Search
 

Heitman Scouting Central European Properties

CHICAGO-The institutional investment services firm has just closed a $525 million Central European fund, which executives say was 30% oversubscribed. Among the Heitman Central European Property Fund's investors are GE Capital, EBRD and the Government of Singapore Investment Corp., all of whom are expecting annual cash returns of around 11%.

By Ted Jackson | Updated on October 23, 2000

CHICAGO-After closing its $525 million Heitman Central European Property Fund, Heitman International–the international investment arm of locally based Heitman Financial–is busy scouting properties in Hungary, Poland and Czechoslovakia. The fund is working on a couple of developments in Prague and Warsaw with Golub Europe, the European development arm of local developer Golub & Co.

“We already have about $275 million of projects under contract for the fund,” says Stephen Perlmutter, president of Heitman International and a member of the fund’s board. “We are working on two office projects in Warsaw and Prague that will cost a total of $160 million with financing. Golub Europe is developing the buildings, which will have a total of between 200,000-sf and 300,000-sf of space.”

Chris Merrill, Heitman’s EVP based in London, says the fund will be about 60% to 80% invested in existing Central European properties, which Heitman believes will offer superior returns relative to Western Europe. “The returns are about 300 basis points to 400 basis higher and we believe this is more than the relative risk profile of these countries warrants. We expect annual cash returns in the neighborhood of 11% for the fund.” Mr. Perlmutter points out that all the countries that the fund has targeted for investment will soon become full members of the European Community and all have shown a strong commitment to continued implementation of market reforms.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.