Heitman´s fourth value-added fund, Heitman European Property Partners IV (HEPP IV), has made its first investment in the Russian property market with the purchase of an office building in Moscow’s Voykovsky district from developer Capital Partners. Financial details were not disclosed.

Heitman´s fourth value-added fund, Heitman European Property Partners IV (HEPP IV), has made its first investment in the Russian property market with the purchase of an office building in Moscow’s Voykovsky district from developer Capital Partners. Financial details were not disclosed.

The property, known as Office Building 2, offers some 22,500 m2 of space over 11 storeys. It is part of the 311,000-m2 Metropolis complex, which encompasses three office buildings and a shopping centre on the office corridor connecting Moscow city centre with Sheremtyevo Airport. Completed in 2008, the asset is now fully leased to multinational corporate tenants.

´Moscow is an increasingly dynamic economy and Office Building 2 is an outstanding property by which to make our first footprint in this market,´ said Gordon Black, senior managing director of Heitman's European private real estate equity group.

With EUR 505 mln in equity commitments, HEPP IV is the latest in a series of European value-added property investment funds managed by Chicago-based private equity group Heitman, which has been active in CEE since 1995.

The vehicle's first purchase was the acquisition last year of a plot of land in Poland for the development of 900 residential units. In late 2010, Chicago-based Heitman also completed the second and third investment for the fund with the purchase of a 75% stake in the Galeria Malta shopping centre in Poznan from Spanish developer Neinver and the creation of a 50/50 JV with Hungary's Trigranit for the Arena Centar mall in Zagreb, Croatia.