Morgan Stanley Real Estate's Special Situations Fund III ("Special Situations") today announced that it has acquired a stake of approximately 15 percent in RGI International Limited ("RGI"), a real estate development company that is active in the upscale residential, retail and commercial sectors in central Moscow, Russia. Special Situations made this investment through a dedicated capital increase by RGI. This transaction is Morgan Stanley Real Estate's second investment in Russia.
Commenting on the transaction, John Carrafiell, Global Co-Head of Morgan Stanley Real Estate, said: "The RGI investment illustrates Morgan Stanley Real Estate's commitment and proven ability to deploy capital in Emerging Markets. RGI offers Morgan Stanley Real Estate an attractive entry into the Russian real estate market with an emphasis on central Moscow, a market characterized by fundamental undersupply of quality real estate." Mr. Carrafiell added: "RGI 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."
Jakob Kriesler, Chairman of RGI said: "In order to leverage our leading position in the rapidly growing high-end Moscow real estate market, we have looked for a western strategic partner. Morgan Stanley's Real Estate Special Situations Fund was our first choice. We believe that Morgan Stanley's real estate insight coupled with its leading western financial market position will be a great addition to our current strengths."
Source: Morgan Stanley