NAI Ukraine: NAI Global clients in Ukraine can now use asset management services according to world standards
Starting from September 2017, NAI Ukraine will be providing asset management services, as announced by the founder and CEO of NAI Ukraine, Vitaliy Boyko.
Today in the Ukrainian market, there is a significant amount of distressed real estate — properties that banks received as collateral for non-performing loans. These properties are often loss making because of the fixed maintenance costs. Moreover, managing such a portfolio requires expensive team of professionals that should be able to effectively solve related tasks. However, thanks to the contributions of expert asset managers, it is possible to determine which improvements are necessary to significantly improve the portfolio performance. For example, management company can determine necessary marketing activities, develop a new concept, and provide asset evaluation, legal assessment or technical re-equipment.
"Increasing operating and utility expenses for non-generating properties forces banks to reduce the properties’ price to break-even point. But in many cases, due to professional management, it is possible to increase properties’ profitability and create a more advantageous selling price", - said Dmytro Korniienko, head of the corporate real estate at NAI Ukraine.
Internationally, banks or funds are creating the real estate asset managing companies to increase or sustain the value of properties. Their tactical task is to provide a rental income and keep the capital and operating expenses at planned levels. At the same time, their strategic task is to forecast the risks and take the advantage of market opportunities. If a certain asset in a portfolio becomes obsolete within 3-5 years — it is necessary to reconstruct or sell the property. If the market expects growth, professionals will indicate new opportunities for investment. Thus, the distinguishing feature of asset management is strategic and financial management through superior transaction and management execution. These services are not only relevant to banks, but also to owners of any kind of assets.
"Today in Ukraine, there is a practice where the property’s owners manage it by themselves. However, experience shows that such an approach is not always efficient. Owners of large assets are forced to spend a significant amount of time and efforts to manage the property, which undoubtedly distracts from further development of their core business", - commented Vitaliy Boyko.
Dedication of asset management to a specialized company allows to maintain and optimize the real estate with less risks and costs. An example where this has been implemented successfully is with the shopping centre management of Lavina Mall. The owner entrusted all commercial issues to NAI Ukraine, including leasing retail areas, ensuring high returns, controlling lease payments, etc. As a result, over the last 6 months, 54 lease agreements were signed and 26,000 sq.m. shopping areas were leased, thanks to NAI Ukraine. Today, the best international brands are among Lavina Mall tenants — Lacoste, Superstep, Levi's, Terranova, Calliope, McDonald's, Sinsay, Mohito, Cropp Town, Reserved, House, SuperDry, New Yorker, Inditex and others.
The international experience of Dmytro Kornienko, the new NAI Ukraine head of corporate real estate department, and close cooperation with NAI Global, will allow NAI Ukraine to provide an asset management service in accordance with the highest international standards.
Access to the NAI Global network, which includes 7,000 professionals in 55 countries, grants unique opportunities for using the best international practices, while providing an opportunity to establish business contacts and offer Ukrainian assets internationally.
Numerous NAI Global clients are already represented in Ukraine, among them — General Electric, Alphabet, Microsoft, Citigroup, IBM, Jonson & Jonson, Procter & Gamble, PepsiCo, UPS, HP, Coca-Cola, Caterpillar, Oracle, Facebook, Philip Morris, Xerox, and others.
The corporate real estate department of NAI Ukraine is headed by Dmytro Kornienko, who has 15 years of experience in managing development and investment projects, as well as managing assets and commercial real estate in Ukraine and in the EU. Dmytro Kornienko is a member of the RICS (the Royal Institute of Chartered Surveyors), the world’s largest, most privileged organisation, that brings together appraisers and experts in real estate from 146 countries. Membership in the organization demonstrates surveyor’s chartered qualification and high level of professionalism.
About NAI Ukraine
NAI Ukraine represents NAI Global in Ukraine. The company has become a leader in commercial real estate consulting and leasing. NAI Ukraine is a consultant and leasing agent of the major Ukrainian commercial real estate projects – such as Lavina Mall, Rive Gauche, Ocean Mall, Blockbuster Mall and many others. NAI Ukraine team has a vast experience: 700 consulting projects, over 100 properties put into operation, and over 3 million sq.m. leased. To learn more, visit http://naiukraine.com/en