Commercial Property News - November 2008 - (Page 25)

INDUSTRY PULSE INTERNATIONAL The Russian Dilemma Turmoil Grips Tough but Promising Market By Paul Rosta or more reasons than one, the Federation Tower complex in Downtown Moscow will be a tough act to follow. The taller of the complex’s two buildings—its 93-story, 1,660-foot-tall western tower—will rank as Europe’s tallest building upon the project’s expected completion next year. But it will be a while before MIRAX GROUP Corp., the project’s Moscow-based developer, breaks ground on additional projects there or elsewhere. The firm is putting new development on hold through at least 2009, temporarily shutting down a 50-project pipeline that is concentrated primarily in Russia.The firm’s chief executive, Sergei Polonsky, disclosed the hiatus in the middle of September, placing the blame on the global credit squeeze. These days, MIRAX and other leaders in Russia’s burgeoning com- F mercial real estate industry are feeling a double whammy. Russia’s drive to win a bigger piece of the global investment pie would have stalled anyway because of the financial crisis, but the country’s military skirmish with Georgia over the summer scared off many already skittish investors. Russia will be hard-pressed to increase immediately the 49 percent of investment capital that Real Capital Analytics Inc. reported that foreign investors provided between the beginning of 2007 and the middle of 2008. The financial crisis is also reducing expectations for Russia’s 2009 economic prospects. In late September, the International Monetary Fund cut its 2009 forecast for the growth of Russia’s gross domestic product from 7.3 percent to a range of 6 to 6.5 percent. One positive sign is that the government appears willing to Balance of Power (January 2007 to June 2008 investment in Russia) $4.00 $3.50 $3.00 $2.50 Billions $2.00 $1.50 $1.00 $0.50 $0.00 Office Deve lopm Retail ent S ite Hote l Indus trial Apart ment Domestic Crossborder Based on independent reports of properties and portfolios $10 million and greater. Data is believed to be accurate but is not guaranteed. Source: Real Capital Analytics Inc. pour profits from state-owned oil and gas reserves into shoring up the economy. In an October analysis, Standard & Poor’s cited such govern- Presented by Nov. 14th, 2008 LUNCHEON KEYNOTE SPEAKER Westin New York at Times Square Join CPN in Honoring Commercial Real Estate’s Best CPN ’s 2008 Executive of the Year Awards Luncheon in New York City recognizes those commercial real estate executives who in the past year have made strategic decisions, closed deals or otherwise demonstrated through outstanding initiatives their innovation, insight and leadership. These leaders reflect the future of our industry. CPN ’s Executive Awards Luncheon honoring these top leaders is one of the industry’s most important events. Don’t miss it: Reserve your table and tickets today. EXECUTIVE OF THE YEAR AWARDS LUNCHEON TICKET: $135 EXECUTIVE OF THE YEAR AWARDS LUNCHEON DISCOUNTED RATE FOR NY INVESTMENT ATTENDEES: $120 AWARDS LUNCHEON TABLE (SEATS EIGHT): $1000 JOHN ZOGBY, president & CEO of Zogby International, remains by all accounts the hottest pollster in the United States today. To Reserve Your Ticket / Table: Online: www.CPNonline.com/conferences >> Click on Executive Awards Luncheon E-mail: lisa.kastner@nielsen.com • Phone: 646-654-7268 For Sponsorship Opportunities, call Diane Homer: 201-943-4132 I N VA L UA B L E K N O W L E D G E , I N S I G H T, A C C E S S A N D N E T W O R K I N G. www.cpnonline.com • November 2008 • COMMERCIAL PROPERTY NEWS 25 http://www.CPNonline.com/conferences http://www.CPNonline.com/conferences http://www.cpnonline.com

Table of Contents for the Digital Edition of Commercial Property News - November 2008

CPN - November 2008
Contents
Starting Line
Buzzyworthy
Seniors Housing
Data/Analysis
Conferences
Through the Fog
CPN’s Top Cities for Investment & Corporate Relocation
Finance
International
Sustainability
CPN-Nielsen Claritas Special Report

Commercial Property News - November 2008