News

Dutch development bank FMO will invest 41 million dollars in Redstone, a privately-held Cypriot company which develops and manages a diversified portfolio of over one million sqm. of high-quality residential and commercial real estate assets in Russia, Ukraine, and Bulgaria. FMO’s investment concerns a debt facility with equity conversion rights, which will allow Redstone to develop high quality residential housing projects for middle and lower income households in Ukraine and Russia. 50% of the FMO investment will be used for this purpose. The other 50% will be used for office space as well as commercial real estate.

Development impact of this project is significant due to several reasons. The company will create about 2000 direct jobs (construction workers, etc). In addition, living and office spaces will significantly improve for over 50,000 people. Redstone has high standards of green building design with attention for low energy and water usage. Furthermore, FMO with the assistance of KPMG will support Redstone with the necessary tools to promote the highest standards in transparent business practices.

“We are very happy with this housing deal, our first in the Eastern European region. Since housing is part of our new strategic focus, it is imperative that we develop such projects with strong partners like Redstone. The combination of both lower-end as well as more upscale real estate makes this a commercially viable project, while at the same time addressing housing needs of households across income ranges,” says Nanno Kleiterp, CEO of FMO.

"This agreement marks the beginning of a long-term partnership between the two firms which are fully committed to the development of the region. The facility will allow Redstone to implement its development strategy which consists of introducing high-quality residential housing to markets with high potential, and commercial properties, resulting into significant labor creation. Furthermore, FMO's first investment into the real estate sector in Eastern Europe in current global liquidity crisis is a living proof of Redstone's unique platform and portfolio which has been established over the past years," says Tomer Guriel, CEO of Redstone.    

About FMO:

The Netherlands Development Finance Company (FMO) is the international development bank of the Netherlands. FMO invests risk capital in companies and financial institutions in developing countries. FMO's investment portfolio is EUR 3.4 billion, FMO is one of the largest bilateral development banks worldwide. Thanks in part to its relationship with the Dutch government, FMO is able to take risks which commercial financiers are not - or not yet - prepared to take. FMO's mission: to create flourishing enterprises, which can serve as engines of sustainable growth in their countries.

For further information you can contact:

Nicoline van Slingelandt

Communications Officer (PR)

T: +31 70 314 9790  

M: +31 622 563 047

E: n.van.slingelandt@fmo.nl