Project description
and objectives:
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The proposed project is an equity investment of up to USD 40 million or 20% of
the total capital of the Fund. The Fund will invest in institutional quality
property developments and income-producing real estate assets predominantly in
Moscow, St. Petersburg, and Kiev. Investments in other CIS countries and
regional centres will also be considered. The target portfolio is a
well-diversified mix of office, retail, industrial, residential – and to a
limited extent – hotel assets.
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Transition impact:
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The Fund will help promote the development of institutional grade properties.
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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 Fund will foster knowledge and skills transfer. JER Partners’ (“JER”)
outstanding experience and high standards will be replicated in the real
estate asset management sector in the CIS countries. JER’s and Alfa Capital
Partners’ (“ACP”) joint management of the Fund’s operations will help
demonstrate the importance of gathering an experienced team with extensive
track record and local market knowledge.
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The client:
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A special purpose vehicle, organised under the laws of the Cayman Islands,
managed jointly by JER and ACP. JER is a reputable real estate private equity
company, managing funds in the United States and Europe with a cumulative
capital of USD 2 billion. ACP is a Russian private equity and real estate
investment firm affiliated with the Alfa Group, one of Russia’s largest
financial and industrial groups. JER and Alfa will jointly invest USD 20
million in the Fund. The residual amount of up to USD 180 million will be
contributed by institutional investors from Europe, North America, the Middle
East as well as by EBRD.
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EBRD finance:
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20% of the Fund’s total equity up to USD 40 million.
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Total project cost:
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Up to USD 200 million.
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Environmental impact:
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Screened FI.
Due diligence has confirmed that the Fund Manager has the necessary commitment
and experience to implement the Bank’s environmental requirements. The Fund
will be required to implement the Bank’s Environmental Procedures for Property
Funds across all its operations to conduct environmental due diligence and
monitoring of each sub-project, to ensure that each sub-project complies with
relevant national and EU environmental, health and safety standards and
requirements and to submit annual reports on environmental, health and safety
issues 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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Jonathan Hodnett
JER Partners
Berkeley Square House
Berkeley
Square
London W1J 6BY
Richard Sobel
Alfa Capital Partners
7/2 Staraya Basmannaya
Moscow
105064
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EBRD contact:
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Philippe Mansion, Operation Leader: mansionp@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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