East Capital Explorer invests EUR 40m in new East Capital Russian Property Fund
- East Capital Explorer has decided to invest EUR 40m (corresponding to approximately SEK 372m) in the new East Capital Russian Property Fund
- The investment provides East Capital Explorer's shareholders with exposure to attractive retail real estate in fast growing regional cities in Russia
The fund will invest in shopping centres and other types of cash flow generating retail real estate that will gain from the strong domestic demand and continued growth in the retail market. The geographical focus is regional cities with more than 500,000 inhabitants, primarily in Russia but also in Ukraine and Kazakhstan.
Gert Tiivas, CEO East Capital Explorer said: ÂThe domestic consumption boom combined with a shortage of modern retail property in the region makes real estate one of our favorite sectors. This investment should provide our shareholders with exposure to attractive properties, unavailable to the mainstream investor.Â
The fund management will seek to actively work to improve the properties' commercial concepts, tenant mix and customer flows. The objective is to develop a well balanced portfolio of quality assets with respect to location, market and tenants, potential as well as risk-return. The fund's financial target is to achieve an unleveraged IRR above 15 percent. The fund is expected to be able to start its investment activities already during the summer 2008.
The East Capital Russian Property Fund is a closed-end fund for institutional and other qualified investors, structured as a Swedish limited liability company.
There is no subscription fee associated with East Capital Explorer's investment in the fund. Other terms are an annual management fee of 1 percent of the gross asset value of the fund and a profit sharing arrangement (investors 80 percent and East Capital 20 percent) above a hurdle rate of 10 percent and following a so called 50/50 catch-up.
Including this investment, East Capital Explorer has announced investments totaling EUR 242m (corresponding to EUR 2,250m).
Contact information:
Gert Tiivas, CEO East Capital Explorer +46 8 505 977 30
Louise Hedberg, Head of Communications/IR East Capital Explorer +46 8 505 977 20
Financial reporting calendar - East Capital Explorer:
- Monthly Net Asset Value report on the fifth working day after the end of each month
- Interim report 1 January - 30 June 2008 on 21 August 2008
- Interim report 1 January - 30 September 2008 on 13 November 2008
About East Capital Explorer - East Capital Explorer AB is a Swedish company, created with the specific aim of bringing unique investment opportunities in Eastern Europe to a broader investor base. The company invests mainly in East Capital's private equity and semi-public equity funds that provide exposure to companies not otherwise accessible via the local stock exchanges in Eastern Europe. East Capital Explorer targets fast growing sectors such as the power utilities, financial, retail and consumer goods and real estate sectors. East Capital Explorer has appointed East Capital to manage its investment activities. Since 9 November 2007, East Capital Explorer is listed on the OMX Nordic Exchange Stockholm, Mid Cap.
This information is disclosed in accordance with the Securities Markets Act, the Financial Instruments Trading Act or demands made in the exchange rules.