The EBRD has signed an equity investment amounting to the lower of
(i) EUR 100 million or
(ii) 30% of total capital commitments of Hines Russia & Poland Fund (the “Fund”), a closed-end investment fund established as a Luxembourg fonds commun de placement.
The Fund’s objective is to seek long-term capital appreciation through investments in institutional quality developments, re-developments, and income-producing real estate projects. The target investments of the Fund will be in office, residential, logistic/warehouses, retail and mixed-use projects in Russia and Poland (the “Region”). The Fund will also target distressed opportunities as they arise on the market.
The Project’s transition impact will stem from the following:
- Increasing competition and expanding private real estate equity markets, especially by supporting investments in regional cities and providing liquidity to the Region which should encourage participation of institutional equity investors in these markets and stimulate competition in the economy.
- Demonstration effect: The role of EBRD as an anchor investor was important in encouraging other investors to participate in the Fund. The successful closing of the Fund is expected to have a positive demonstration effect on other equity investors in emerging markets, by building broader confidence among potential investors to invest in Russia and Poland real estate.
- Setting standards. Hines is a global leader in sustainable property development and the Fund is therefore expected to introduce to the Region improved environmental standards and especially energy efficiency measures.
The Fund is managed by Hines R & P Management Company S.à r. l. (the “Management Company”), a limited liability company organized under the laws of Luxembourg.
Hines is a reputable international real estate firm established in 1957. Currently, the firm has a presence in more than 100 cities around the globe and it controls assets valued at approximately USD 22.9 billion.
The lower of (i) EUR 100 million equity or (ii) 30% of total Fund capital commitments.
The size of the Fund is about EUR 390 million.
The project was categorised “Financial Intermediary (FI)”- provision of financing via a financial intermediary in accordance with the 2008 Environmental and Social Policy and Performance Requirements (706KB - PDF) (PRs)
Due diligence confirmed that the Fund management has adequate environmental and social risk management capacities to comply with PR2 and 9 for the upcoming operation. The Fund should ensure each sub-project, at a minimum, complies with national environmental, health and safety and labour laws and, in EU member countries, EU standards. The Fund will be required to adhere to the EBRD's Environmental and Social Exclusion and Referral lists, and submit annual environmental and social reports to the Bank.
X. Simon Shen
Senior Managing Director
Tel: +1 713 966 2628
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