Salans has advised VTB Capital, Investment Business of VTB Group (the second largest Russian bank), on the establishment of a major new investment fund. The fund, which is co-sponsored by VTB Capital and the Deutsche Bank Commercial Real Estate Group, will focus on real estate developments and acquisitions and will invest mainly in office, retail and hotel projects as well as in the construction of high quality residential projects in Moscow and in St. Petersburg.
A unique feature of the project is that the investment manager has entered into a framework agreement with the leading Finnish project management and construction company, SRV to develop the fund's projects. Scandinavian pension funds Ilmarinen and Etera are among the first limited partners in the fund.
London partner Peter Hughes led the Salans team on the establishment of the fund and on the co-sponsoring arrangements with Deutsche Bank. Peter commented: "The successful launch of this fund demonstrates that, with the right sponsors and the right management team, international investors still have confidence in the potential for long-term growth in the Russian real estate market."
Victor Makshantsev, Global Head of the Infrastructure and Real Estate Investment Funds Group of VTB Capital commented: "Salans' cross-border strengths made it a perfect partner for us in this major real estate fund initiative. They worked tirelessly to ensure the deal's success. We look forward to working together and deepening our relationship."