Sberbank Investments LLC (a 100% subsidiary of Sberbank) and Investment Group RWM Capital have signed a cooperation agreement, under which the parties have agreed to potentially carry out joint investment projects involving Russian commercial real estate. According to the agreement, the companies will together select and invest in properties in different commercial real estate segments, including offices, retail venues and warehousing.
Joint projects may be carried out via a new closed-end mutual investment fund. Sberbank Investments is also considering the possibility of direct investment in specific projects. If joint projects are successfully executed, Sberbank Investments’ share will not exceed 50% of the size of investment needed for each separate project.
James Corrigan, Managing Director of Sberbank CIB’s Merchant Banking and Advisory Department, commented:
“We are confident that cooperation between these two companies with extensive investment project experience will facilitate the development of Russia’s promising commercial real estate sector through alternative financing instruments and a closed-end mutual investment fund.”
Feliks Blinov, CEO of the RWM Capital Investment Group, said:
“The commercial real estate market has never been so popular among and appealing to investors. The predicted fall in the size of the deposit portfolio will further contribute to the development of this area of investment. I am certain that in partnership with Sberbank we will implement exciting new projects in this segment. We possess all the necessary resources and capabilities to do this.”
Sberbank is Russia’s largest bank and a leading global financial institution. Sberbank holds almost one third of aggregate Russian banking sector assets, it is the key lender to the national economy and the biggest deposit taker in Russia. The Central Bank of the Russian Federation is the founder and principal shareholder of Sberbank owning 50% of the Bank's authorized capital plus one voting share, with the remaining 50% held by domestic and international investors. Sberbank has more than 145 million customers in 20 countries. Sberbank has the largest distribution network in Russia with almost 15,000 branches, and its international operations include UK, US, CIS, Central and Eastern Europe, India, China, Turkey and other countries.
Sberbank CIB is the corporate and investment banking business of Sberbank. Its key areas of activity are corporate finance (including trade finance), the documentary business2, investment banking services, trade operations with securities, and private equity. Sberbank’s corporate and investment banking business provides integrated financial solutions and investment advisory services to its clients, which include major corporations, financial institutions, sovereign states and federal and sub-federal government bodies and organisations.