Morgan Stanley Has Confidence in Property in Russia

The global financial services company Morgan Stanley has had a significant investment banking presence in Russia since the early 1990’s and it’s clear that their commitment to the nation is built on foundations of fundamental confidence…but recent developments undertaken by the corporation have shown that in addition, Morgan Stanley has confidence in property in Russia too.

The company’s Real Estate arm in the form of its Special Situations Fund is buying up shares and stakes in significant property development companies across Russia - and to facilitate its purchasing power further, Morgan Stanley recently announced that it would add around USD 1 billion to the purchase and investment fund.  The fact that Morgan Stanley has confidence in property in Russia bodes incredibly positively for the entire Russian real estate industry and naturally raises the profile and the appeal of the nation among individual investors too.

The most recent acquisition by Morgan Stanley Real Estate has been a minority shareholding in RBI Holdings which is active in the St. Petersburg property marketplace.  The investment into the company has been welcomed by the firm’s CEO who stated that it would allow his company to continue expanding its market presence in St. Petersburg and beyond, and also allow RBI to expand into additional sectors other than just residential property in Russia.

Already RBI Holdings is on the hunt for significant parcels of land in cities across Russia where there is potential for mixed use developments incorporating residential stock together with commercial space and, seeing the potential of the company for expansion and profitability, Morgan Stanley decided to act and buy in.

Morgan Stanley’s financial commitment to the Russian real estate economy highlights the strength that exists in a marketplace where demand is high, affordability is relatively strong, inward investment is increasing and where increasing numbers of individual investors are tentatively approaching!

And if you’re not convinced by Morgan Stanley’s increased presence alone – what about the fact that the company of former CEO of American International Group Inc. is believed to have committed to multi million dollars worth of investment into residential, office and tourism related property stock in Moscow?

There is certainly no denying the level of significant activity taking place in Russia’s property market at the moment which makes it an exciting one to at least watch.

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