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Israeli, Us Investors To Inject 800m Euro In Cee Real Estate Fund

Israeli real estate company Gazit-Globe and Citi Property Investors Europe, the investment manager arm of Citygroup, plan to invest 800 million euro in Austrian fund Meinl European Land, Bulgarian-language Stroitelstvo Gradut (Construction and the City) weekly reported on March 24.

The possible sale of Meinl has been the object of media speculation since the end of last year. However, the fresh amount of resources available to the Austrian fund, which invests in Central and Eastern Europe (CEE), will allow it to restructure and refinance its debt.

The deal offered by the Israeli and US investors would help Meinl focus on its existing portfolio. The cash injection will have a positive impact on the company’s balance of payments and its credit rating, according to Roger Orf, managing director of City Property Investor Europe, quoted by Stroitelstvo Gradut.

Meinl European Land is one of the owners of the project for the development of a shopping mall across Business Park Sofia in the Bulgarian capital.