Fleming Family & Partners, a Russian property arm, is about to be floated by Deutsche Bank for $300 million in London, the first of the year's expected raft of property initial public offerings hoping to cash in on Russia's real estate boom.

Investors say the listing, expected in the coming weeks on London's Alternative Investment Market, offers a play on Russia's consumer boom for investors seeking to diversify away from oil and gas. Banking sources said the Guernsey-based Fleming Family and Partners Russia Real Estate Development Ltd is targeting returns of between 20 and 31 percent annually from

The investments will be managed by Oleg Mishkin of Colliers International, a real estate consultancy in Russia and former Soviet Union, and also advised by Fleming Family & Partners. Fleming Family & Partners was unavailable to comment. Banking sources said U.S. investment bank Morgan Stanley has been in talks about tapping the IPO market in a deal with Knight Frank.

Globally, direct investment in property climbed 21 percent last year to $475 billion, with cross-border investment accounting for 35 percent of the total, compared with 29 percent in 2004, according to market data.

By M. Sese
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