Kirill Pisarev: “Moscow developers are far behind London”

9 April 2018
Kirill Pisarev: “Moscow developers are far behind London”
After termination of controlling PIK Group 10 years ago, Kirill Pisarev decided to try himself in worldwide luxury real estate market. At the same time he started to work on several projects in Moscow. This allowed businessman return to the Russian property market by participating new projects as a fee-developer.

Mr. Pisarev tells «Ъ» how he manages his business and the reasons why his own property services company “The Collection” has not been introduced in Moscow yet.

- This March Michael Belton, your partner, declared that it had been 2 years that the company you founded after your leaving (from) PIK Group, Storm Properties, should not be associated with your names. What happened?

- Indeed, it was rebranding. For a long time we simultaneously have been working in two markets under two brands: Russian - Storm Properties and foreign – Wainbridge. Later we decided to merge two brands in one and keep only Wainbridge for both markets. Storm Properties brand was given to partners from another company.

- Who are they?

- Just another company, there is nothing interesting about it.

- Why did you decide to consolidate all assets with one brand?

Our aim is to develop our company globally. In fact, real estate market is based on local criteria and very often the development of companies is limited by their location. Though working in international real estate market has its own difficulties, it also implies certain benefits. For example, the implementation of a well-known type of expertise in one market is a now-how in another one. By managing international teams we make an interchange of benefits.

- How does Wainbridge structure look like?

- I can say that me, Michael Belton and Mikhail Serdtsev* are co-owners of Wainbridge. I am not ready to reveal the percentage of business ownership. Now we are discussing the location of our headquarters, it’s most likely to be Cyprus.

- Do you already have projects for Cyprus?

- Yes, we are working on convenient invasion of Cyprus real-estate market. There are three projects under consideration. Moreover, we are planning to have our first deal by the end of I quarter 2020. Here we are aimed at realization of elite service apartments and A offices.

- What property division’s profile do you have on a foreign market?

- Our first project was in London, now we have projects in Paris, NYC, Courchevel, Carribean islands and on the French Riviera. We have our own property services company “The Collection” that shows our intention to move further in the segment of service apartments for a wealthy audience.

- These assets are on your balance?

- We never has a package less than 25%.

- What other foreign markets do you plan to enter?

- We launch new projects predominately in the countries we are already working. We are planning to launch two more projects in each country in 2020.

- As I know you participate in Bvlgari project on Bolshaya Nikitskaya Street in Moscow…

- This doesn’t contradict the established philosophy of Wainbridge, our company is a fee-developer in this project. Firstly, we created a concept, then we contacted LVMH Group, that already includes Bvlgari brand in its profile (structure?). By that moment the company has been searching for a project in Moscow for 5 years, that is why we quickly reached an agreement.

- MR Group is one of the fee-developers in this project. Is it a problem?

- At the beginning there was only one investor and one fee-developer. From the historic perspective, construction works in the center of the city the project looks very difficult. There are some other difficulties as well. MR Group was involved into project to resolve any technical difficulties that may occur in the process and to agree special parameters of the project with state institutions. Wainbridge is responsible for the project concept and marketing .

- Do you think about purchasing new construction areas in Moscow?

- Sure, we do. Moscow is a very interesting location for development. Strategically we are interested in service apartments niche, comfort-class property is not our priority. We are determined to find locations where it would be possible to offer business class property at affordable prices.

- These days there are many Moscow developers specializing in service apartments. Do you consider an opportunity to become a property services company here?

- It is difficult to find project with relevant quality and parametrs in Moscow to enter «The Collection» portfolio and where it can be service operator. But we constantly look for it. To be true though Moscow developers have made great progress but they are still far behind the Londoners.

- You are a co-owner of Protelux specializing in bioprotein (dietary supplement). Why did it attract your attention?

- As a person who deals with international investements I am always on the lookout for new interesting trends and investment products. Bioprotein is amazing scientific invention, with its help we can end hunger in the world. This business sector holds tremendous potential, and I suppose this investment can be even more profitable than in real real estate.