Pavel Goncharov: MIPIM – hunt for oysters turned into hunt for investors

Representatives of business and authorities from St. Petersburg and Leningrad region traditionally take an active part in MIPIM exhibition. Pavel Goncharov, CEO of PROEstate Events, Vice-President of Russian Guild of Property Managers and Developers, told us about the program of St. Petersburg delegation this year and explained what is the difference between MIPIM 2014 and MIPIM 2008.

- This year MIPIM celebrates its 25th anniversary. It is not the first time when PROEstate Events and GMD bring Russian delegation to MIPIM. Pavel, do you think the exhibition itself and Russian presence there have changed recently?
- To be accurate, we went to our first MIPIM 6 years ago. Today everyone, who was at MIPIM 2008, will tell you that the exhibition has significantly changed in terms of Russian presence. Sometimes it seemed that Russia was only present at flashy parties, never presenting its investment projects. One could think that there were no real Russian businesspersons at MIPIM. However, it is not true. There were decision-makers, hidden beside the dressy curtains.

- And now Russians became more modest? At least Sergey Polonsky, the famous party goer, will miss MIPIM this year…
- MIPIM atmosphere, as well as the atmosphere of all such events, inclines its participants to informal communication. Today representatives of Russian regions and business have significantly raised efficiency of their participation. There are more preplanned meetings, projects presentations are better, discussions became more honest. Members of the delegations also agree that these changes are positive. Most of them consider MIPIM an important venue for searching partners and getting relevant information about the new trends on world real estate market. There are enough reasons to trust their opinion - during 6 years we have brought to MIPIM more than 1000 delegates.

- Has the foreigners’ vision of Russia changed?
- Our foreign colleagues realize that the slump in investment activity of 2008-2010 is over, and Russian real estate investment market is moving forward. In 2013 amount of investments equaled to pre-crisis period. However, most of the deals are concluded between Russian market players. At Investors Club we discussed that last year the share of in-house investment on Russian market was at least 75%. But it’s good to see that the situation changes. International companies, which enter the Russian market, understand that there are some difficulties and peculiarities, but the payoffs exceed the risks.
 
- You contribute into this process organizing the delegation.
- I hope so. Last year 20 000 participants came to MIPIM. It is a huge resource, which has to be properly used. Each year our delegation gathers around 250 persons. At MIPIM we work not only with representatives of business, but with regional administrations and governmental bodies. This year we will hold a series of events at the stand of Moscow City Government: conferences, discussions and traditional Investors Club session. We also develop daily conference program at the stand of St. Petersburg Government. Thanks to our close collaboration with Moscow and St. Petersburg administrations, members of the delegation have possibility to establish dialog between business and authorities. Russian Housing Development Foundation is our reliable partner as well. Each year they present at MIPIM their land plots and upcoming auctions.

- I remember that last year St. Petersburg did not have a stand at MIPIM.
- I think it was the only time since 1998. This year the city has a big beautiful stand featuring interesting conference program.  I would like to notice that this year St. Petersburg is going to present projects from different sectors, which will definitely be interesting for investors. St. Petersburg will also present its investment policy, perspective transport and logistics projects, social infrastructure, sports facilities, projects in culture and tourism. It is crucial because we need to create positive image on the world market. There are many superstitions and stereotypes of Russia, which have negative impact on our business. Unfortunately, St. Petersburg has not escaped from this fate.

- Russian Guild of Property Managers and Developers also has a stand this year.
- As usual. But this year GMD stand got redesigned – it became more convenient and modern. Work meetings, project presentations and other activities will be taking place there during 4 days of exhibition. GMD co-exhibitors are Homeland Group and RG-Development. B2B Development and Lindab Buildings will also present their services at GMD stand, which has favorable location this year. It is placed in main MIPIM exhibition zone near the central passage, inside Palais des Festivals. GMD honorable neighbors are Colliers International, Pramerica real estate investors, NAI Global, DVI Group, Sberbank, Barcelona, Morgan Stanley.

- We expect PROEstate to keep up with MIPIM. Have you already set the dates for it?
- This year we are holding PROEstate for the 8th time. The venue is the same – Moscow, Expocentre. We keep developing the Forum’s format: both conference program and exhibition space. Preparations are on. The Forum will take place on September 8-10, 2014. We plan to hold a work meeting on PROEstate at MIPIM.

Information:

PROEstate Events – is an international event and business agency engaged in different projects in real estate field.  We organize tailor-made business events such as conferences, forums, exhibitions, international business tours and targeted work meetings. Our main activities are: International Investment Forum PROEstate - multi-format and multi-disciplinary event focusing on urban development and real estate market; conferences, exhibitions, work meetings in Russia; international business tours to leading real estate development markets; educational programs aimed at rising professional level of Russian market players.