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. Last Updated: 07/27/2016

Eastern Property Raises $55M in Share Sale

LONDON -- Eastern Property Holdings, a real estate company investing in Russia and the former Soviet Union, raised a less-than-planned $55 million by selling shares.

EPH, which is listed in Switzerland, sold 715,000 shares for $77 each, the company said in a statement. It was offering 950,000 shares for between $77 and $81. Renaissance Capital managed the sale.

Morgan Stanley Capital International's Emerging Market Index has shed 8.6 percent since March, on concern about higher interest rates in the United States, which make potential gains from investing in riskier emerging market assets less attractive.

The secondary share sale nearly doubled the number of shares outstanding to 1.62 million, lifting the market capitalization of EPH to $125 million. The company will use the money raised to acquire an office building in Moscow and invest in three development projects in the capital and other cities, including residential property, Olin said.

EPH currently owns an office building in Moscow and has a 10 percent stake in Hypercenter, which owns a hypermarket and retail property.

EPH is managed by MCTrustco, which oversees about $1 billion in assets. It raised 50 million Swiss francs ($42 million) in an IPO in November 2003, about a third of what it sought.