Two companies launch a billion-euro central-European real estate fund.

London-based investment manager Letterstone Group and private investment company Starr International have established a new European company to invest up to EUR 1b in real estate developments in Hungary, Slovakia and Romania and on a latter stage also in Ukraine. Letterstone and Starr, headed by former AIG boss Maurice Greenberg, have provided initial funding of EUR 100m to the new, Netherlands-based investment fund, LS Real Estate Ventures, to acquire EUR 500m of developments in Eastern Europe over the next 15 months. Starr International has the option to increase LS Real Estate's equity by a further EUR 150m in increments of EUR 50m. With debt, the fund will have up to EUR 1b to invest. The projects will consist of a mix of multi-sector investments in existing property, properties with alternative use potential and new-builds.