The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Commercial Property Sector Responds to Russia Sanctions

Commercial Property Sector Responds to Russia Sanctions
04 March 2022
 

As a growing number of firms seek to distance themselves from Russia after the invasion of Ukraine, what are the major players in commercial real estate doing?

 

British Land Looks to End Office Lease With Russian State-Owned Gazprom

 

The Gazprom group of companies is the world's largest gas producer and one of the world's largest energy companies. The majority of Russia-based Gazprom is state-owned, which has led to some customers and suppliers seeking to cut ties with the company, in protest at the current events in Ukraine.

In addition, London-based Gazprom Marketing & Trading (GM&T), the trading arm of the group, is at risk of having its rental contract axed by landlords British Land.

GM&T is based at 20 Triton Street near Regent’s Park, London and the property comprises 255,000 sq ft of office space.

 

"We have a historical contractual agreement with Gazprom at Regent’s Place and will exit this arrangement as soon as we legally can."

–British Land

 

British Land has stated to the Financial Times that they are looking to exit the deal as soon as possible:

“We have a historical contractual agreement with Gazprom at Regent’s Place and will exit this arrangement as soon as we legally can. This is a fast-moving, complex situation, and we will continue to review all measures that are available to us, while remaining fully compliant with sanctions requirements.”

 

RICS Message to Its Members

 

On Thursday 3 March 2022, The Royal Institution of Chartered Surveyors released its own statements relating to the situation in Ukraine.

This included reminding its members of “the important role they play in ensuring that sanctions are complied with,” including requirements relating to terrorist financing, anti-money laundering policies, and checking sanctions lists for their own jurisdiction before working with clients.

RICS also highlighted the need for firms and members to comply with the Rules of Conduct of the institution: Rule one requires them to act with integrity and Rule five requires them to act in the public interest and maintain public confidence in the profession.

The press release states: “Members and firms should consider the risk to their reputation, the reputation of the profession and the public interest in deciding whether to accept instructions from specific clients.”

 

Social Media Responses

 

Those from the commercial real estate community shared their thoughts on RICS’ response on social media, indicating that the global professional body should go further:

Property Development Company CEO Glyn Pritchard-Jones wrote in response to a RICS post on LinkedIn: “My question to the RICS leadership AGAIN is ‘are you going to suspend RICS members in Russia?’”

Corporate Real Estate and FM Executive Alex George also commented: “Very weak response from a Global institution”

Picture: a photograph showing a RICS sign on a brick wall. Image Credit: Shutterstock

Article written by Ella Tansley | Published 04 March 2022

Share



Related Articles

Real Estate Operations in Russia – The Industry Reacts

Several major players in the global real estate market have published statements on their stance on business operations in Russia.   CBRE to Discontinue Most...

 Read Full Article
How a Russian Invasion of Ukraine Could Affect Global Markets

In the event of a Russian invasion of Ukraine, several markets could feel the effect, including energy, grain and fuel. The USA, UK and the EU have already begun...

 Read Full Article
JPC by Samsic Expands British Land Portfolio to Include Norton Folgate

JPC by Samsic has been appointed as the cleaning specialist for the redeveloped Norton Folgate​ in East London. As part of their existing relationship with British...

 Read Full Article
The Demand for Retrofit Advice

With retrofit remaining a key buzzword in the built environment, the demand for good quality guidance on the matter is growing.    Watch the...

 Read Full Article
British Land and Royal London Form Joint Venture to Operate 1 Triton Square

British Land has sold 50 per cent of its stake in 1 Triton Square at Regents Place to Royal London Asset Management Property. The companies have formed a joint...

 Read Full Article
Printworks Will Remain a ‘Cultural Destination’ for London, Says British Land

As part of its Canada Water Masterplan, British Land hopes to “reinstate a permanent cultural venue” at the Printworks building. The venue closed its doors...

 Read Full Article
Insights from RICS UK Facilities Management Survey

The Royal Institution of Chartered Surveyors has published its latest quarterly FM survey, which collects data from facilities managers, service providers and FM...

 Read Full Article
RICS Publishes Manifesto for the Built Environment

The Royal Institution of Chartered Surveyors has launched its manifesto to inspire a roadmap for the built environment in the lead-up to the next UK General...

 Read Full Article
British Land Secures Planning for Southwark Logistics Hub

British Land has received a resolution to grant planning permission for a logistics hub in Southwark, the latest scheme in their London urban logistics...

 Read Full Article
Meta Breaks Lease on 1 Triton Square

Social media company Meta has paid £149 million to surrender its lease on its London office at 1 Triton Square. Building owner British Land reported the news in...

 Read Full Article