Mint Investments, the Central European developer and investor formerly known as CEC Capital group, is teaming up with Avestus Capital Partners - formerly Quinlan Private - to launch a new closed-end property fund, Mint Central Europe Property Fund.
Mint Investments, the Central European developer and investor formerly known as CEC Capital group, is teaming up with Avestus Capital Partners - formerly Quinlan Private - to launch a new closed-end property fund, Mint Central Europe Property Fund.
The vehicle will have a core and core-plus profile and will target office properties and shopping centres in four countries, Czech Republic, Slovakia, Poland and Hungary. The fund, which will be active from 2011 and will have a seven-year life term, represents the third fund set up in partnership with Avestus, following the launch of the CSIA and Develon vehicles.
'As a result of the economic crisis, the real estate market in the Central Europe has bottomed out and is now showing signs of recovery and future growth,' said Sebastien Dejanovski of Mint Investments. 'Properties with an attractive combination of price, yield and potential for further income growth and capital appreciation are starting to appear on the market. Within the last six months, several new investors have approached us - from local and foreign institutions to large local private investors - all of which are interested in investing in quality properties generating stable income.'
He pointed to the current spread between prime commercial property yields and financing costs as one of the main reasons for the fund launch. 'This spread is close to the highest levels seen in Central Europe over the past decade,' Dejanovski added. The vehicle is expected to provide an annual net return of at least 14%.
Mint Investments manages a portfolio of income-producing and development assets with a value of over EUR 500 mln.
