PPF to double investment in the Russian real estate sector in the next two years
PPF Group plans to more than double its overall invesment in the construction and operation of shopping malls, logistics parks and office centers in Russia by 2014, targeting a total investment of EUR 1.2 billion.
The Group has invested EUR 574 million into its real estate projects in Russia as at the end of 2012. It plans further investments of more than EUR 600 million in the next two years.
The Gross Leasable Area owned by PPF Real Estate Russia in 2012 stood at 368,000 m2, while it is now targeting 675,500 m2 by 2014 and almost 1 million m2 by 2016.
The Russian real estate sector is a priority area for PPF Real Estate Holding, the division that manages all real estate development and facility management within PPF Group. Russian projects are managed by PPF Real Estate Russia. PPF’s real estate land bank in Russia exceeds 5 million m2.
PPF Group operates two large shopping malls in Russia in the dynamic and developed regions of Astrakhan and Ryazan, while another sports, leisure and shopping centre is planned in the Mitino district of Moscow. PPF also has a 50% stake in the Trilogy logistics park and a 60% stake in the South Gate logistics park, both in the south-eastern outskirts of Moscow. The Group is currently building the first phase of a huge office centre called Comcity, in the area known as New Moscow, close to Vnukovo airport.
Tomas Lastovka, Development Director at PPF Real Estate Russia said: "We are a long-term investor in Russia‘s real estate sector, which is currently experiencing a revival, having remained committed to the region throughout the global financial crisis. An example of our long-term investment in the region is the Comcity project of a new generation of offices, which will open in four phases through 2020. As well as logistics and office development, we are also planning some residential projects in the outskirts of Moscow, near St.Petersburg and in the Volga regions. We concentrate solely on projects worth EUR 100 million and more.”