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News Release

Kiev - Moscow

Ukrainian economy and investment market, H1 2009


Kiev - Moscow, 14 October 2009 - Jones Lang LaSalle has published the Ukrainian economy and investment market report for H1 2009. According to Jones Lang LaSalle economic indicators declined in H1 2009. This led to risks escalation of investing into Ukrainian economy and in commercial real estate, in particular. There were only few deals, all under USD 5 mln in H1 2009.

Investors are trying to minimize the risk and now they are interested in standing high quality projects with 3+ year leases and strong covenants. Office and retail sectors are the most attractive for investors. These sectors demonstrated the sharpest decline of rents (from Q3 2008 to Q2 2009 prime rents in both sectors fell by 50%) and are bottoming out now, whereas the rental correction in the warehouse sector is expected to continue. Investor attention has shifted back to more mature Kiev market, which offers lower risks, higher market transparency and a broader range of prime assets for sale than in the regions. Ukrainian investors remain the key players, because they are better aware of domestic specifics and risks.

Maria Shkarpetina, analyst of the Strategic and economic department of Jones Lang LaSalle, Kiev noted: “We expect H2 2009 investment activity to be higher than H1. There are several deals at the final stages of negotiation. However we do not forecast large investment volume. Forthcoming presidential election in January 2010 does not inspire potential investors and they prefer to adhere to wait-and-see policy”.
 
 
 
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specialising in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2008 global revenue of $2.7 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.3 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $36 billion of assets under management.
In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg, Kiev and Almaty. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008 and 2009 at the Commercial Real Estate Awards, Moscow and Consultant of the Year at the Commercial Real Estate Awards 2009, St. Petersburg.
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