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. Last Updated: 07/27/2016

ABP Shuns Investments in Russia

AMSTERDAM -- Dutch pension fund ABP, one of the world's biggest institutional investors, said last week that it was poised to make its debut Indian property investment and that the Russian real estate market was "strongly overheated."

ABP -- a leading shareholder in firms such as British Land, Unibail Rodamco, and Land Securities -- also said listed property in Europe was still ripe for takeovers and mergers.

"Consolidation will play a more important part in future because companies will have to strive for more efficiency and find ways to boost operating income," said Patrick Kanters, ABP's managing director of real estate for Europe and Asia Pacific. Kanters said ABP wanted to lift its exposure to the Pacific-Asian region.

In contrast, he said ABP found real estate investments in Russia unattractive, citing a relative lack of transparency and hotel room rates or office rents in Moscow that were expensive even by the standards of more established business centers in western Europe.