FF&P Completes Successful Exit for Investors

Fleming Family & Partners and Garber Hannam & Partners Limited have announced announce a final distribution to the shareholders of FF&P Russia Real Estate Limited. The payment means RREL has now returned over $213 million to shareholders, including international private equity companies and clients of FF&P Asset Management.

PRESS RELEASE

Fleming Family & Partners (“FF&P”) and Garber Hannam & Partners Limited (“GHP”) are pleased to announce a final distribution to the shareholders of FF&P Russia Real Estate Limited (“RREL”).

The payment means RREL has now returned over $213 million to shareholders, including international private equity companies and clients of FF&P Asset Management. UK investors achieved a 2.1x return on their initial investment which sets RREL apart from most other Russian-based commercial real estate vehicles, in terms of returns.

RREL was launched by FF&P in 2003 as the first institutional fund focused on Russian commercial real estate investments. RREL acquired various commercial real estate assets in Moscow including the Gogolevsky 11 and Lesnaya 3 office centres, and warehouse assets at Sholokhovo and Tomilino. These were sold to international and domestic buyers including Hines Global REIT and Raven Russia plc.

FF&P sold its Russian business, including the real estate management team which advised RREL, to GHP in 2012.

Surviving the global financial crisis

RREL operated successfully throughout the difficult market conditions created by the global financial crisis. Throughout this period, its assets remained fully-leased to a strong international tenant base and held up their value. This meant that, despite the challenges posed by the global credit crunch, the team nevertheless succeeded in securing several refinancing facilities for the assets with international banks.

Oleg Myshkin, Managing Partner at GHP Real Estate noted that RREL is one of very few vehicles in the Russian property market to have completed the full investment cycle and returned significant profits to its shareholders. He attributed this success to the strong, multi-disciplinary team at GHP which has built significant experience and expertise in institutional management, over the course of advising RREL and its sister company, FF&P Russia Real Estate Development Limited (“RRED”).

On behalf of FF&P, Richard Hill, co-head of FF&P Advisory, said “We are delighted with the outcome for our clients against the backdrop of an extremely difficult global market over the last few years and the challenges presented by operating in a complex real estate market. This is testament to the expertise, commitment and energy of the real estate team in Moscow combined with the guidance of the company’s experienced board of directors throughout the investment cycle.”

The story continues
GHP Real Estate continues to manage RRED, which was launched by FF&P in 2007 with $153 million of capital. RRED has acquired two A-class development projects in St. Petersburg, namely the Electro office centre (www.electrospb.com) and the Trinity mixed use complex (www.trinityspb.com) both of which are fully financed and under construction, as well as a warehouse project in Tomilino, close to Moscow. RRED’s shareholders principally comprise international private equity companies, sovereign wealth funds and clients of FF&P Asset Management.

For further information, please contact:

Cubitt Consulting: James Isola +44 (0)207 367 5100 james.isola@cubitt.com (on behalf of Fleming Family & Partners)

GHP Russia Real Estate Management at +7 495 411 5300 or real.estate@ghpgroup.com.

Notes to Editors

Fleming Family & Partners (“FF&P”) is an international wealth manager which advises wealthy individuals and families on how best to grow and maintain their capital, and how to transfer it between generations. The firm offers an institutional level of professional advice and service to individuals, and an investment process designed to manage risk in a way that is appropriate to each individual client’s needs and objectives.

FF&P Asset Management Limited invests clients’ funds in a range of asset classes, primarily through third party managers, designed to make use of the best abilities available in any given class and allowing clients to benefit from economies of scale. It also offers clients innovative, higher risk opportunities as appropriate. As well as benefiting from FF&P’s core asset management skills, clients also have access to its capabilities in private office and trust services, in private equity funds, in corporate finance advice and in financial planning.

FF&P was founded in 2000, following the sale of Robert Fleming Holdings to JP Morgan Chase Manhattan. It now manages assets of around £4 billion and beyond the founding Fleming family looks after an additional 50 core, discretionary clients.

FF&P Asset Management Limited is authorised and regulated by the Financial Services Authority.

Garber Hannam & Partners Limited (“GHP”) is a financial group which focuses on wealth management, real estate investment, direct investments, M&A and financial advisory. It strives to achieve long-term goals for the benefit of its clients and combines strategic investments and efficient asset management. The Group’s presence in the UK, Russia, Switzerland, Japan, Luxemburg and Guernsey provides a diverse range of investment opportunities for the company and our clients.

GHP has had a presence in Russia since 1992. In 1998, the company was called Fleming UCB and was affiliated to the international investment bank Robert Fleming & Co. Between 2000 and 2012, the company was a subsidiary of FF&P. In 2008, the company established its asset management business, the assets under the management of which have increased to 20 billion Roubles ($670 million).

In 2012 the company was sold by FF&P to management and renamed Garber Hannam & Partners Limited.