U.S. Real Estate Franchise To Open in Russia
Washington —
The Overseas Private Investment Corporation (OPIC) has approved a $3.6 million loan to a U.S. small business that plans to franchise the real estate brand Century 21 in Russia, introducing standardized homeownership practices to the largely unregulated real estate market in the country.
Olard Trading Limited, a small business majority-owned by two U.S. citizens, will use the loan to establish a network of Century 21 offices across Russia, beginning in Moscow and then expanding to other major cities, according to a July 12 OPIC press release.
Russia’s real estate market is growing rapidly and more than 4.5 million families are awaiting housing, the press release said. Most homes are sold on a cash basis, resulting in little or no payment of taxes.
By creating regulated franchises with standardized services, the project will support the development of Russia’s private sector, OPIC said.
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