Project description
and objectives:
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The proposed project is an equity investment into HRPS 1, LLC (the “Fund”), an
investment vehicle pursuing long term capital appreciation through real estate
investments. The Fund will be established for the purpose of developing,
reconstructing, acquiring, owning and managing real estate property in Russia
and Ukraine (“the Region”), with aggregate capital commitments of up to USD
150 million.
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Transition impact:
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The key objective of the Bank’s involvement lies in the support of a real
estate fund which will concentrate its activity on real estate markets in
Russia and Ukraine (the Region) focusing on development projects rather than
acquisitions.
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The Fund will foster the development of the primary and secondary real estate
markets by developing institutional quality properties which are still in
limited supply in the Region. This will contribute to much needed liquidity
and encourage equity investors to expand their participation in the real
estate sector in the Region.
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In part thanks to EBRD’s participation, the setting up of the Fund will help
introduce new investors to the CIS real estate market.
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The client:
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A special purpose vehicle, organised under the laws of the Luxembourg managed
by Heitman International. Heitman is a reputable multi-national real estate
investment management firm, managing funds in the United States, Europe and
Asia with USD 18.4 billion in assets under management. Heitman will invest USD
5.0 million in the Fund. The residual amount of up to USD 145.0 million will
be contributed by institutional investors from Europe and North America, as
well as by EBRD.
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EBRD finance:
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30% of the Fund’s total equity up to USD 45 million.
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Total project cost:
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USD 150 million.
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Environmental impact:
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Screened FI. Heitman is an existing client and already implementing the
Bank’s Environmental Procedures for Property Funds. Environmental reporting
on the preceding Fund activities in Central Europe has been satisfactory to
date, and the Bank plants to carry out a monitoring visit to the existing
portfolio prior to the signing. The Fund Management must continue to
implement the Bank’s Environmental Procedures for Property Funds for the
proposed operation including the submission of an annual environmental report
to the Bank.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Gordon Black, Heitman International
191 North Wacker Drive,
Chicago, IL 60606
Tel; +1 312 855 5700
E-mail: Gordon.Black@Heitman.com
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EBRD contact:
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Thomas Mueller, Operation Leader: muellert@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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