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Realkapital Partners and Cushman & Wakefield Residential launch Central and Eastern Europe Reisdential at MIPIM
13 Mar, 2008, London
Cushman & Wakefield Residential has been instructed as strategic real estate partner for
Realkapital Partners’ new CEE Residential Fund launchingat MIPIM, Cannes March 11-14.
Realkapital is launching the CEE Residential Fund in response to strong demand driving an overhaul of existing housing stock across the Central and Eastern European region, and is looking to raise €200 million, with a first closing in April 2008. The fund will primarily invest in major cities and growth centres in Russia, Poland, Slovakia and Romania, but will look for projects across the region on an opportunistic basis. These regions have been identified because of increasing consumer wealth, the migration of people from rural to urban areas and a significant amount of old residential stock needing to be replaced due to dilapidation and size (more than 10 sq m below Western European standards).
Realkapital Partners will use Cushman & Wakefield Residential to source investments and investors, advise on transactions and help promote the fund. Cushman & Wakefield Residential will use its investment expertise and contacts with developers, which are accessed through its extensive network of local offices across the whole of Central and Eastern Europe.
The CEE Residential Fund is unique in that it places emphasis on development in order that investors benefit from the development margins and are not entirely dependant on market conditions. Realkapital Partners has pulled together an exemplary network of strategic international partners and local development partners, as well as its own experienced fund managers. Combined, the network of partners provides the expertise and experience in all stages required to deliver a high return to investors.
Tore Borthen, Managing Partner of Realkapital Partners, says: “We are very enthusiastic about offering this unique investment opportunity to both institutional and private investors. I am fascinated by the possibility we have to help a new generation of Europeans get a better home. We strongly believe that combining the unique research and market knowledge of Cushman & Wakefield Residential with the quality work of our local development partners will allow us to deliver high quality homes with a profitable margin. We see this fund as an opportunity for investors to benefit from high returns with moderate risk.’’
Andrew Williams, Managing Director of Cushman & Wakefield Residential says: “We are very excited to be working with Realkapital Partners on promoting their CEE Residential Fund. Our industry-leading network of wholly-owned offices across the Central and Eastern European region, as well as our expertise in residential opportunity and investment-sourcing, means we are perfectly placed to advise Realkapital Partners and help make this fund a success.’’