In connection with the war of the Russian Federation against Ukraine, the Western shareholders of Colliers decided to withdraw from the Russian business of the company, the company's press service reported. Knight Frank announced a temporary suspension of transactions between its London and Russian offices. Experts believe that the separation of the Russian divisions of international consultants into independent companies will increase competition in the consulting and brokerage sector, which will lead to a decrease in the cost of services in the market.
After the western shareholders of Colliers (the company's head office is located in Toronto, Canada) leave the local business, the Russian partners remain shareholders of the company. Nikolai Kazansky retains his position as General Director and Managing Partner of Colliers International LLC. The current team under the leadership of Mr. Kazansky will continue to work as an independent consulting company. According to the CEO, the company will change its name, but it is still in development.
In 2021, Colliers' revenue in Russia exceeded 2 billion rubles, the company told Kommersant-SPb. The total number of transactions in 2021 exceeded 1,000. The Construction Projects Management Department completed work on projects with a total area of 323,467 sq. m. Under the management of the company is more than 1.6 million square meters. m of space in all segments of commercial real estate.
The press service of the Russian division of the international consulting company Knight Frank, headquartered in London, spoke about further work in Russia for Kommersant St. Petersburg: “JSC Knight Frank is a company that has long been owned by Russian business leaders and cooperates with Knight Frank LLP under a license agreement. Independent status allows us in today's turbulent situation to reduce the risks that may arise as a result of public statements and actions of each of the parties to the agreement. In this regard, an agreement has been reached between the Russian company and our English partners on the temporary suspension of financial transactions between our offices.”
The press service of the Russian division of Jones Lang LaSalle Incorporated (JLL) commented: “It is still premature to make forecasts regarding possible changes in the market or in business. Our offices in Russia continue to operate.” On the website of the global company JLL, there are no statements about the suspension of work in Russia.
Colliers International Company was founded in 1876 in Toronto. The staff of the company's experts in the field of commercial and residential real estate includes more than 17 thousand people working in 64 countries around the world. In 2021, the international company's revenue exceeded $4.1 billion. Colliers began operating in Russia in 1994, today more than 600 employees work in offices in Moscow and St. Petersburg.
International independent consulting company Knight Frank was founded in London in 1896. More than 16 thousand employees work in 384 company offices in 51 countries. Since 1996, the company has been providing agency and consulting services in the Russian real estate market.
JLL is a brand and registered trademark of Jones Lang LaSalle Incorporated. JLL is on the Fortune 500 list of the largest companies in the world with annual revenues of $19.4 billion in 2021. JLL has over 98,000 employees in more than 80 countries around the world. Since 1997, he has been working in Russia, where the company is represented by offices in Moscow and St. Petersburg with 150 employees.
According to Mikhail Burmistrov, General Director of Infoline-Analytics, as a result of the current situation, competition in the consulting and brokerage market will increase, which will lead to lower prices for services. It will also allow meeting additional demand associated with the withdrawal of a number of international companies and brands from the Russian market and the release of retail and office space.
“Access to the expertise of foreign offices in one form or another will remain, and the Russians in terms of working with foreign real estate will work more actively with consultants in the countries where real estate is located,” the expert believes.
At the time of going to press, Maris, formerly known as Maris in association with CBRE, also announced its continued operation as an independent consulting company under its own brand. “Our company's business has for many years been based on complete independence, both financially and as a shareholder. Our office continues to operate under its own brand,” explains Boris Moshensky, General Director of the management company Maris.