First Vice President of JSC TPS Real Estate Alexei Chinaliev took part in the filming of a video commercial for the Russian Breakfast, as an expert. The traditional event with key Russian experts participating was held as part of the investment forum MIPIM 2016 in Cannes in mid March.
The main topic of the Russian Breakfast was the economic crisis in the commercial real estate market of Russia and modes of survival in a new environment. One of the main problems discussed was the possible loss by landlords of their assets to banks because of default on debt repayment.
In the words of Mr. Chinaliev, banks are not interested in foreclosing on the assets of their debtors who lost their solvency and the ability to repay their debts. “In most cases the bank tries to come to terms with the debtor,” noted Chinaliev. The reason is simple: they just do not want to burden themselves with distressed assets. What’s more, property management is a non-core business for financial institutions and, as we could see during the previous crisis of 2008, banks try to evade this outcome where possible.