Russian real estate has emerged as a hot market--one that has caught the eye of some big-name investment banks who are jumping in both as lenders and via private equity arms. Morgan Stanley's private equity real estate unit announced its first deal last month. Merrill Lynch's private equity unit apparently isn't far behind. A Goldman Sachs fund has inked an alliance with local partners to invest. European banks have also been active, especially German and Austrian banks. All seem to think the returns will eventually exceed the costs and the headaches of a country in which it's notoriously hard to do business.

For more on this trend:
- Here's an Investment Dealers' Digest article (For FierceFinance readers)