Today, commercial real estate portfolio includes offices, shopping centers, and hotel real estate assets. We are now also actively entering the warehouse real estate segment. As a rule, these are always A or B class objects in good locations with the prospect of development and an increase in cash flow. Additionally, we are witnessing results above the market average.
One example is a deal in 2019, when we sold the Westside Village office park. The return on equity for the investor was more than 50% per annum. This happened due to the fact that we effectively structured the entrance to the deal, bought a building with a vacancy rate of about 20%, attracted the Bank of China and filled the office building with tenants. Two years later due to efficient management, we effectively sold it to Israeli investors.
We also have so-called club deals, where there are 3-4 investors. We structure relationships with investors, buy an object that generates stretched over time income, and then exit the trade wisely.
Mikhail Devyatov, Managing Director of Real Estate Department, UFG Wealth Management
