REAL ESTATE INVESTMENT
Our real estate strategy is driven by market dynamics and new investment opportunities in the Russian real estate market. Despite current economic troubles Russia remains a fundamentally attractive market:
- 6th world's economy (according to the World Bank estimations on GDP based on purchasing power parity);
- world's 9th most biggest country by population;
- 1st by retail trade turnover in Europe;
- retail, office and logistics stock per capita substantially below European counties/capitals levels.
Russian economy opens great opportunities to invest in Russian real estate sector due to current market re-pricing based on following fundamental reasons:
- Central Bank of Russia has substantially increased key rate (was 17% and now 11,5% from 10,5%) which inflated the cost of borrowing for local players thus reduced competition for core assets;
- Over last 6 months Russian Rouble devaluated by 25% against US Dollar/Euro which leads to corresponding temporary decrease in assets pricing making them fundamentally undervalued;
- There is a general understanding that next two years will be difficult for Russian economy which creates high probability of occurrence of distressed cases or other interesting investment opportunities.
From this backdrop, NDV Global takes advantage of its independent investment platform to deploy proprietary capital in opportunistic real estate development or redevelopment projects (residential, office and retail) in targeted urban markets with investments in the range of US$50M-US$350M. Our focus is also on infrastructure and mixed real estate in urban markets where our partners will be local Municipality and Regional Government – investments in the range of US$50M-US$100M.
The trend in securing controlled high quality real estate development projects will be the center-piece of our strategy, however, we shall endeavor to find quality, income-producing assets at a discount to replacement costs – this will tend to be retail/shopping malls, mixed-use and office premises (Class B+ to A) with minimum yields at 10%-15% with return of investments up to 8 years. These will be case-by-case investments in the range of US$10M-US$350M.
On the private equity side, we primarily invest in market-leading, later-stage companies that are often facing challenges due to a combination of rapid growth, strategic shift, market forces and increased competition. NDV Global carefully approaches to the selection of potential projects and follows strict investment criteria and seeks to target investments ranging in size from US$15M to US$50M.
Each company is different and each faces different challenges; our goal is to be an owner that helps provide the conditions necessary for the management team to thrive. We tend to employ many flexible forms of shareholding control - investing as a minority investor, a control investor, and sometimes as part of an investment consortium in which no one party has majority control and provide support including active roles as board members, working with management team to design strategies for growth, identifying and helping facilitate M&A’s, implementing long-term management incentive programmes, and helping to attract debt and equity financing at various stages of business development. More important for NDV Global are the company’s growth potential, the robustness of its business model, the strength of its management team, and the alignment of all partners’ interests.
On the venture capital side, we primarily invest in early-stage situations where we invest our capital in exceptional entrepreneurs with transformative ideas. We partner with passionate founders to disrupt markets through innovation and build successful companies. Our team has extensive experience collaborating with companies in Digital and Social Media, Mobile and Consumer Internet.
We specialize in leading Seed and Series A rounds in syndication with angels, venture capital firms and strategic investors. We are active investors and board members – operating as an extension of the entrepreneurs’ network. Our typical investments range from US$500K to US$5M with additional amounts reserved for follow-on investments.
We look to partner closely and cooperatively with management teams and entrepreneurs that have track records of success – we invest in people. We believe that the combination of our industry knowledge, investment experience, and operational expertise provides NDV Global with an edge in identifying and optimizing accretive value in investment opportunities. Our strategy is not only to work as partners with the management of our portfolio companies, but also to assist in the operations of our businesses and leverage all of our resources.