Heitman Russia and Ukraine Property Partners

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 37931

Status Complete

Location

Regional

Business Sector

Real Estate

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 37931

Status Complete

Location

Regional

Business Sector

Real Estate

Notice Type

Private

Environmental Category

Approval Date

24 Jul 2007

Disclosure date

12 Apr 2007

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

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.

Transition Impact

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.
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.
In part thanks to EBRD’s participation, the setting up of the Fund will help introduce new investors to the CIS real estate market.

The Client

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.

EBRD Finance

30% of the Fund’s total equity up to USD 45 million.

Project Cost

USD 150 million.

Environmental Impact

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.

Technical Cooperation

None.

Company Contact

Gordon Black, Heitman International

191 North Wacker Drive,
Chicago, IL 60606

Tel; +1 312 855 5700

E-mail: Gordon.Black@Heitman.com

Transition impact

ETI Score:60

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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