Revetas Capital Advisors, a specialist real estate investment advisor focused on over-leveraged, distressed and under-performing opportunities in Central and Eastern Europe, has reached a first close of its CEE-focused real estate fund, Revetas Capital Recovery Fund I L.P. The fund has also made three initial investments in Hungary and Poland and a strategic new partnership with the private equity investor, JRJ Group.
Revetas Capital Advisors LLP (‘Revetas’), a specialist real estate investment advisor focused on over-leveraged, distressed and under-performing opportunities in Central and Eastern Europe, announces today (Wed) the successful first closing of its CEE-focused real estate fund, Revetas Capital Recovery Fund I L.P. (‘the Fund’), and three initial investments by the Fund in Hungary and Poland, and a strategic new partnership with the private equity investor, JRJ Group (‘JRJ’).
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 m2, and in Poland a 29,000 m2 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.
Commenting on today’s announcements, Mr. Assimakopoulos said: “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 recapitalize, restructure, and de-lever their distressed real estate assets by combining its strong access to capital with a highly-experienced 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.
Notes to Editors:
1. Revetas is led by Eric Assimakopoulos, who has over 20 years’ real estate investment and development experience across the US, UK and Europe. Its Chief Financial Officer is Ian Jones, whose earlier career includes senior finance roles at several real estate investment groups including Topland, Antler and GHP.
2. Revetas’ Advisory Board includes Keith Breslauer, founder of Patron Capital; Jeremy Isaacs, founder of JRJ Group; and Markus Leininger, formerly Head of CEE at EuroHypo AG, a Commerzbank subsidiary.
3. Revetas currently employs staff across its CEE region offices, all of whom have career backgrounds in banking, real estate investment, asset and property management.
4. JRJ Group is a London-based international private equity firm with a core focus on the financial services sector in Europe. The company was founded by Jeremy Isaacs and Roger Nagioff, professionals with decades of senior experience in global finance.