SPRING provides long exposure to the Russian real estate through our  SPECIALISED PROPERTY ASSETS IN RUSSIA LIMITED (SPAR). The fund was launched in January 2015. It invests in residential property at the late construction stage, completes fit-out and then re-sells. Investments are in Russia, with a focus on Moscow and the Moscow region.

Market drivers
  • Low level of housing stock per capita, characteristic for Russian residential market. Despite substantial new additions it remains one of the lowest in Europe.
  • Soviet era housing stock in need of replacement: over 35% of Russia’s housing stock was built before 1970.
  • Overloaded small soviet apartments
  • Renting is not natural for the Russian mentality. People prefer to own apartment they live in.
Investment concept
  • invest in residential real estate at the late construction stage;
  • complete fit-out, furnishing and subsequent re-sale;
  • focus on Moscow and the Moscow region, area that is always in demand with potential residents – easy to re-sell;
  • focus on small apartments (1-bedroom and studios) as most liquid residential properties;
  • the value of property increases significantly after fit-out: because buyers may move in immediately, and because the price of fit-out can be included in the mortgage.
  • complete cycle: 6 – 12 months.
  • target return 25%+