Jensen raises $88m for Russia fund

The Russia-based private equity real estate firm has closed Jensen Russian Real Estate Fund II. Credit Suisse acted as the placement agent

Jensen Group, the Russian property investment fund and asset manager, has closed Jensen Russian Real Estate Fund II with $88 million of commitments.

The St. Petersburg-based firm led by founder and chief executive Steven Wayne said the effort represented one of the largest, post-crisis capital raises for a dedicated Russia fund, adding it managed to attract commitments from institutional and private investors from Europe and North America.

It will mainly focus on assets in the St. Petersburg region. Credit Suisse was the placement agent.

Jensen Group is a Russian real estate investment and development company which was established in 1991. It closed its first fund in July 2006 on $100 million and invested that capital by July the following year.

News of its second fund being raised follows that of a shelved Russia fund recently. Last week, Stockholm-based East Capital Explorer announced it had closed its two-year-old Russian Property Fund, returning the capital back to its investors. The Stockholm-based firm had yet to make an investment from the vehicle, which it started to raise in July 2008.

The fund was targeting €500 million ($615 million) of equity and had planned to invest in commercial properties, primarily shopping centres and other retail assets in regional Russian cities with a population over 500,000. The fund, which was targeting returns in excess of 15 percent, would also have invested in the Ukraine and Kazakhstan.