Konstantin Boytsov has talked about the legal structures that can be used when acquiring real estate

On 27 February, Maxima Legal together with Colliers International and with the support of Russoft organised a business breakfast titled “Time to buy: when buying an office is cheaper than renting”.

As part of the event, the Head of the Real Estate and Construction department at Maxima Legal, Konstantin Boytsov talked about the more commonly used schemes for purchasing real estate, in particular, acquiring an interest in a legal entity or existing properties or build-to-suit properties including through the use of investor contracts. “Choosing the optimal format to structure the relationship between a buyer and seller depends on a number of factors – including the condition of the property, the time-frame for registering ownership, the desire or abilities of the parties to take part in the project. In any case, provided there is careful study of the transaction, the ownership of real estate, compared to renting, may have virtually no risk”, suggested Konstantin.

It was noted that the past two years the commercial real estate market in St Petersburg has seen a decreased number of transactions due to a lack of quality premises. Those entering the market for business centres are finding that properties are reaching full occupancy before construction has been completed and that large state corporations continued to dominate the market for restructured or renovated properties. In such circumstances the alternative choice for many companies is to purchase or commission the construction of an office themselves.