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.
“The establishment of Century 21 offices throughout the county will introduce standardized real estate practices to a largely unregulated industry, improving its efficiency and enabling it to serve as an engine of even greater economic growth,� said OPIC President Robert Mosbacher Jr. “OPIC is pleased to support a U.S. small business in a project with so many developmental benefits.�
The press release stated that if the initiative is successful in Russia, franchising of the Century 21 brand “will be extended to other countries of the Newly Independent States.�
A press release issued July 13 announced that OPIC also had approved $100 million in financing for ZAO Europlan (Europlan) to support the leasing of equipment and vehicles to small and medium-sized enterprises throughout Russia in 2007 and 2008.
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