Moscow. December 17. Sistema has created an investment company Sistema Capital Partners (SCP) for the purpose of investing in liquid real estate in Russia and abroad. The first transaction SCP was organized in Germany, investing “System” and its partners in the commercial real estate worth 125 million euros.
SCP organized a club deal together with the German operational partner. It is more than 60% financed from borrowed funds. Partners and the ratio of funds invested were not disclosed.
The acquired portfolio includes 56,3 thousand square meters of space occupied by retailers C&A, H&M, Peek & Cloppenburg, REWE, Rossmann and Saturn. The average percentage loading space to 97%. They are in 21 cities – Bremen, Schwerin, Flensburg, Mönchengladbach, Gelsenkirchen, Minden, Essen, Gotha, Hagen and others.
In the first quarter will be an optional purchase, promises SCP.
The company has assembled a high quality portfolio of assets in medium-sized cities, while institutional investors look primarily to the “big seven” major German cities, the report says. The profitability of retail real estate in these cities is higher than in areas with similar tenants in medium-sized cities, however, the portfolio SCP eliminates the price gap due to its scale, says the company.
As the head of the SCP, Marjorie Brabe-Friel, the company aims for a four-year cycle of investment.
Sistema Capital Partners will invest Sistema, as well as institutional and private investors from all over the world in real estate. The transaction will be partially funded by “the System” and be offered to other investors to participate on a club model.
The Board of Directors of Sistema Capital Partners (based in Luxembourg) is headed by the first Vice-President of “System” Felix Yevtushenkov. The Board also includes the AFK Manager Viktor Cherkasky, managing the Luxembourg subsidiary “System” Ecu Gest Emil Wirz, Director of Quantum Potes, Luxembourg Timothy Fenwick and Brabe-Friel.
Managers previously worked at Apex Capital Partners of Luxembourg and the Arista Fund SICAV-SIF, managed real estate in Moscow, in “System-gals” – the former “daughter” AFK, funds MGPA and BPTAM. Senior advisers act of Sistema Capital Partners oil and gas investor Stephen Arditti and founder of the consulting company High Beacon David Spector.