Non-core investors will press the developers

07.12.2010 14:47
Articles about real estate | Non-core investors will press the developers This is not nothing wrong with the market plenty of cases of previously non-core group through the years has done its primary structure, real estate construction, reminiscent of experts

At the beginning of the crisis, many market participants forecast a massive real estate development companies in bankruptcy, the transition of their non-core assets to investors. That has not happened. Also with the market crisis have not disappeared, and non-core developers, many of which such diversification has helped to successfully survive the difficult times.

Related article: Fee-develompent: a new word to the suburban real estate market

The real estate market investors were the most unexpected ways. Perhaps, it is difficult to find industry, investors are not trying to implement their projects in development as a residential and commercial real estate. In addition to "syrevikov, went into construction investment, real estate, automotive and other companies, retailers and, of course, the banking sector. And before the crisis, it was justified: non-core investors to invest in various areas, yielding high returns. Before the crisis, there are many non-core businesses and a new word for the Russian real estate market - fee-development ("net developer" which offers services for creating and managing real estate) - sounded more and more.

In the construction market in Russia at the moment there are several categories of non-core developers. Some of these are banks and financial institutions that recently received a controlling stakes in real estate development companies or their assets and projects. These large banks such as VTB (Sistema-Hals, "Don-Story"), the Savings Bank ("Capital Group") have created their own developer division. In a crisis because of debts of developers becomes more and more of their assets, if any, control over companies. They sell the objects, bringing in realtors and developers, as well as several other banks.

"At the moment there is a block developers who owned various plots of land, but the real estate development was not their core business. Among this group are many private investors or investor groups, "- says CEO Miel-New" Maria Litinetskaya.

Gradually come to an adjacent building market companies that have previously engaged in networking and engineering. One such example is the company Thermoservice. Well as non-core developers have emerged from the owners of industrial zones, which were subsequently withdrawn from Moscow, or companies located here, were simply closed, the experts tell us.

Now, several companies from different business areas and begin their development projects, mainly in the Moscow region, since it is easier to get share in projects. In the future, it has great prospects in the region, said M. Litinetskaya.

Non-core investors VS developers

Everyone understands that the key challenge of investors in a crisis - to sell noncore assets. However, in current circumstances, the sale of assets is possible only with a substantial discount, the number of transactions in the market is insignificant. At the time of possession, non-core investors have to create specialized units to manage the developer obtained assets. Outsourcing companies hampered by the absence a wide range of specialized professional management companies that can provide services on a competitive basis, according to market players.

On the other hand, the crisis reduced competition and non-core businesses are now easier to enter the market, says M. Litinetskaya. According to the managing partner of Blackwood Konstantin Kovalyov, in the absence of bank financing of non-core investors have a certain competitive advantage to professional developers, as they have substantive business can generate cash flows that can diversify in real estate.

As a result of the crisis, the earth was not the most liquid commodity owners to acquire land for subsequent resale are forced to proceed to development sites on their own. Significant reduction in the crisis the value of land - "input" on the real estate market, stimulates the emergence of new players, says managing director of the Alur, Mikhail Urinson.

In a crisis, professional developers can not finance projects under Land denvelopment: preparation of project documentation, land alignment, connect to networks and the creation of necessary infrastructure. The reason is simple: banks are not willing to lend to developers at these stages of the project, and equity of companies in crisis are severely limited.

The main impetus to market non-core real estate players is their desire to diversify its business, the players believe the real estate market. The catalyst for the arrival of new players in real estate development is a fairly high yield real estate development business while reducing risk.

The real estate market in Moscow was expecting the arrival of major "non-core" developers are still in the so-called mast years. After the crisis, market expectations were justified. Gradually began to appear new members, which, if not supplanted the old players, then certainly behaved more actively.

Largest developer of new generation in Moscow is now the largest in Russia, a vertically integrated agro-holding "Nastya", which builds large-scale neighborhood in front of Tsaritsyn Park (632,800 square meters. M). Building is on the territory of the Moscow plant bakeries (HIC). However paradoxical, but the pace of construction of non-core developer today among the highest in Moscow.

Production capacity of the IBC will be transferred to the territory of the flour mill in Sokolniki. According to the principal shareholder and Chairman of the Board of Directors of SC Nastusha Igor Pinkevich, it was held business diversification enables the company to operate successfully today and restructure debt.

"Non-core developers, at least, those who loudly declared itself on the market, not so much. The most famous today - GC "Nastya" with MCR under construction. "Tsarina" and "Prima-Fur" with the draft LCD "Grape", as well as LCD "garden neighborhoods" where there was a consolidation of non-core developers ", - says head of Research and Consulting Company NDV-estate" Olga Novikova.

"The decision of non-core" Nastya "to enter the housing market through the development of their lands due to an effective approach to the use of its assets", - said M. Urinson. Such large-scale projects the company said "Start Development Company, preparing to building projects in the residential real estate in major land allotments, the expert adds.

As he says "non-core developer, is now a strategic advantage for new players. According to I. Pinkevich, "companies such as ours are not burdened by the old partnership, the old obligations are more flexible in tactics, unconventional approach to building the product." In the near future on the real estate market of the capital will be released a few more "non-core" real estate developers, which today no one knows, he predicted.

"The goal of any business diversification is not only increasing its profitability, but also to stability of financial flows. Financial stability - a solid foundation for any business. I do not divide their business on the main and auxiliary. Just build the estate "Tsarina's" I'm planning a specific number of months, and produce grain, flour and bread - the rest of his life, "- shares the experience of non-core project I. Pinkevich.

The company is planning the construction of core assets. We are talking about a single manufacturing facility consisting of a grain elevator, mill and bakery, the working title of the project - "Transformers."

According to market players, the problems all the same developers - a complex bureaucracy, spanning a time for reconciliation and release of documents. And, of course, finding a good realtor who can realize the sale of large amounts of time.

As experts believe the real estate market, there is nothing wrong in that market there are new non-core members. Development market in Russia has begun to emerge in the 1990-ies. and includes many examples of previously non-core company enters the market, then the basic structure of the group became the construction of real estate. The examples are not far to seek: the company Inteko previously engaged in manufacturing of plastic products. Also Tashir through an extensive holding structure feels much better than others and during the crisis was able to acquire and launch a major new projects.

According to experts, wrong to call such companies non-core developers - it's non-core investors, and developers are just professional. At least, the crisis will put the record straight "and" unprofessional and players will have to leave the market.

If non-core investor enters the market with large volumes of housing construction, it creates a real competitive professional players, thereby taking their niche. All of the above does not apply to point and random projects, analysts said.

Who will rule the ball?

During the crisis, non-core assets are multiple parallel stages of development in the transition from the owner - manager of the investor. "The first phase began in late 2008 and lasted until the end of 2009, investors have largely restructured assets in the most hopeless situations, seized them by negotiations and / or through the courts. The second phase started in 2010 and continues to this day - investors are managing assets.

And today, the prevailing strategy - selling objects. In parallel, investors have begun to seize the assets restructured in the first stage, but fell short of expectations "- says M. Urinson. He predicts that in the near future removal of these assets will continue.

"Now investors need to focus on effective management of seized property, matching the title and initial permits systematic development of land," - says the expert.

Effective profile developers in particular medium, promptly solve various problems and developing intensively. "I think we will see the expansion of the players at the expense of medium-sized companies that will acquire land for an objective price. In the current environment, projects in the residential real estate remains the most liquid and marketable. In this segment, and most likely will have new, big players "- predicts M. Urinson.

"The redistribution of assets has not yet ended developers and banks are re-registering the assets to other entities. Often the result of the crisis they can not sell these or other projects and still hold their reconception. In the near future the market will come a number of non-core real estate developers with large projects up to 1 million square feet. meters of housing ", - predicts M. Litinetskaya.

However, the most notable non-core developers, according to the head of Research and Consulting Company NDV-estate "Olga Novikova, the real estate market will undoubtedly be the banks that were active in the pre-crisis years, with such liens as land assets.

Perhaps in future there will be a mega-projects, which will be implemented with the participation of state corporations. This is evidenced by the creation of the Savings Bank's own development structure and the active recruitment of new staff in this unit. Go under the control of the Savings Bank project Rublevo Arkhangelskoye also spoke about the possibility of a major project with the participation of state corporations. Moreover, most major projects of non-core investors will be in the residential segment, experts said.

For example, a corporation creates a separate development company "Savings Bank of Development". It will be made to belong to the bank bags in depeloperskih companies and assets in real estate. Incidentally, one of the recent acquisitions of the Savings Bank in the field of development - a majority of DB Development (DBD), which was established by Deutsche Bank and Strabag to work together on the Russian real estate market.

"Banks and other financial institutions, large holdings and corporations can attract large investments, and later prepared to sell building plots, as crisis lands lost their liquidity and sell them nearly impossible. If banks move from Land-Development for the construction of real estate it will be their strategic error "- sums K. Kovalev.
Content tags: Development
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