Aberdeen Property Investors announces the first closing of its second closed ended European fund of funds, Aberdeen Indirect Property Partners II (AIPP II). The launch follows the success of Aberdeen’s first fund of property funds (AIPP), which was established in 2005 as the first of its kind in Europe with equity commitments of €623.5 million. Both funds are managed by Aberdeen Property Investors Indirect Investment Management (API IIM).
Similarly to its predecessor, AIPP II invests in a number of carefully selected property funds across Europe. It aims to give investors an annual internal rate of return of between 10% and 14% net, including an annual distribution of 5%. It will be a closed ended vehicle with a life of up to 10 years following the final closing.
The fund has been structured with lead investors committing €121 million in the first closing. The target size of the fund is €600 million and it will take on new investors until October 2008 or until fully subscribed.
Best-in-class property funds will be identified and underwritten based on proven track records, established local relationships, seed portfolios/pipe-lines and solid fund structures. Where appropriate, the Fund may also undertake co-investments which fit with its overall strategy.
The Fund will be managed by Tomas Otterud, Deputy Managing Director of API IIM and Fund Manager of AIPP who commented:
“I would describe the fund as opportunity driven but not opportunistic. We believe yields have bottomed out across Europe and as a result expect property market returns to come down to more sustainable levels going forward. We are, however, confident that double digit returns can still be achieved in the asset class through active management, joint ventures, alternative sectors and utilisation of market inefficiencies. Performance between funds is likely to diverge and consequently manager selection will be even more important going forward.”
Mr Otterud added:
“According to the latest available audited figures, AIPP has delivered a net annualised IRR of 18.6% since inception, outperforming its target of 10-14%, with only 46% leverage exposure and 3% development exposure. According to our performance attribution analysis the largest contributing component has been our manager selection.”
For more information, please contact
Tomas Otterud, Deputy Managing Director, API IIM
Tel: +46 8 412 86 40, mobile: +46 70 224 01 81,
E-mail: tomas.otterud@aberdeenpropertyinvestors.com
Anders Åström, Managing Director, API IIM
Tel: +46 412 80 65, mobile: +46 70 522 12 20,
E-mail: anders.astrom@aberdeenpropertyinvestors.com
Ubbe Strihagen, International Director
Tel: +46 70 520 33 80
Email: ubbe.strihagen@aberdeenpropertyinvestors.com
Charlotte Walsh/ Tom Siveyer, Maitland, Tel: +44 207 379 5151
About Aberdeen Property Investors
Aberdeen Asset Management PLC is a global investment management group listed on the London Stock Exchange and managing over €130 billion of assets from offices around the world.
The specialist division Aberdeen Property Investors manages €13 billion in property investments through property funds and management mandates on behalf of its institutional client base. Aberdeen Property Investors has some 500 employees at offices in eleven European countries and in Singapore.
API IIM is a subsidiary of Aberdeen Property Investors and Europe’s leading indirect property investment manager. API IIM focuses exclusively on indirect real estate investments for institutional investors. API IIM holds investment mandates of some €2.8 billion and has invested in excess of €1.9 billion in equity in more than 40 real estate funds. The company is represented on 26 advisory boards on behalf of its fund of funds and separate account clients.
Issued and approved by Aberdeen Asset Managers Limited, on behalf of Aberdeen Property Investors, authorised and regulated by the Financial Services Authority.