Project summary document

Project description
and objectives:

The proposed project is an equity investment in Absolute Real Estate Opportunities Fund Ltd. (the “Fund”), an investment vehicle pursuing long term capital appreciation through equity or quasi-equity investments. The proceeds of the investment will be applied by the Fund for the purpose of acquiring, developing, renovating, reconstructing, owning and managing real estate property primarily in Romania, Bulgaria, Ukraine, and Moldova but with the ability to make strategic investments in Serbia, Croatia, FYR Macedonia, Kazakhstan, Russia, Belarus, Georgia, and Montenegro (“the Region”).

Transition impact:

The strategic input of the Bank is essential in various aspects:

• 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 Romania, Ukraine, and Moldova, focusing on development projects.

• If investing through acquisitions, the Fund will support the creation of institutional secondary market for existing properties which currently is almost non-existent in most of the Region.

• EBRD’s catalytic role will support the development of the secondary markets and will provide a hands-on support for the restructuring and/or development of the corporate governance of investee companies. This will provide much needed liquidity and encourage equity investors to expand their participation in the real estate sector in the Region.

The client:

An investment vehicle, organised under the laws of the Cayman Islands, managed by Absolute Capital Management Property Ltd., an alternative asset manager set up in July 2007 by Absolute Capital Management Holding Ltd, a leading asset management company authorised and regulated by the Financial Services Authority.

EBRD finance:

Equity investment of up to the lower of EUR 50 million or 25% of the total shares.

Total project cost:

Up to EUR 300 million.

Environmental impact:

Screened FI. The Fund will be required to adopt and implement the Bank's Environmental Procedures for Multi-Property Development which will require the Facility to comply, among other things, at a minimum, with the health, safety, labour and environmental regulations and standards applicable in the country where the investment is situated as well as good international practices.

Technical
cooperation:

None.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact:

Ms. Janet Woo
Principal Banker
EBRD
One Exchange Square
London EC2A 2JN
Tel. +44.207.338.6720
Email: wooj@ebrd.com

EBRD contact:

Janet Woo, Operation Leader: wooj@ebrd.com

Business opportunities:

For business opportunities or procurement, contact the client company.

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com