Case | HBS Case Collection | April 2008 (Revised December 2008)

North Goes East

by Nicolas P. Retsinas, Daniela Beyersdorfer and Elena Corsi

Abstract

In August 2006, Magnus Lofgren and Robert Provine, managing directors and co-founders of the "North Real Estate Opportunities Fund," need to decide which real estate investment the Fund should pursue as its first project. The Fund's target region, Central and Eastern Europe, was changing rapidly and returns in some of the more developed regions started to resemble those generated in Western Europe. Yet, the two partners had managed to identify several projects in different countries that promised to generate the Fund's targeted Internal Rates of Return at or above 20% annually. They now had to decide which opportunity was the best match to the Fund's investment profile and showed the highest economic promise.

Keywords: Developing Countries and Economies; Investment Funds; Risk Management; Emerging Markets; Opportunities; Real Estate Industry; Europe;

Citation:

Retsinas, Nicolas P., Daniela Beyersdorfer, and Elena Corsi. "North Goes East." Harvard Business School Case 208-136, April 2008. (Revised December 2008.)