Tinkoff Capital Introduces the Closed Investment Fund Tinkoff Square Meters
Tinkoff Capital Management Company has announced the launch of a closed investment fund named Tinkoff Square Meters. The fund makes it possible to participate in real estate investments with a remarkably low entry cost, measured in rubles. This approach is presented as a way to broaden access to real estate exposure for a wide range of investors in Russia, including those without prior experience in real estate markets.
The stated strategy concentrates on secondary and residential properties that are under construction, with a goal of appealing to a broad investor audience. By purchasing fund shares, investors may benefit from the anticipated rise in real estate values over time. The fund notes that the average price per square meter in Moscow’s secondary and primary markets has risen significantly over the past five years, and more than doubling over the last decade, which forms a core part of the investment thesis.
One of the fund’s planned strategies is to acquire properties during their construction phase and sell them at a higher price once they are completed and brought into operation. Looking ahead, the fund intends to pursue additional strategies tied to the secondary housing market. Possible development paths include acquiring properties, renovating them, and selling them to capture added value. These strategic directions are to be executed under the oversight of Tinkoff’s team of real estate market specialists.
The fund’s management and the selection of investment properties will be handled by Tinkoff’s in-house experts who specialize in real estate market analysis and asset qualification. The initial portfolio will feature 11 properties from the Lunar premium residential complex, located in Moscow’s Gagarinsky district near Vorobyovy Gory and Moscow State University. The developers plan to have this complex operational in the fourth quarter of 2023. In the near term, the fund is also expected to include apartments from the Sky View premium complex in the Presnensky district of Moscow.
According to a sales manager at Tinkoff Investments, real estate has long been seen as a reliable asset class for long-term wealth accumulation. The message highlights that while traditional real estate often required substantial upfront capital, the Tinkoff Square Meters fund aims to democratize access. The intent is to enable a broader population to participate in potential value appreciation and to offer a tool for portfolio diversification and inflation protection, regardless of the size of an individual portfolio. This perspective underlines the fund’s aim to broaden participation in real estate investment across a wider segment of investors. [Source: Tinkoff Investments].
The fund is denominated in rubles, and its assets are registered within the Russian Federation, an arrangement described as reducing certain risk factors. Investor protection is also emphasized through the use of an escrow arrangement, whereby funds are only released to developers after contractual milestones are met. This mechanism is presented as part of the safeguards for investors and the alignment of interests between developers and fund holders. [Source: Tinkoff Investments].