Heitman Eastern European Property Fund

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 40440

Status Signed

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 40440

Status Signed

Location

Regional

Business Sector

Real Estate

Notice Type

Private

Environmental Category

Approval Date

29 Jul 2009

Disclosure date

12 Jun 2009

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 Heitman European Property Partners IV (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 Central and Eastern Europe as well as Russia and Ukraine (“the Region”), with aggregate capital commitments of up to EUR 600 million.

Transition Impact

The Fund will add crucial liquidity to the property market in its target region, creating buyer demand. Since the beginning of the current financial and economic crisis no notable property investment transactions have occurred; investors are still establishing a view on market stabilisation and future prospects. With the volume of capital the Fund has at its disposal and Heitman's in-depth knowledge of the market, the Sponsor has the potential to play a catalyst role to re-open the acquisition and development market in the Bank's countries of operation, and in doing so creating a strong counter-action against the credit crisis.

Development of new assets will benefit the primary property markets in the target region not only by adding extra stock to the market but also by providing investment grade assets and thus setting a new standard in terms of quality, especially in secondary cities. Furthermore, the acquisition of standing assets serves directly to increase the breadth and depth of secondary property markets.
The project will also assist and promote the development and construction of real estate assets to meet the requirements of international institutional investors, creating important backward linkages to joint venture partners and local sub-contractors, particularly with regard to active asset management techniques.

The Client

A special purpose vehicle, organised under the laws of Luxembourg managed by Heitman International. Heitman is a reputable multi-national real estate investment manager, managing funds in the United States, Europe and Asia with USD 19.6 billion in assets under management. Heitman will invest EUR 15.5 million in the Fund. The residual amount of up to EUR 584.5 million will be contributed by institutional investors from Europe and North America, as well as by EBRD.

EBRD Finance

EUR 75 million equity commitment.

Project Cost

EUR 600 million aggregate equity commitments.

Environmental Impact

Screened FI. Heitman is an existing client and already implementing the Bank’s Environmental Procedures for Property Funds. For the proposed operation, Heitman is required to continue to implement adequate environmental and social risk management procedures in accordance with the Bank's Performance Requirement (PR)2 and 9 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

12 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.

Our story

How we invest in changing lives

What we offer for businesses

Search