C&W acquires leading Moscow firm.

Cushman & Wakefield has acquired one of the leading real estate services firms in Russia, Stiles & Riabokobylko, to strengthen further its position in Europe's fastest-growing market.

As of January 1, 2005, Stiles & Riabokobylko, which has worked in association with Cushman & Wakefield since 1998, will become Cushman & Wakefield Stiles & Riabokobylko (C&W/S&R).

The Moscow-based firm was established in 1995 and is one of Russia's leading real estate services firms with 100 people in its Moscow office.

Mark Stiles, who began his real estate career in Atlanta, and Sergey Riabokobylko will remain as joint heads of C&W/S&R.

C&W/S&R will be Cushman & Wakefield's third largest office in Europe and one of the largest real estate services firms in Russia. The office will offer a full range of services, including client solutions, agency, investment, advisory and financial services, research, property and project management across all key sectors of the Russian market.

Bruce Mosler, president and CEO-elect of Cushman & Wakefield, said: "Russia has one of the world's most dynamic property markets given the size and wealth of the country. It is the 'jewel in the crown' of Eastern Europe. Many of our global clients are there already and are looking to expand, and increasingly others are looking at entering the market."

John Travers, Cushman & Wakefield/ Healey & Baker's Senior Partner and head of its European operations, comments: "Opening in Russia is part of our wider corporate strategy, which is to capitalize on the developing dynamics of the Central and Eastern European region and to build on our already dominant position in Central Europe."

Mr. Stiles, comments: "We have built up a strong partnership with Cushman & Wakefield over the seven years of our association. The logical next step is to become part of Cushman & Wakefield. This will open the doors to leveraging the skills and resources of Cushman & Wakefield on a global level, which in turn will greatly benefit our clients."

Russia is Europe's biggest country in terms of population (143 million), and it has the fastest-growing economy. Economic growth has averaged nearly 7 percent a year over the past five years, driven by high commodity prices, especially for oil and gas, and rising domestic consumption.

Retail is a particularly strong market in Russia at present. "The Russian retail market is becoming increasingly sophisticated and developed," said Mr. Stiles.

"This is being led by the aggressive expansion of retailers and developers in the Moscow area as well as in Russia's regional markets. We believe that the market can absorb as many as 50 new developments each year over the next ten years."

The investment market is also increasingly an area of interest for players from outside Russia. "The market is reaching a level of maturity that is attracting the institutional investor; yields are 13 per cent and over, and there is a greater amount of prime space coming onto the market and a greater awareness among local developers and property owners of the requirements of institutional investors."

Key projects and transactions in which S&R has been involved this year in association with C&W/H&B include:

Appointed by ZAO Moscow McDonald's as exclusive selling agent for Russia's first office/ retail portfolio investment sale valued at US$44.5 million

* Leasing agency of Novinsky 31, a 9-story, office/retail project in the center of Moscow.

* Initiated pre-leasing as exclusive leasing agent for Krylatsky Hills International Business Park, Moscow's first non-central, class-A office development. Stiles & Riabokobylko also acted as design consultant on this landmark project.

* Corporate tenant representation for major corporations including Microsoft, Boeing and Sun Interbrew.

* Appointed by ZAO Moscow McDonald's as exclusive selling agent for Russia's first office/ retail portfolio investment sale valued at US$44.5 million.

* Property advisor and co-manager of Eastern Property Holdings (EPH), the first publicly traded (Swiss Stock Exchange) investment vehicle for Russian real estate. In late 2003, S&R helped EPH raise nearly $40 million from private investors to establish the fund. In 2004, additional funds were raised for a total current value of around $60 million.