Eastern European asset manager East Capital has launched a new closed-end fund targeting Russian retail properties, the company said on Wednesday. The vehicle, East Capital Russian Property Fund, will invest in shopping centres and retail assets in regional cities with more than 500,000 inhabitants in Russia, Ukraine and Kazakhstan. The vehicle will target an initial size of EUR 200mln and will be managed by East Capital Private Equity.
Eastern European asset manager East Capital has launched a new closed-end fund targeting Russian retail properties, the company said on Wednesday. The vehicle, East Capital Russian Property Fund, will invest in shopping centres and retail assets in regional cities with more than 500,000 inhabitants in Russia, Ukraine and Kazakhstan. The vehicle will target an initial size of EUR 200mln and will be managed by East Capital Private Equity.
'Our local presence and expertise and the extensive network that we have built up investing in these markets over the past 10 years will be of great value as we primarily seek to invest in attractive properties unavailable to mainstream investors,' said CEO Kestutis Sasnauskas.
The fund aims to achieve an unleveraged Internal Rate of Return above 15%. In a statement, East Capital said it expects the fund will be able to start its investment activities during the summer. The fund has a seven-year life with possible extension for another three years.
Stockholm-based East Capital has offices in Moscow, Paris, Hong Kong, Tallinn, Milan, Vienna, Moscow and Oslo. The company manages over EUR 4.4bn of assets.
