Metropolitan Properties is a three party joint venture between the Marbleton Property Fund ("the Fund"), Alfa Bank Ukraine and Griffin Investment Partners ("GIP") to acquire high street properties in secondary cities in Ukraine. The strategy is to build up a portfolio of high yielding assets and add additional value through active asset management, i.e. repositioning, refurbishment, re-tenanting, etc. Each of the partners has committed 10 million in equity capital to the joint venture.
Marbleton Property Fund is a US$321 million private equity real estate fund, co-sponsored by JER Partners and Alfa Capital Partners with a focus on real estate investments across all property sectors in Russia, the Ukraine and other CIS countries. The fund closed in June 2007.
Griffin Investment Partners has successfully implemented this strategy in Poland and is looking to expand into Ukraine and other CIS countries. The joint venture expects to acquire its first assets in the first quarter of 2008.
Malcolm Le May, President Europe at JER Partners, commented: "We are delighted to be creating this platform partnering with GIP's proven business model and Alfa Bank Ukraine's local network of contacts in order to target the Ukrainian property market."
Richard Sobel, Chief Executive Officer of Alfa Capital Partners, stated: "We see strong demand by retailers who are targeting the dynamic consumers throughout Ukraine and we look forward to working with local and international retailers as they grow and expand their businesses, particularly in Ukraine's regional cities."
Marcin Halicki, Managing Partner of Griffin Investment Partners, said: "For the last 15 years Partners of GIP were actively investing into private equity and real estate projects in Poland consistently delivering high return to its investors. We have set the stage for growth into region, and with our strategy and execution strength, I have a clear vision of realizing even higher returns from taking advantage of the opportunities in the Central and Eastern markets. Teaming up with Marbleton Property Fund and Alfa Bank gives us a level of comfort to aggressively expand the business and I foresee that the size of our venture will grow beyond our initial expectations."
Source: Headland
