Mint Investments and Avestus Capital Partners will be launching a new closed-end vehicle called Mint Central Europe Property Fund that will focus on core and core-plus office and retail assets in the Czech Republic, Slovakia, Poland and Hungary.
It’s the third property vehicle Mint Investments has created with Avestus, the others being CSIA and Develon. Mint Investments partner Sebastien Dejanovski says MiCEPF will hae a seven-year investment horizon, with an expected net return of at least 14%.
“As a result of the economic crisis, real estate market in the Central Europe has bottomed out and is now showing signs of recovery and future growth. Properties with an attractive combination of price, yield and potential for further income growth and capital appreciation are starting to appear on the market.”
“One of the main reasons for the timing of the fund is the current spread between the yield that prime commercial properties generate and the financing cost.This spread is close to the highest levels seen in Central Europe over the past decade,” Dejanovski added.