Marshall to raise $500m for Russian real estate

The Marshall Real Estate Management Fund will target distressed late-stage construction projects and real estate in Moscow. The firm said assets were trading at 'considerable discount' thanks to the credit crunch.

Russian private equity firm, Marshall Capital Partners, is raising a $500 million investment fund to target distressed real estate opportunities in Russia, particularly in Moscow.
The firm said in a statement it would focus on existing properties and late-stage construction projects struggling in the wake of the financial crisis.

“A large number of high-quality real estate assets are for sale now with a considerable discount due to the market crunch,” Konstantin Malofeev, an MCP managing partner, said.

In October, crisis talks were held between the Russian government and leading real estate development companies, such as PIK , Sistema Hals, Glavstroi and Inteko, in an effort to help bolster the Russian real estate market amid predictions valuations could drop by as much as 30 percent over the next six to 12 months.