Shopping Centers Russia Февраль 2023 | Page 69

expert opinion

Svetlana Yarova, Director of Commercial Real Estate Brokerage Department of RRG:

«Avito» can be used to place an asset in order to make the offer public. It is necessary, for instance, for its valuing or valuing another asset, since the assessor can only refer to public offers.

It frequently happens that at the time of the sale announcement, the owner has not yet made the final decision on whether he is ready to part with his asset. First of all, he wants to evaluate the interest and demand of the market, or even attract the attention of the press.

Sometimes in aggregators there are offers with an undervaluation, inaccurate information or offers are put up without the owner’s knowledge. Such actions are one of the companies’ tricks that the real owner, who cannot be found, will pay attention to the ad, call and their contact will be received by the company.

There are several strategies for such sales. The first is to lock in a profit or loss and go into cash, which is necessary for reinvestment or fulfillment of obligations for other businesses, for example, recapitalization of the company. It may be reinvestment including to other markets.

For a number of companies that left the Russian market, it is either a logical step out of the investment in order to fix its profitability and pay dividends or a forced exit.

Also, financial entities that have received assets, for example, for debts, sell shopping centres to pay debts off and dispose of non-core assets.

For a buyer, there are also a number of opportunities: to obtain direct income from the rental or receive future income by improving the quality of the product and increasing its capitalization, including sale at a later date.

The above is the basic theory. In practice, there can be much more goals. For example, diversifying the portfolio holding or investment structure, fixing the earned income in a clear stable asset, creating a source of relatively passive income (if it is a small managed asset). We also know of cases where shopping malls were bought as a sort of insurance for the family in case the head of the business died.

It happens that a company needs a large asset, for which you can take a loan or a subsidy for the development of another business. Someone just buys a dream. Yes, there are such people.

Today the model of purchase by developers of housing areas and the construction of various facilities, including shopping centres in those areas where the city gives good conditions and discounts when converting land for housing in return for fulfilling obligations. After all, shopping centres are important infrastructure, jobs and payouts to the municipality.