Market research and analytic Development Appraisal and investment - PDF document

Market research and analytic Development Appraisal and investment analysis Property and facility management Investment advice Brokerage Consulting Geomarketing Retail real estate Horeca management

RRG Company: RRG (Russian Research Group) RRG Brokerage RRG Property Management Consulting Geomarketing Research Analytics Evaluation Brokerage Management Development

Huff’s innovative gravity model modified by RRG Company allows to define unique catchment area of a shopping center or a store and to forecast its sales, footfall, market share and rent rate within over 90% accuracy to actual figures. The questions are answered by: Denis Kolokolnikov Chairman of the Board RRG Company

What is RRG? In 2014 the number of consulting projects completed by RRG grew by 120%, in 2015 — by 150% What is RRG? People who ask this question probably expect to hear some sort of comparison between our company and one of our competitors. Yet it would be more pertinent to compare RRG… with an applied research institute, using the results of its studies to meet practical challenges, rather than with any of the existing companies. Originally we were founded as a research group but very quickly grew out of this dimension. Today we are the multiple-discipline concern RRG, investing serious funds in the invention of new technologies enabling an effective solution of most challenges involved in real estate development and possesion. Each of our works results in project’s considerable capital growth. We are leaders in applying GIS-technologies and geo-marketing to real estate, which allows us to perform complex investigations. We do not use any templates because each project is unique. We propose a responsible approach and do not fear to assume responsibilities. We do real works in essence rather than form. Every work is based on a conceptual idea. Do you have any more questions? I’ll be happy to answer them.

How old is RRG? The RRG monitoring database of the Moscow commercial real estate purchase and sale market contains more than 20,000 properties worth more than $120 billion and is conducted since 2004 RRG made its appearance on the market in 2005, having spun off from a marketing division of a closed investment fund. Now RRG is part of a holding company incorporating auditing, law and development departments as well as companies managing finances and specializing in hotel business. During its operation in the market RRG has conducted a multitude of large-scale studies in different regions of Russia and CIS, giving a good account of itself in the appraisal, management, development and brokerage markets. The annual growth of our major performance indices exceeds 100%. Our consulting partner is The Retail Consulting Group (France-based advisor of Carrefour and Auchan groups).

What it in future for RRG Lab? Laboratory of applied research (RRG Lab) already developed Huff’s innovative gravity model by RRG Above all, we’ll be raising the level of our core business — research, geo-marketing and consulting. We’ll also be promoting new lines of business opened in 2007-08, namely: investment consulting and brokerage, property management and maintenance and development. The company is getting ready to enter the world markets. During the ten years of its operations RRG has not had a single unsuccessful project and it is strategically important for us to continue our “success record”. The company intends to keep up the pace of expansion and triple its performance indices every year. A strategic goal of RRG is to create a company abiding by the highest standards and rendering the highest-quality services aimed at the delivery of real estate projects of any scope.

RRG employees: who are they? The RRG employees were involved in creating concepts for 85 properties Now our staff includes more than 100 skilled specialists — analysts, market experts, GIS specialists, business and real estate appraisers, investment analysts, PR experts, architects, 3D visualizers, brokers, experts in real estate development, management and investments. The uniqueness of our employees is in their universality. In other words, each analyst has a perfect command of the appraiser’s methods and techniques; any appraiser knows and understands what is needed by a broker etc. Most of our employees hold two university degrees. One of them is basic or fundamental education (degrees from MGU, MFTI, MAI and other prestigious Moscow universities) and another is applied (degree in economics and management at The Financial Academy and The Academy of National Economy under the Government of the Russian Federation, Plekhanov Russian Academy of Economics, etc. Many also hold - many employees also have). Many also hold CCIM and MBA degrees, being certified real estate market analysts and attested evaluators. RRG motivates its employees in such a way that each of them is interested in the success of any particular project and company’s development in general.

RRG experience is rated highly in professional sphere The RRG projects won 10 prestigious professional awards Our experts are regularly invited to talk to professional audiences. During ten years we’ve delivered reports at more than 100 conferences; every fourth employee of RRG is an active speaker. The company is a permanent participant of Russian and international forums, such as MREF, ProEstate, MALL, REX, MAPIC, MIPIM and others. For more than two years RRG specialists have been contributors for the Commercial Real Estate (CRE) magazine (the Moscow Districts columns). The results of RRG activities were celebrated by numerous professional awards; among them are Commercial Real Estate Moscow Awards 2007, the “small shopping center” nomination, the Russian Trading Olympus Award for “best concepts in the commercial real estate market ”; a special prize of the SC Rating according to RCSC for “the best corner shop concept.” In 2008 the company’s project Zhuk mall was included in the most promising projects of this year within the framework of the MALL 2008 exhibition, while Denis Kolokolnikov was nominated to the Person of the Year award according to CRE Awards 2008, 2010, 2011, 2012. RRG supports sports in the Russian Federation and has the status of General Partner of the Russian Judo Federation and the European Judo Union. RRG is a full member of Russian Council of Shopping Malls and Guild of Managers and Developers. Denis Kolokolnikov – general committee member of RSTC.

Special achievements RRG is holder of the Golden Brick – an emblem of victory at CRE Moscow Awards 2007 in the Small Shopping Center nomination The award was conferred for the shopping center Ocean, the first conceptual shopping center in the city of Zhukovsky. GBA: 7,000 sqm. GLA: 5,500 sqm. Anchor tenants: Spar supermarket, electronics supermarket Beringov proliv, children’s goods store Korablik

Services offered by RRG

Consulting Market research and analysis Geo-information systems (GIS) Appraisal and investment analysis Brokerage Retail real estate Development Property management and maintenance Investment consulting

Consulting Since 2014 RRG has developed 42 concepts of shopping centers and malls, 26 concepts of mixed- use complexes and 48 concepts of complex territory development The main consulting principle of RRG is an all-round and responsible approach. We realize that each project is unique and must be considered in terms of its appeal to investors and consumers and its conformity to the world real estate trends. Each of our reports is based on a thorough individually selected research; all our recommendations are well-grounded and confirmed by proven data. If you believe all consultancies produce practically identical and meaningless reports we’ll prove that you are wrong. RRG is a pioneer of cluster analysis in Russia. Whenever you need to study a competitive environment and a catchment area, the cluster approach enables a more accurate forecast than the concept of “accessibility within the 10-minute drive radius” used by many consulting companies. About 70% of the concepts we develop are then realized in real projects. We are willing to confirm the correctness of our concepts by signing intention agreements with anchor tenants and assuming the obligation to corroborate the rental income. Our professionalism has been attested by our awards for “the concept of easy reach”, “the best concepts on the commercial real estate market”, Cutting-Edge Project 2008 and others. Head of the department: Aydar Galeev.