Garber Hannam & Partners together with Fleming Family & Partners disclosed the final distribution of dividends its the stockholders of FF&P Russia Real Estate Limited (RREL). The liquidation signifies that RREL has now handed back an estimated US$213 million to stockholders together with the global private equity firms and clients of FF&P Asset Management. The United Kingdom investors received a 210% return on their original investment. Based on the results of the revenue that stockholders had received from RREL, the company is very different compared to other commercial real estate firms in Russia.
It was in 2003 when FF&P launched RREL as the foremost institutional fund that concentrated on commercial real estate investment in Russia. RREL was able to purchase a range of commercial real estate properties in Moscow comprising of the Lesnaya 3 office centers, Gogolevsky 11. The warehouse assets at Tomilino and Sholokhovo were also part of their acquired assets which was later sold to domestic and global buyers such as Raven Russia plc and Hines Global REIT. In 2012, the Russian business of FF&P along with the management team of real estate was sold to GHP. RREL was able to survive the global financial crisis having all its assets under lease to international tenants without sacrificing its value.
According to the Managing Partner of GHP Real Estate, Oleg Myshkin, RREL is one of the rare instances in Russian corporate history that returns were given back to individual shareholders.
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