23 May 2013

Fleming Family & Partners, Garber Hannam divest Russia real estate fund

Asset management group Fleming Family & Partners (FF&P) and Russian investment firm Garber Hannam & Partners (GHP) have completed a final distribution to the shareholders of FF&P Russia Real Estate (RREL).

FF&P sold its Russian business, including the real estate management team which advised RREL, to GHP in 2012.

The payment means RREL has now returned over $213m to shareholders. UK investors achieved a 2.1 times return on their initial investment, according to FF&P.

RREL was launched by FF&P in 2003 as the first institutional fund focused on Russian commercial real estate investments. RREL acquired various commercial real estate assets in Moscow including the Gogolevsky 11 and Lesnaya 3 office centres, and warehouse assets at Sholokhovo and Tomilino. These were sold to international and domestic buyers including Hines Global REIT and Raven Russia.

Richard Hill, co-head of FF&P Advisory, said “We are delighted with the outcome for our clients against the backdrop of an extremely difficult global market over the last few years and the challenges presented by operating in a complex real estate market. This is testament to the expertise, commitment and energy of the real estate team in Moscow combined with the guidance of the company’s experienced board of directors throughout the investment cycle.”

GHP Real Estate continues to manage RRED, which was launched by FF&P in 2007 with $153m of capital. RRED has acquired two development projects in St Petersburg, the Electro office centre and the Trinity mixed use complex both of which are fully financed and under construction, as well as a warehouse project in Tomilino, close to Moscow.

RREDs shareholders principally comprise international private equity companies, sovereign wealth funds and clients of FF&P Asset Management.

Source:Alt Assets 22.05.2013