FIRST PRIORITY

Kazakhstan 2017 | CONSTRUCTION & REAL ESTATE | COLUMN

TBY talks to Rinat Kassymov , Director General, Mercury Properties, on the sector.

Rinat Kassymov

What challenges exist in the market today?

Kazakhstan's real estate market today is fragmented; there are not many players that consolidate real estate and put it in their portfolio as investments. Investors here mostly choose to build and sell and not many build and operate for long-term assets. All this reflects the quality of the assets. There are a few companies that I know that have consolidated their assets, managed them properly, and as an option gone to international markets, such as Chagala Group and Global Development. But most investors just have a short-term vision with no real long-term development.

What would you say are Mercury Properties' main goals and priorities for 2017?

The first priority is acquisitions; we need to grow assets under management. Our second priority is to increase the diversity of our portfolio. We see investment opportunities in warehouses and logistics as well as in apartments for rent. In the US, blocks of streets are transformed into apartments for rent and it generates cash flow. Foreigners and people from other cities are comfortable when they rent from one client and they have all the infrastructure, services, and security. This is our preliminary vision for 2017-2018.