Hunter Property Fund Management has entered into a E200m (£157m) central European joint venture with Behringer Harvard, a Dallas-based property company.
Behringer will invest E17m (£13.4m) of equity from its Behringer Harvard Opportunity REIT I fund into a joint venture with the St Wenceslas Property Fund, managed by Edinburgh-based Hunter. St. Wenceslas, established in 2005 as a closed-ended Guernsey Unit Trust, has invested E130m (£102m) in 22 properties in the Czech Republic, Poland and Slovakia.
The joint venture’s initial assets are a portfolio of 15 retail and industrial/ assets in the Czech Republic, Poland and Slovakia. A pipeline of additional central European properties has been identified for purchase.
Tenants include local divisions of multinational retailers and manufacturers, such as Carrefour; Tesco, Royal Ahold, Rewe and Unomedical, a global supplier of medical devices based in Denmark.
Hunter’s managing director Mark Hunter said the joint venture ‘will focus entirely on retail and industrial/logistics assets in two distinct portfolios with a combined target size of E200m.
The investment by Behringer consolidates its relationship with Hunter, which was formed during 2007 through Hunter Property Ventures, a private equity joint venture which has invested so far in the acquisition of Becket House on Cheapside, in the City of London.
‘Economic growth in 2007, as measured by real growth in the gross domestic product, has generally occurred at a higher rate in central Europe than in western Europe and the United States,’ Behringer’s founder and CEO Robert Behringer said.