Discovery Group, together with several institutional investors, has announced the launch of its first property development fund in Central and Eastern Europe (CEE). Discovery Group Fund 3C, an unlisted closed-end investment vehicle, has an initial target size of EUR 100 mln and will focus on development and investment in Czech Republic, Slovakia, Romania and the Ukraine. Discovery said the fund will also engage in opportunistic investments across the entire CEE.

Discovery Group, together with several institutional investors, has announced the launch of its first property development fund in Central and Eastern Europe (CEE). Discovery Group Fund 3C, an unlisted closed-end investment vehicle, has an initial target size of EUR 100 mln and will focus on development and investment in Czech Republic, Slovakia, Romania and the Ukraine. Discovery said the fund will also engage in opportunistic investments across the entire CEE.

According to the company, Fund 3C targets a return of more than 16%, with a duration of six years and a two-year investment period. The fund is registered as a Limited Partnership in Jersey.

The company also announced the appointment of Robert Hessenberger as managing director of the fund. Hessenberger has more than 20 years experience in investment banking, corporate finance and risk management throughout the Central and Eastern European region. He was head of Territory and managing director of the Czech operations of BNP Paribas Czech Republic since 1997, and prior to that he acted in managerial positions for WestLB in Turkey and Germany as well as ING Bank.

Commenting on the fund, Hessenberger said, 'Discovery Group Fund 3C's objective is twofold. We will look to invest into and develop institutional real estate, as well as undertake investments into under-managed assets and assets for redevelopment. We are an opportunistic development fund, one of the first of its kind in the region, with a strong management team already well-known and respected throughout the region.'

Discovery Group is a private development and investment company based in Czech Republic and Slovakia. Founded in 1997, the company specialises in mixed-use, retail commercial and residential development. Discovery currently has more than EUR 450 mln in its development programme.