OREANDA-NEWS. August 26, 2011.   Commercial real estate is the market, the revival of which was expected for not only by its members, but also by the economy of the whole country. Not only because specifically construction was the engine of the economy for the past few years, but also because of the growing necessity of business in good projects. Alexey Chernyshov, the Head of supervisory board of AVEC Group of companies, speaks about how it was managed not only to return this industry to life, but also to activity.

 Implementation of real estate projects has always been of the highest priority to us – this is what we do professionally. Speaking of commercial real estate, our interest in it didn’t arise spontaneously – we understand the today’s growing business of Ukraine needs new projects of international level. Our possibilities – both technical and professional (I mean professionals of different levels who work in the group of companies) – allow not just meeting these needs, but also setting the tone in the market.

 Today AVEC – is a group of companies that successfully manages different assets including those in real estate. How did you come to it?

 The origins of AVEC are in successful business of Alexander and Boris Feldman. The company quickly grew and developed, mastering new types and directions of business. Natural processes of its consolidation took place. And all the businesses of AVEC were built from zero. However, we have always been distinguished and are distinguished by clear understanding of our abilities, our goal and incredible desire to achieve it. We have always been and remain quite demanding to ourselves, but objective at the same.

 In today's market there are many companies with big ambitions and pretensions to leadership. Many have gone out of business due to many reasons, but one of them – the lack of understanding of business management. It is worth mentioning that AVEC today – is not just a group of companies with assets in various businesses, but also the management team which clearly understand the realities of the market and dynamics of business for years to come. In the words of Johann von Goethe: "It’s not sufficient to know, it’s a must to apply. It’s not sufficient to want, it’s a must to act.” Let’s agree that this formula works well for many managers only in theory. Practice - is another matter. Our team not only knows what it does, we want - and we do it. I think this is what distinguishes us from the others.

 Speaking of specific directions that AVEC group of companies works in – there are several of them. They are financial and insurance businesses, we have media business, but the emphasis is on commercial real estate. Let me explain why. We believe that this segment has not exhausted itself, and has great potential. For example, if we look at the statistics, we can clearly see the difference between the number of square meters per capita in Europe and here. I am sure that the welfare (and hence the purchasing power) over time will increase. Accordingly, the demand in sales area will increase in turn.

 Many domestic companies turned out not to be ready to economic shocks that touched Ukraine in 2008. Were there any difficulties for you?

 Yes, it would be illogical to deny the crisis, it also affected our company. But for us it became a kind of historical Rubicon, letting us to evaluate and reconsider the values and our own potential, to identify our strengths and weaknesses, to set priorities and to realize what we expect from the future and what we are ready to do for that. Thus, we see our future in the professional management of the company with all its attributes: ambitious team, business processes, perspectives, etc. I can’t say that we are opening America in this regard or that this is something new for us. It was, but the demands of today have made their adjustments. To tell the truth, the emphasis in this area specifically helped to survive in crisis. We have strengthened management, identified the main and long-term business directions and began to focus on them. This allowed the company to consider development projects in Kiev, to put into operation the large shopping and office center PLATINUM PLAZA, finalize the project of large shopping and entertainment center AVE PLAZA in the center of Kharkov, and to plan entry into the financial segment in 2011.

AVE PLAZA is a breakthrough in the market. Share the secret, how did you manage to attract foreign investors?

 Shopping and office center AVE Plaza is a unique project in Kharkiv – both in terms of architectural concept, and its location. The object is located in the downtown area. And you're absolutely right - this project can be called a breakthrough in the market, as it is currently the only project of entering of Western investor in commercial real estate in 2010. One can write off much of the uncertainty of the situation, wait for better times. But the main thing for cooperation with foreign investors – is to make him the best and, what is most important, the fair price offer, and precisely fulfill the taken obligations. Of course, it should be noted that today the Western partners’ analyses of investment projects sensitivity became stricter. But we can minimize various risks. Moreover, we have chosen the strategy of openness and culture project management. Today money follows management and successful business is the one that has modern system of company management and corresponds to high international requirements. In addition, now we understand as never before: only such company has perspectives that not only world-class projects, but also follows the principles of the so-called socially responsible business – when investing in an object, we give it to tenants and customers additional benefits.

Which ones?

 For example, take Barabashovo project. We support adequate rent rates, giving tenants the opportunity to develop, provide them with protection from the criminal milieu. Anyone who rents from us, receives a free weekly newspaper. We are involved in urban infrastructure programs – recently opened a medical center. After all, what is social responsibility in architectural environment and how to change it?  For example, we have opened PLATINUM PLAZA in the center of Kharkov. Invested in acknowledged architects who created a worthy object, giving the city a more modern look. Many residential and commercial developers consider that it’s better to invest less and to get more. But AVEC cannot and does not want to afford it. As a leading developer in city, we value this role and we want to create projects that are changing the face of Kharkov and bring it closer to European standards. And our approach in this sense is linking our business goals to social priorities.

And in conclusion – tell some about the perspectives of the group of companies…

 You know, the question of the prospects is akin to the question of creative plans for representatives of arts and culture. Of course, the growing human being and the company have great majority of the plans – both specific and rather vague. This also applies to us. AVEC is full of optimism and confidence, which are backed by the practice and pragmatics. We are a stable company that conquered a number of professional peaks. But pioneers are always beckoned by unconquered peaks, and this is what is most interesting for us in the near future.

 Does it mean that the market should expect for new projects?

 This means that we intend to grow all the time – both in quantity and quality of projects and in new directions. In addition, we will open up new regions: Kyiv, Sumy, Crimea, and also, possibly, other countries, to set the tone everywhere and to show the example of the level, which has already become a tradition for AVEC.