15.03.10 Interview with Mr. Nick Cotton, Managing Director, DTZ Ukraine

— What are your impressions from participation in Spring Business Forum 2009?
— The Spring 2009 conference offered a valuable exchange of ideas and issues through bringing together a broad range of bankers, developers and investors into property and infrastructure and their counterparts from both national and regional administrative bodies. A over-riding unknown variable at that time was the uncertain position of the Ukrainian and wider global economy and approaching Presidential elections in Ukraine.

— What is your estimation of Ukrainian real estate market condition in 2010?
— The Ukrainian economy has weathered the last 12 months relatively well and, we are now in a position to capitalize on greater medium term political certainty and direction. Already, DTZ are witnessing the return of appetite for the leading banks to start lending on development  as well as restructuring debt on existing collateralized assets. DTZ project that there will be seen increased development activity of hotel and retail property particularly in the regions whilst all sectors will see increased activity in Kyiv.

— When foreign investors will come back to Ukraine to begin investments in Ukrainian real estate market? Your forecasts?
— Activity for the next 12 months is likely to be relatively constrained to local developers commencing or recommencing the delivery of stalled projects through equity and local debt finance. Some of these projects will attract foreign investment through joint venture form agreements particularly where the foreign investor is a development partner able to bring experience into the more complex development schemes. Pure investors of completed income producing assets are unlikely to be materially seen in the market during 2010 and, thereafter are likely to be witnessed initially through highly speculative ‘vulture’ purchasers seeking stressed forced sales of typically secondary product.

— Do  you find sensible to organize  in Ukraine such events as “Spring Business Forum 2010” and why you agreed for participation this year?
— Ukraine is now in a position both economically and politically to start the process of sustainable future growth and development. These are early days but, it is critical at this juncture that well considered open debate is entered into so as ensure that future plans for development of the real estate market are well conceived and achievable, learning not only from the successes of central and western Europe but, also from the mistakes of the past.  DTZ have been established in Ukraine for 15 years and, with our global network are able to bring to the discussion our local and international experience.