Cushman exits Russian business
Cushman & Wakefield has followed its largest rivals in ending its business dealings in Russia as the country’s war in Ukraine continues.
The agency said it has agreed to transfer its Russian business to a local operator, adding that the move will not have a material impact on its financial statements or future operations.
In a statement announcing the divestment, the agency said it “stands firmly with the global community in the hope for peace”.
Cushman & Wakefield has followed its largest rivals in ending its business dealings in Russia as the country’s war in Ukraine continues.
The agency said it has agreed to transfer its Russian business to a local operator, adding that the move will not have a material impact on its financial statements or future operations.
In a statement announcing the divestment, the agency said it “stands firmly with the global community in the hope for peace”.
The biggest agencies have now all called time on their Russian activities, more than a month after Russia’s initial invasion of Ukraine. (See also Colliers and CBRE latest agencies to exit Russia)
On Cushman’s full-year earnings call in February, chief economist Kevin Thorpe offered his take on the likely effect on the real estate markets of the war.
“There’s geopolitical risk that’s forming with Russia [and] Ukraine as that relates to oil,” Thorpe said. “I would say, just in my view, it’s really too soon to say precisely how that conflict will impact the property sector.”
He added: “The stock market is subject to these wild daily swings – real estate is not. Real estate is more grounded in local economic fundamentals and generally has a longer investment horizon, with valuation supported by long-term leases… It’s actually possible that this conflict could drive interest rates even lower, making spreads even more attractive, [and] could actually drive demand for core real estate up.”
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