MOSCOW-Houston-based Hines has formed a fund to invest more than $1.1 billion into properties in Russia and Poland. The Hines Russia & Poland Fund, which will be based in Luxembourg, has already allocated equity to two outlet malls and a big box development in St. Petersburg and Moscow.

This is the fourth Hines fund to invest in the two countries. The fund will be led by X. Simon Chen, and locally by Lee Timmins in Russia and Mietek Godzisz in Poland. The company currently manages $2 billion of property in Russia and Poland.

Timmins said in a statement today that retail space is in high demand in Russia. “In addition to our successful office developments, we are very excited about the development prospects in Russia in the retail, warehousing and residential property sectors, which take advantage of the growth of the Russian middle class and the rapidly growing consumer spending power,” he said.