June 28. 2006
Evli launched Finlands first real estate fund investing in Russia
Evli and Catella launch their second fund together
Evli has launched a new real estate equity fund, EPI (Evli Property Investments) Russia I Ky, that will invest in the Russian real estate markets. The fund is the first of its kind in Finland and also globally
one of the few funds investing solely in the Russian real estate market. The funds investment strategy is to acquire and develop commercial properties in the St. Petersburg and Moscow regions.
Russia is a challenging market from the perspective of a real estate investor, but at the same time very interesting due to its significant potential. There is great demand for commercial properties that respond to modern standards, and as vacant properties are scarce at the moment, rents are remarkably high. That is why we will be focusing especially on property development in addition to acquisitions, explains Petteri Nurminen, Managing Director of Evli Property Investments Oy.
The target of the closed-end real estate equity fund EPI Russia I is to acquire a real estate portfolio of 300 400 million euros, from which the equity from institutional investors will account for 150 million euros. The funds two anchor investors Varma Mutual Pension Insurance Company and The Local Government Pensions Institution have given their investment commitments on 22 June 2006, which corresponds to approximately half of the targeted equity. The rest of the equity will be gathered from Finnish and international investors during the fall.
The fund is fully operational already with the anchor investor commitments, but in addition to investment activities, we will continue selling the fund until we reach the designated total equity finance amount of 150 million euros, Nurminen continues.
The fund offers professional investors an opportunity to take part in the development of Russias real estate markets. Evli Property Investments and the funds portfolio manager Catella Property Oy have established a management company EPI Russia Partners I Oy to manage the real estate portfolio on behalf of the investors. The company will also establish a local office in St. Petersburg during the year.
Evli and Catella started Finlands first real estate equity fund EPI Baltic I, which invests in the Baltic real estate markets, in April 2005. The fund was closed in early December when its equity finance reached the designated EUR 50 million maximum total amount. With this equity capital, the target size of the funds real estate portfolio at the end of the investment period will be around EUR 150 million. The fund has so far made two real estate acquisitions, one in Estonia and one in Lithuania.
Petteri Nurminen, Managing Director, Evli Property Investments
tel. +358 9 4766 9271
Timo Nurminen, Managing Director, Catella
tel. +258 10 5220 200
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