Heitman Russia and Ukraine Property Partners

Location:

Regional

Project number:

37931

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

FI

Approval date:

24 Jul 2007

Status:

Complete

PSD disclosed:

12 Apr 2007

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

 

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

General enquiries

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