‘A developer’s success depends on a whole range of factors, including the performance of the broker, the management company, and the investment system,’ Boris Terentiev of Olips announced at a press conference devoted to investments in, building of, and running office realty.

Mr. Terentiev believes companies are often on a limited budget when they are designing and implementing construction projects. In such cases companies that only use the finances of the proprietors and the founders do not make the best decisions because they actually ignore the opportunities a developed market has to offer.

‘One way to find the money that is quite new for provinces but nevertheless attractive is to borrow from the open market. The beauty of this method is that you create some positive publicity in terms of your borrowing record (which means it will be generally cheaper to borrow money), diversify your sources, go for goodwill capitalization and win international recognition. There are, however, some minuses such as more transaction costs, more complicated management routines and having to declare your company’s strategy. Experience worldwide has shown, though, that the pros outweigh the cons considerably,’ he said.

‘This is why Olips is heading for the stock market. We want to show our transparency and provide ourselves with some nicely balanced financial sources. A lot of investors, including some large federal companies, have shown a great deal of interest in our plans and projects. Besides, we are willing to share our experience of investments management with both Russian and international institutional investors who have been considering reaching the regions. I am convinced that the more regional players work on transparency, the more civilized the local market will be,’ Mr. Terentiev observed.