The EUROHYPO bank, one of the largest players on the real estate financing market, has opened a representative office in Moscow. According to EUROHYPO CEO Bernd Knobloch, the Russian rep office will be exclusively focused on financing commercial real estate, particularly, office, shopping, recreational and logistic centres, industrial buildings and hotels. The bank plans to increase its transaction portfolio to E1.0 billion in the coming 12 months. The threshold of the deal is set at E50 million, while the average transaction is put at E70—120m. Bank representative says the cost of financing will not exceed 10%, with financing to go towards projects in Moscow and other major industrial cities such as Yekaterinburg and Novosibirsk and resort centres (Krasnodar and Sochi). Enjoying the appearance of a new foreign player, Russian real estate market participants hope to get cheaper financing. Russian banks provide credits for five years maximum without any amortization period to finance commercial real estate projects, while EUROHYPO offers seven to ten years in credit terms and a 15-20-year amortization period.
Source: WWW.KOMMERSANT.RU, June 30, 2006
