Russian Developer Fund

Location:

Regional

Project number:

38566

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

FI

Target board date:

22 Jan 2008

Status:

Signed

PSD disclosed:

17 Dec 2007

Project Description

The proposed project is an equity investment into Russia Development Fund (“the Fund”), an investment vehicle pursuing long-term capital appreciation through investments in real estate developers and specific real estate projects in Russia, Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Ukraine, and Uzbekistan.

The Fund will be organised as a master fund with two investment portfolios. The first Portfolio will be invested into private equity style investments in real estate developers in Russia and the CIS (the “Developer Portfolio”) and the second portfolio will be invested into specific real estate project investments (the “Project Portfolio”).

Another leading institutional investor in Russian real estate will be a major investor in the Fund.

Transition Impact

The strategic input of the Bank is essential in various aspects:


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, Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Ukraine, and Uzbekistan.
EBRD’s catalyst role will support the development of the secondary markets and will provide a hands-on support for the restructuring and/or development of the corporate governance of investee companies. This will provide much needed liquidity and encourage equity investors to expand their participation in the real estate sector in the Region.

The Client

A special purpose vehicle, the Russian Developer Fund, organised under the laws of the Cayman Islands and managed by IMG Partners Ltd (fund management company with a solid track of private equity investments in Russia).

EBRD Finance

20% of the Fund’s total equity up to EUR 75 million.

Project Cost

Up to EUR 450 million.

Environmental Impact

Screened FI. The Client is required to implement the Bank’s Environmental Procedures for Equity Funds for the Developer Sub-Fund, and Environmental Procedures for Property Funds for the Project Sub-Fund including adequate environmental due diligence and monitoring for each sub-project and submission of Annual Environmental Reports to the Bank.

Technical Cooperation

None.

Company Contact

Ms. Janet Woo
Principal Banker
EBRD
One Exchange Square
London EC2A 2JN
Tel. +44.207.338.6720
Email: wooj@ebrd.com

 

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.