Boston-based MIL Equity Partners has agreed to a partnership with Colliers International’s Swiss affiliate to advise it on property investment in the European country.
Under the terms of the deal, Colliers AMI (Suisse) will provide advice from research through to acquisitions, lease structuring and negotiations.
It will also manage MIL’s portfolio in the country.
MIL is an American private real estate limited partnership focused on emerging Central and Eastern European countries that launched last year.
Its agreement with Colliers AMI (Suisse) is an extension of a partnership formed two months ago with Colliers International Hungary which followed the launch by MIL last year of the Bulgaria Real Estate Limited Partnership Fund to buy, lease, manage and operate residential and commercial property in the emerging European countries, mainly Bulgaria.
Bulgarian property prices increased 20 percent in 2003 and 25 percent in 2004.
In a statement, Milo Georgieff, chief executive and chairman of MIL, said: “We will continue working and expanding our relationships within the Colliers International network in Central and Eastern Europe.”
Switzerland is viewed by experts as one of the toughest European property markets to operate in because it is still dominated by domestic investors, is relatively opaque, and has a complex tax structure given the country is made up of regional “cantons.”
However, it is also attractive given its political stability and recovering economy.
Among private equity players to have completed deals there is Pramerica, whose London-based merchant banking arm completed a deal to buy private property company A&A Liegenschaften Schweiz for an equity value of $60 million (CHF 75 million; €45 million) in May.