This segment is represented by a number of companies, the key ones being Leader Invest (property development) and Business Nedvizhimost (rental assets). Sistema's strategy in real estate is focused on increasing portfolio value with a view to its subsequent monetisation through rental income, property development and sales.
Leader Invest is a development company carrying out housing and commercial real estate projects in Moscow. The portfolio includes 45 projects with a total area of roughly 3.0 million sq m. The priority segment is housing construction – both small infill construction projects and large-scale comprehensive development projects.
In 2016, the company shifted its focus from infill construction, where it has certain experience, to comprehensive development projects. Diversification of the portfolio through the inclusion of large-scale projects ensures the company's continuous operations until at least 2019. Infill development is represented by 42 projects with a total area of 520,000 sq m. The average area of one project is small and amounts to 12,000 sq m, with the implementation period of 2.5 years.
In 2016, the competence of in-house sales service was significantly strengthened – most of the services of brokerage companies were replaced by own resources in 2016, and four additional sales offices were opened on the construction sites.
Comprehensive development is represented by three projects: ZIL Yug (872,000 sq m), Nagatino i-Land (472,000 sq m) and 120 Lobachevskogo St. (243,000 sq m). The company's total project portfolio doubled in 2016, reaching 3.1 million sq m.
Business Nedvizhimost is managing, leasing and operating commercial real estate. The company owns over 300,000 sq m of real properties in Moscow, and also has assets in Saint Petersburg.
Business Nedvizhimost has a unique pool of properties: mansions in the centre of Moscow, office and commercial space, business centres located almost in each district of the capital, and manufacturing and storage facilities in Moscow and the Moscow region.In accordance with the approved work plan for 2016, the company leased out 29,703 sq m and sold three real estate properties.