VTB Capital, the investment business of Moscow-based VTB Group, has teamed up with the global commercial real estate group at Deutsche Bank to raise a Russia fund.
In a statement, the pair did not reveal how much had been raised in a first close for VTBC-DB Real Estate Partners I, but said that the partnership size upon final closing would be €300 million.
The partnership will focus on investment in prime real estate in Moscow, St. Petersburg, and other major Russian cities.
Scandinavian pension funds, including Ilmarinen and Etera, are among the first limited partner investors in the fund.
Finnish project management and construction company, SRV, is another limited partner, but it will also become a partner by providing project management and construction services.
Yuri Soloviev, president and global chief executive of VTB Capital, said in a statement that western investors were “positive on the prospects” of the Russian market.