Heitman, Israeli Firm Form $300M Housing JV

WARSAW-Heitman has formed a joint venture with a subsidiary of Israel-based Engel Resources and Development Ltd. to develop in excess of 5,000 for-sale residential units in Central Europe on behalf of the fund Heitman Central Europe Property Partners II.

Engel owned and entitled the land for the projects, and the Heitman fund essentially bought a 50% interest in the projects. The estimated $300-million joint venture will develop the for-sale apartments, townhomes and apartments on seven sites in capital cities and secondary markets across the Czech Republic, Hungary and Poland. The first phases of the developments are scheduled to be completed by 2005/2006.

Chicago-based Heitman is one of the largest real estate investment managers in the US with approximately $11.5 billion in assets under management. Engel is a developer of residential and commercial properties. Heitman says Engel’s previous three projects in Prague and Budapest were 98% sold out within “a very short time frame.”