Sberbank launching residential real estate investment fund

Sberbank, Russia’s biggest lender, is {{{*}}} launching a closed-end residential real estate mutual fund for non-qualified investors.

The Sberbank Residential Real Estate fund, which would finance the construction of relatively inexpensive apartments in Moscow and its suburbs, is being set up by Sberbank Asset Management, a division that was part of Troika Dialog before the Moscow brokerage was bought out by Sberbank.

The fund would exist for three years. The usual risks of investing in unfinished real estate would be “significantly reduced” by the provisions of a law which protects the rights of off-plan buyers, Sberbank said in a statement.

The investment timeframe for a development project would be set at between one and two and a half years, which would allow for “return on the investment to be maximised”.

Sberbank Asset Management offers its clients a range of investment strategies with different risk/return ratios.

It oversees 23 open-ended mutual funds and one interval fund, three closed-end funds of particularly risky (venture) investments, a closed-end real estate fund, and several hedge funds for qualified investors.

It also manages assets for governmental organisations such as the Russian Pension Fund and the Federal Public-State Fund for the Protection of the Rights of Depositors and Shareholders.

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