Eastern europe private equity real estate firm UFG has sold two assets near St Petersburg, Russia, netting its first real estate fund an aggregate net internal rate of return of 67.75 percent.
The two assets are from the 121 hectare industrial land development, Fyodorovskoe Industrial Park, south of St Petersburg. The two lots were sold to a Russian manufacturer and a logistics provider.
UFG's $130 million UFG Real Estate Fund I invested in five land development projects across Russia. The firm acquired the land south of St Petersburg in July 2007, dividing it into 30 smaller lots for individual companies. The plot was then re-zoned into industrial land.
Holger Mueller, managing director of UFG Real Estate, said in a statement: “We see an IRR of 67 percent as a good result, particularly in view of the fact that the Russian stock market at the same time fell by about the same percentage.”
UFG Real Estate held the first close of its second real estate fund, URG Real Estate Fund II, last year with commitments of $140 million.