On achievements and losses in 2020
The main loss of the past year is time. Asset owners could not make money, cash flow fell, we can say that those who did not go into the negative were already lucky. It was important to stay afloat, not to lose tenants during quarantine restrictions. Among the achievements this year is the creation of a new company, R2 Asset Management. We had a year that was not at all typical for market participants: we assembled a team of professionals, made the first big deal. We are starting to collect a large package of street retail, increasing our competences and next year we hope to start several projects as part of transport hubs, coworking spaces, and gastronomic spaces.
About the activities of pre-R2 Asset Management
I was fortunate enough to work in a number of large development companies that manage closed-end mutual funds of real estate, in banks, operating and brokerage organizations. In each company, I received unique experience, whether it was creating a development company from scratch or attracting financing for a highly specialized project, saving equity holders and completing residential complexes. But most importantly, in all these places I acquired colleagues who have now become my partners.
Professionalism in real estate is very similar to the belt system in martial arts. Today my experience can be compared to the black belt, but black belts also have their dans. And the first dan is team management. The second is the ability to apply soft power to different team members. The third is given for me in such an allegory – to make the team work independently, productively and respect common interests. And I would focus more on strategy and promising startups.
A good time for a startup
There is no good or bad time – there is an ability to use any situation with maximum benefit. We have prepared the infrastructure for future acquisitions, agreed with market players about our readiness to implement projects and will try to make investments as quickly as possible. In an unstable market, there is also a need to build a street retail portfolio. We can do it and doing well. When the economic situation is evened out, it will be possible to work on the efficiency of the portfolio, to understand what to keep, what to sell, to fix the profit – here again our competencies will be required.
About the competitive environment in the segment
Competition is not a struggle, but the need to be smarter, quicker, more efficient. Since we work in several segments of real estate at once, there is no complete analogue to us; rather, there are strong players in each of the areas.
Asset managers include different names, offices and investment companies. Alfa Capital Management Company makes commercial real estate funds with X5 Retail Group, actively fights for retail clients.
Professional real estate investors include the Gremm Group and the Ginza Project with quality market projects. Realty4Sale is a serious player in street retail. We are discussing the possibility of some joint projects with many of the listed companies. Thus, not only the overall profits grow, but the real estate market as a whole.
About plans for the near future
We intend to grow 10 times in terms of assets under our management, to form a first-class real estate portfolio, a clear strategy and a stable success story. Ensure that the quality of assets in the portfolio is constantly growing.
I would like to take part in new breakthrough segments of real estate – coworking, coliving and other formats that will definitely replace the old in the economy of the future, in a digital society. It seems to me that a lot of interesting things will happen, and I would like not to follow the changes, but to be a pioneer.
Watch the video interview on the Nedvizhimost+ channel
