Morgan Stanley Real Estate's Special Situations Fund III ('Special Situations') today announced that it has acquired a stake of approximately 10% in RosEuroDevelopment ('RED'), a real estate development company that is active in the retail, logistics, office and residential sectors in Russia. Special Situations made this investment through a dedicated capital increase.
This transaction is Morgan Stanley Real Estate's first investment in Russia. Morgan Stanley has had a continuous investment banking presence in Russia since 1994.
Commenting on the transaction, John Carrafiell, Global Co-Head of Morgan Stanley Real Estate, said: "Morgan Stanley Real Estate has a proven track record in identifying opportunities in exciting new markets, having already made pioneering investments in China, India and Turkey. We believe Russia's strong economic growth, and its fundamental undersupply of quality real estate, provide an attractive opportunity to expand our investment platform."
Mr. Carrafiell added: "RED is a fast-growing and entrepreneurial company with an outstanding track record of organic growth. We are excited at the prospect of contributing to its future success through this capital injection, which will be used to invest in several attractive projects in Moscow and other parts of Russia"
Source: Morgan Stanley