Public-private partnerships could be one way to generate interest in Moscow real estate among foreign investors, who despite phenomenal cap rates of 9 to 12 percent, “have so far been very cautious” about sinking money into projects there — particularly outside of the downtown “Three Ring Road” area.
Aleksandr Nikolaev, Valartis Group’s managing director for Russia, says three factors worry investors about investing in “new territories” outside the core downtown area: “obscure rules of the game caused by the lack of a clear development concept for New Moscow, the absence of developed infrastructure, and the complexity of hookup to utilities grids.” Source: indrus.in
