RWM Capital Asset Management together with the company NAI Becar closed yet another transaction for acquisition of residential real estate in Leningrad region. The apartment pool of the residential facility “Vernissage” was purchased at the expense of the closed real estate investment trust fund under management of RWM Capital Asset Management.
“Vernissage” is located in Vsevolozhskiy district of Leningrad region. The facility includes apartments from 21 to 69 sq. m.
“At the beginning of the year the assets of the closed real estate investment trust fund “RWM Zhilaya Nedvizhimost” included apartments of Residential Complex “Petergofskiy Kaskad”, - says Sergey Orlov, CEO of RWM Capital. - Taking into consideration positive experience of investments into residential real estate at the later stage of the project we and our partner NАI Becar continued our research of new opportunities at the real estate market of St. Petersburg and Leningrad region. We were interested in the project of “Vernissage” in which we purchased 57 apartments. All apartments will be added to the assets of the same closed real estate investment trust fund “RWM Zhilaya Nedvizhimost”. The total floor area of the apartments is more than 1300 m2. The amount of the deal is 100 million 300 thousand Rubles. High activity of both real estate developers and purchasers is registered at the real estate market of St. Petersburg. The market is at the stage of rapid development which presents investors with the opportunity to make interesting financial investments. We are planning to continue our work in this direction. At present we are conducting due diligence of several real estate objects for investment of our funds”.
“Residential property as well as office, storage and retail real estate is of interest to us, - says Felix Blinov, Managing Director of RWM Capital Asset Management”. - However, the latter do not provide such proceeds as the residential real estate may offer. We focus on economy-class apartments, the stream line of residential real estate sector. The economy-class property constitutes the principal load of transactions.
Real estate developers are actively developing the suburbs of St. Petersburg. Mass construction of residential real estate is taking place there at the moment. This is an obvious trend which will grow more and is supported by the demand on the part of buyers who prefer apartments in new-built housing. A modern average buyer of an apartment is interested in the optimal combination of such factors as the price, transport accessibility, infrastructure and comfort. We can always find our buyer if we invest our money in well-priced and conveniently located residential property of proper quality”.
NAI Becar acting as an exclusive seller has disposed of more than half of apartments in “Petergofskiy Kaskad” purchased by RWM Capital Asset Management in the framework of our deal at the beginning of 2014. Apartment of “RWM Capital” in “Vernissage” will also be sold by NAI Becar on the basis of the exclusive contract.
In the framework of cooperation with RWM Capital NAI Becar acts not only as a consultant but also as a full-fledged financial partner of the mutual investment fund. “Specialists of NAI Becar prepared several offers for investments in the new homes market of St. Petersburg in compliance with the criteria set by “RWM Capital” as regards profitability and reliability. We also act as a co-investor of the transaction, - comments Ilya Andreev, Vice-President of NAI Becar. - NAI Becar purchased stakes in the fund and pledged them against the guarantee of profitability. In future we will sell the purchased apartments ourselves. The proceeds of NAI Becar shall be secured not by the agent's commission but by increase of the profitability of the fund - 18%. Such financial security and absence of risks allow institutional investors to enter the market of real estate under construction”.
