- The key objective of the Bank's involvement in the project is the development of the market for retail investment in Central and Eastern European property by supporting the introduction of a presently unavailable investment instrument. The fund will initially focus on attracting conservative institutional investors willing to commit their funds to investment into first class properties in the Region which will constitute the fund's portfolio. The stable performance of the fund's portfolio is expected to attract retail investors to the fund, thereby replacing the institutional investors.
- The fund's legal structure as a strictly regulated Luxembourg domiciled SICAV represents an instrument well known to private retail investors. The mobilisation of private individual risk capital to invest in Central European real estate is a key element to realise pre-structured exit options pursued by the fund as a preferred exit route for the institutional investors.
- The participation of the EBRD will also help to attract new institutional investors to the Region in the initial phase of the fund.
- In addition, the fund will foster the further development of the real estate secondary market of the Region. When acquiring income producing properties, the fund will create an institutional take-out market for development assets which still only exists fragmentally in the Region. This will provide much needed liquidity and give confidence to developers and equity investors, thus encouraging their continued participation in the primary and secondary real estate markets.
- The Bank's and Generali's participation in the fund will create a high demonstration effect to the future private investors market. The Bank's long standing experience and successful track record as equity investor in the property market of the Region, as well as the Bank's vigorous corporate governance policy, will raise trust and confidence of private investors to invest in Central Europe.
Mr. Barry McGowan
Chief Investment Officer
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