Revetas Capital Advisors has held the first closing of its Central and Eastern European (CEE) focused real estate fund, Revetas Capital Recovery Fund I.
The fund has made three initial investments in Hungary and Poland, and formed a partnership with the private equity investor JRJ Group.
Having raised over half of its target capital, the fund has started its investment programme by acquiring in Hungary two nationwide portfolios comprising 12 retail neighbourhood shopping malls totalling over 45,000 sq m, and in Poland a 29,000 sq m mixed use office building in Krakow. The acquisitions involved a restructuring of existing debt held by four international banks active in the region. The values of the individual acquisitions are confidential.
Revetas expects to hold a second and final closing of the fund in Q2/Q3 2014 together with a number of acquisitions currently under consideration.
JRJ's involvement with Revetas combines both financial investment in the firm and infrastructure/ administrative support, including investor relations, fundraising, compliance, and other back-office functions. It is intended to help accelerate the growth of Revetas, which was founded in late 2011 by its managing director, Eric Assimakopoulos.
Assimakopoulos says: “These are very significant steps for Revetas. We are well on our way towards achieving our first fund's target, we have acquired some very attractive initial properties, and we have attracted a blue-chip new strategic partner. These moves validate our decision to launch a specialist firm capable of taking advantage of the substantial pool of over-leveraged and underperforming real estate assets in the CEE region. For many institutions who control such properties, Revetas' expertise represents an increasingly attractive solution to the structural problems in the region's real estate market left over from the financial crisis.”
Revetas is based in London and is regulated by the UK Financial Conduct Authority (FCA), while the fund is regulated by the Guernsey Financial Services Commission (GFSC) and is a qualifying investor fund. Revetas has offices in UK (London), Slovakia (Bratislava), Romania (Bucharest), Austria (Vienna) and Poland (Krakow).
The fund is targeting leading banks, investors and real estate owners in the CEE region to recapitalise, restructure, and de-lever their distressed real estate assets by combining access to capital with a management team which has been active in the region for over a decade. Typically the fund aims to acquire assets which are in need both of active asset management, and additional capital for building and tenant improvements.