Kulczyk Silverstein Properties establishes institutional real estate investment management platform (EU)

Kulczyk Silverstein Properties (KSP), an international investment and development firm, a joint venture between Kulczyk Real Estate Holding and Silverstein Properties, establishes an institutional real estate investment management platform.

KSP together with investment team led by Otis Spencer and Dennis Dart establishes KSP Real Estate Investment Management (KSP REIM), which intends to be a market leader in Central and Eastern Europe.

The new entity intends to raise between €200 to €300 mln of equity for investments in the highest class properties as well as in projects which value can be increased through regeneration, renewal and repositioning projects.

• KSP REIM's objective is to become a market leader and the preeminent real estate management platform for investors seeking exposure to the CEE region
• The company is managed by an international team of recognized fiduciaries with a track record of doing business in the CEE
• €200-300 mln is the target volume for the initial fund to be raised over the next two years
• AUM in excess of €1.5 bln – the gross value of assets KSP REIM intends to manage after five years
• KSP REIM will initially pursue office, retail and warehouse/logistic investment opportunities in Poland and the Czech Republic generating net returns in excess of 12% over a three to five year hold period
• The Company will focus on investments demanding renovations, rebuild or repositioning including buildings with a potential to obtain ecological certificates

KSP REIM will launch and manage Luxembourg regulated closed-end funds. The company will focus on CEE region which is characterized by a strong potential of growth and increasing liquidity in the commercial real estate market.

According to Cushman & Wakefield in 2011, €6 bln (approx. PLN 25 bln) was invested in the commercial real estate market in Poland, the Czech Republic, Romania, Slovakia and Hungary, which is more than two times invested in a previous year (€2.9 bln, approx. PLN 12 bln).

Over the next two years, KSP REIM intends to raise €200 - 300 mln of equity from investors and to invest in commercial properties in capital and secondary cities in Poland and the Czech Republic. The first closing of the Company's initial fund is planned for mid-2013. Within five years the value of assets under management is expected to grow to more than €1.5 bln (approx. PLN 6.8 mld).

KSP REIM's funds are intended for institutional investors such as pension funds, insurance companies and sovereign wealth entities.

"We are entering the market with a great potential. We want to become a leading company in CEE region. International team of experienced professionals combined with competences of Silverstein Properties, one of America's leading developers, and investment know-how of Kulczyk Investment Group have already put us in the first world league" – says Piotr Krawczynski, board member of KSP.

Source: Kulczyk Silverstein Properties

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