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Revetas raises €120 million for Fund II

The central European real estate specialist has received backing from the Church Pension Fund and Deutsche Finance Group for its second CEE-focused private real estate fund.

Revetas Capital, a specialist real estate investor focused on central European economies, has held a €120 million close for its latest fund after backing from Church Pension Group and Deutsche Finance Group.

The New York-based pension fund and the German investment manager joined all of Revetas' previous limited partners who have re-upped for Revetas Capital Fund II.

“We are delighted to have gained the support of such high profile investors as the Church Fund and Deutsche Finance Group. This is further validation of our strategy to seek compelling long term gains in the CEE region, yielding strong cash-on-cash returns, in spite of the recent euro currency crisis,” said Revetas' founder and managing partner, Eric Assimakopoulos.

Fund II is a follow-on to Revetas Capital Recovery Fund I, which was focused on over-leveraged, distressed and under-performing property opportunities across central Europe. The core central European countries Revetas is targeting remain the same as for Fund I, including Poland, Czech Republic, Slovakia and Hungary. However, the investment strategy is no longer simply focussed on 'distressed' situations, with Revetas now also pursuing income-producing assets held in capital structures that sponsors wish to exit.

Revetas has already completed some transactions using capital from Fund II. PERE revealed in September the firm partnered with York Capital Management to acquire a portfolio of four properties for  €137 million, €95m of which is restructured debt. The portfolio covers around 1 million square feet across four different cities in Poland, Czech Republic and Slovenia.

The firm has also acquired Sofia Airport Centre an office and logistics complex in Bulgaria's capital, adjacent to Sofia International Airport.

“The reality of the CEE regional economies is that they are geared for rapid recovery, which is now starting, and we believe that they offer potentially significant returns and opportunities compared with the better-understood western European economies,” said Assimakopoulos.

In addition, Revetas has strengthened its board by appointing Ronald Weiser, alongside its existing members Patron Capital founder, Keith Breslauer; founding partner of  private equity investment firm JRJ Group, Jeremy Isaacs and; chairman of the Austrian Retail Association, Stephen Mayer-Heinisch.  Weiser is the former US Ambassador to Slovakia.