Property firm GE Real Estate said it has made a $50 mln (EUR 35 mln) investment in Heitman Russia Property Partners, a new fund that will have $150 mln in equity. Along with GE Real Estate and two other institutional investors, fund manager Heitman is also taking a sponsor equity stake.
Property firm GE Real Estate said it has made a $50 mln (EUR 35 mln) investment in Heitman Russia Property Partners, a new fund that will have $150 mln in equity. Along with GE Real Estate and two other institutional investors, fund manager Heitman is also taking a sponsor equity stake.
HRUPP will aim to acquire development and refurbishment projects throughout Russia in the retail, office, warehouse and residential sectors. The fund is expected to commit about 60% of its capital to development projects made in conjunction with local Russian developers.
'We are very excited to be entering the market through this fund which will align our interests along with those of local Russian developers on individual projects. In an equity and debt-hungry market we believe this will provide us with an important point of difference to other investors operating within the market,' Karim Habra, managing director of GE Real Estate Central & Eastern Europe, said in a statement.
While this investment marks GE Real Estate's debut in Russia, the company currently has over EUR 1 bn invested in the Czech Republic, Poland, Slovakia, Bulgaria, Hungary and Romania.
The fund is slated to have a seven-year life and will be leveraged.
