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Moti Zisser heading for Russia By Michael Rochvarger Despite the financial crisis rocking the world and the collapse of Russian equity prives, Plaza Centers yesterday confirmed plans to launch business activity in Russia. The company, which is the unit through which Moti Zisser handles his investments in shopping centers and entertainment venues in eastern Europe, will be pursuing the Russian development together with a Russian real estate firm owned by Alexander Chigirinsky, Snegiri Development. Plaza Centers is a subsidiary of Zisser's real-estate and medical technology holding company, Elbit Imaging. Advertisement Plaza Centers, which was managed by Ran Shtarkman, has taken a painful hit this year. Its share price has lost 80% of its value. The company, which is listed on exchanges in London and Warsaw, has seen its market cap drop to about GBP 350 million. In fact, Plaza Centers' share price fell more sharply than the European Public Real Estate Association/ National Association of Real Estate Investment Trusts index (EPRA/NAREIT Europe). That is an index of representative real estate companies listed in Europe, which fell about 60% during the same period. TheMarker: Russia today is perceived as a very problematic business environment. The Russian stock exchange is collapsing. Why have you chosen this as the time to move into this market? Shtarkman: "We haven't formally moved into Russia yet. Our teams are now investigating the appropriate infrastructure needed to establish activity in the country. Until recently prices in Russia were crazy, and land was being bought at uneconomical prices. Things are looking different now, and the country definitely holds quite a bit of potential for us." In the past you have declared that Russia's political climate did not suit you. What has changed? Shtarkman: "We continue to follow political developments in the country carefully. Unlike central and eastern Europe, where we built everything by ourselves, when we move into Russia we will operate with local partners who will deal with all regulatory and bureaucratic issues." Are you not hesitant over assessments that Russia could slide into a severe economic slowdown? Shtarkman: "The products sold in shopping centers that we build are not aimed at the rich, but are products for the middle class who also consume them in times of [economic] slowdown." How do you intend to duplicate the model you have created for Europe, in Russia? Shtarkman: "Moscow already has shopping centers like the ones we specialize in, but there is still quite a bit of demand. On the other hand, most of the demand for such centers is in Russian cities like Nizhni Novgorod, Rostov and Saratov. In Israel people think that these are small places, but each of these cities has a population of at least 500,000-700,000 residents. Once we begin operating at full speed, there is no reason why we should not be successful in Russia as well." What other locations are you considering? Shtarkman: "We are looking into Ukraine, where there is no less, and perhaps even more potential for commercial and entertainment centers." How is the crisis in eastern and central Europe affecting your centers? Shtarkman: "It's embarrassing to admit in light of what is happening on the markets, but there has been no downturn in activity yet. Rents continue to be paid on time, and there has been no decrease. Nevertheless, we aren't immune to what is happening in the markets either, and if the crisis worsens there could be price adjustments." Although Shtarkman notes that no binding agreements have been signed with Snegiri, the Russian company's Web site quotes its CEO Sergei Demin in a financial press conference held on Monday as stating that Snegiri has signed a joint venture agreement with Plaza Centers to build shopping centers in Russia. Demin added that the parties plan to build one or two shopping centers in each of 15-20 cities in Russia, under the Plaza brand name. The Russian company's chief also noted that as of the end of the second quarter of 2008, Snegiri had liabilities totaling $200 million. Bookmark to del.icio.us   Damaging remarks Right-wing MK Lieberman says Egyptian president Mubarak can "go to hell." Joe on Israel Overnight media sensation says Obama presidency would spell "death of Israel."

Read & React Joe the Plumber: A vote for Obama is a vote for the death of Israel Responses: 415 L.A. Times defends decision not to release clip of Obama with Palestinian critic of Israel Responses: 124 Syria demands UN action against U.S. over raid Responses: 113 IDF soldiers protect Palestinian olive farmers from settlers Responses: 82 Aluf Benn: Americans must worry first about America, not Israel Responses: 56 Bradley Burston: Voting as a religious experience Responses: 8 More Headlines 00:45 Lieberman: Mubarak can 'go to hell'; Egypt responds: Lieberman is a racist 20:05 Biden, in Florida, stresses his, Obama's commitment to Israel 22:29 Iran's supreme leader: Hatred for U.S. runs deep 00:48 Netanyahu rebuffs Shas bid to control Education Ministry 00:52 U.S. may close Damascus embassy in wake of Syria strike 23:50 International summit on status of Israel-PA talks scheduled for next month 00:00 Wiesenthal Center gets green light to build museum on ancient Muslim cemetery 23:28 Kosher U.S. meatpacker fined $10m over labor law violations 17:18 Court approves right-wing march through the heart of one of Israel's largest Arab cities 20:26 Barak to officials: Take action against right-wing activists in West Bank 16:03 IDF troops kill Palestinian farmer, 68, near Jenin 10:51 Protest boat arrives in Gaza, despite Israel's vow to block it 14:22 Joe the Plumber: A vote for Obama is a vote for the death of Israel 10:52 4 Palestinians claim descent from Jews forced to convert Previous Editions Select Day 29 oct 28 oct 27 oct 26 oct 24 oct 23 oct 22 oct 21 oct 20 oct 19 oct 17 oct 16 oct

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