.5 bn developing Russian real estate and is considering an initial public offering in Moscow. 'Russia is a difficult and complicated market, but it is developing fast and opportunities are enormous', the property developer said.
The commercial property sector in Russia and in Moscow in particular is currently the fastest growing in the world, with an estimated $3 to $3.5 bn being ploughed into this market segment in 2006. Real estate prices in Russia are in their fifth consecutive year of strong growth, and rose 70% last year.
Last week, Trigranit announced that it had teamed up with Gazprombank's real estate unit to enter the Russian market. The two companies set up a new joint venture to build shopping malls, offices, hotels and logistics centres in cities including Moscow and Saint Petersburg.
TriGranit, headed by Sandor Demjan, one of Hungary's most successful businessmen, plans to invest EUR 8 bn, including the deal for Russia, in 10 countries in the coming years.