Morgan Stanley Real Estate said it has bought a stake in Eastern European developer Adama Holding Public. The real estate arm of the US investment bank did not disclose the size of the stake but said the transaction was made through its Special Situations Fund III. Adama is a private company active in markets across Central & Eastern Europe. The company has corporate bonds listed on Tel Aviv Stock Exchange.
Morgan Stanley Real Estate said it has bought a stake in Eastern European developer Adama Holding Public. The real estate arm of the US investment bank did not disclose the size of the stake but said the transaction was made through its Special Situations Fund III. Adama is a private company active in markets across Central & Eastern Europe. The company has corporate bonds listed on Tel Aviv Stock Exchange.
Existing shareholders Lehman Brothers and Austrian developer Immoeast also increased their stake in the company which raised over EUR 100 mln of equity. The money will be used to fund expansion across its core markets of Ukraine, Turkey, and especially Romania.
Adama's other shareholders include asset manager Tiger Global Management, and the Jesselson family’s private investment vehicle Romre.
'We believe that Romania's strong demand for quality real estate provides an attractive opportunity to expand our investment platform in central and eastern Europe,' said John Carrafiell, global co-head of Morgan Stanley's property investment.
Adama was founded in Bucharest in mid-2004 by entrepreneurs David Flusberg, Dvir Cohen Hoshen and Isaac Cohen Hoshen. It operates through subsidiaries and development partnerships in Romania, Moldova, Ukraine, Croatia and Turkey.
Flusberg, Adama’s president, said: 'This transaction, Adama’s fourth private placement in the past two and half years, significantly increases the company’s ability to expand its portfolio of high return development projects across target markets.'
