Warburg, GED team up for Euro property JV

Private equity firms Warburg Pincus and GED Group are reportedly teaming up for a joint venture to invest in property in Southeastern Europe.

Bucharest-based private equity firm GED Group and global firm Warburg Pincus are reportedly teaming up with private investors Andrew Stear and Teodor Pop to invest in the Southeastern European real estate market.

The joint venture reportedly has €50 million ($59 million) to invest in housing, office and retail developments in the region, with a focus on Romania. Real estate investors Stear and Pop are reported to be the managing partners for the venture.

The JV comes as real estate investors look towards Southeastern Europe, hoping to score some of the high yields previously seen in the markets of Central Europe. Romania, which is set to join the European Union in 2007, has a population of around 22 million and a fast-growing economy.  

GED has focused on private equity investments in the region, as well as the Iberian Pennisula, since its founding in 1996. It has so far closed three buyout funds, two focused on Southeastern Europe and one on Spain and Portugal.

Warburg Pincus’ last fund closed on $8 billion earlier this year. The group is no stranger to emerging markets or real estate; it recently invested $31 million in Chinese property development firm Raycom.