VTB Capital, Deutsche Bank and SRV have launched VTBC-DB Real Estate Partners, a co-sponsored private equity fund focused on the Russian market. The target for the fund is €300m.
The fund will invest in prime real estate in Moscow, St. Petersburg and other major Russian cities. Investors in the fund include Scandinavian pension funds, Ilmarinen and Etera.
Finish Project management company, SRV, will also invest in the fund while providing management and construction services to ensure development procedures are in accordance with international standards.
President and global CEO of VTB Capital, Yuri Soloviev said: “The creation of the fund with international investor participation is a testament for the fact that western investors are positive on the prospects of the Russian market. It demonstrates the confidence international investors are gaining in the region.”
VTBC-DB Real Estate Partners is the second private equity fund launch in the past month. In May, mid-sized private equity firm Aurora Investment Advisors launched a new Russian-focused fund with a target value of £50m.