HB Reavis launches €165-million Central European real estate fund (SK)

HB Reavis Group, the leading Slovak-based real estate developer and investor active in Central Europe (CE), has launched its first real estate fund HB REAVIS CE REIF.

The Fund is a Luxembourg-based SICAV-SIF with core strategy, focusing on prime commercial properties in Central European countries (Slovakia, Czech Republic, Poland and Hungary). The Fund is managed through a Luxembourg-based investment management firm HB Reavis Investment Management.

"We see a post-crises comeback of commercial properties, while the economies of core CE countries are expected to achieve growth above the EU average. We therefore believe the time is right for us to launch a new business line of real estate investment management.

"Our management company is regulated by the Luxembourg authorities and the management team has experience with management of private equity funds in the UK," says Roman Karabelli, spokesperson of HB Reavis Group.

The core features of HB REAVIS CE REIF:

  • Semi open-ended SIF/SICAV whose investors are renowned institutions (pension funds, insurance companies, asset managers) as well as high net worth individuals
  • The Fund's seed portfolio consists of five modern, newly-built, fully-let commercial properties – two office blocks in Bratislava, one of the shopping malls developed under the HB Reavis Group's Aupark brand and two logistics parks – with total of more than 100,000 m² of gross leasable area and a market value of €165 million
  • All properties are fully leased to ca. 160 international and regional companies and financed by prime European banks
  • Expected total return for investors (net after all fees) is 11% p.a. of which approximately half is expected to be distributed to investors as a regular dividend
  • The Fund is regulated by the Luxembourg financial authority 'Commission de Surveillance du Secteur Financier'
  • HB Reavis Group also provides investors with a seven-year principal protection.

HB Reavis Investment Management expects to raise up to €100 million of equity commitments from institutional investors, high net worth individuals and family offices, allowing HB REAVIS CE REIF to execute further acquisitions of commercial properties mainly in Poland and the Czech Republic and bringing the total market value of the Fund's asset to ca. €330 million.

The Fund manager is also preparing a launch of follow-on real estate fund for qualified institutional investors with broader Central European focus by the end of this year.

Source: HB Reavis

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