Investment Management Group’s Russia Development Fund has struck a joint venture with the Russian developer, Kvartstroy Group, to invest up to $200 million in residential projects in Russian regions.
In a statement, the firm said it would focus activities on a newly developed class of residential property in the country – affordable housing.
Kvartstroy Group, in which IMG’s development fund bought a 30 percent stake in April 2009, has been working on a strategy to invest in affordable housing for the last two years as it seeks to meet demand for low cost quality residential premises.
The JV plans to launch its affordable housing programme across Russia and Kazakhstan and has acquired several sites in Nizhny Novgorod and Volgogard on which it plans to build 280,000 square metres of residential assets. The total investments into the project are estimated to be $200 million.
Investment Management Group is the private equity real estate firm founded by Maksim Kunin, the former head of Morgan Stanley real estate investing in Russia.
Kunin said: “We continue to see high return potential in the Russian residential real estate, and the affordable housing in particular as this product is practically unavailable in the current market.”
Major investors in IMF’s development fund include Aberdeen Indirect Property Partners II, the European Bank for Reconstruction and Development, and Immofinanz.