Aberdeen Indirect Property Partners, Europe’s first pooled Pan European property fund of funds, attracted an additional €44 million at its second closing, bringing the total of committed capital to €205.5 million.
“We are pleased with the strong interest in this product. We are very confident we will reach the initial target of €300-€400 million by the time the fund has its final closing,” says Anders Åström, managing director of Aberdeen’s subsidiary API Indirect Investment Management (API IIM).
AIPP, which was launched in February 2005, has made three investments into property funds to date, totalling of €75.5 million in equity.
“We are well on our way to build a strong portfolio of excellent property funds. We have already made investments in three funds and are presently evaluating several other opportunities where we see interesting investment opportunities and strong teams,” says Tomas Otterud, director of AIPP. “In all three investments to date we have been able to add extra value to AIPP’s investors by a combination of accessing off-market opportunities, existing portfolios and achieving substantial fee rebates by co-investing with API IIM’s separate account clients. Investors participating in AIPP’s subsequent closings will also benefit from this existing portfolio of qualitative funds,” Mr Otterud continues.
The fund, AIPP, is structured as a Luxembourg FCP to allow for a broad international investor base, and will invest in 8-15 property funds across Europe. The majority of the investments will be made in what are known as Core plus funds, i.e. funds that both provide a stable income return and offer potential for value growth. The aim is to achieve an annual total return of 10-14%, with an annual dividend yield in excess of 5%.
“By pooling investors together we provide access for investors to achieve diversified exposure to the European property market and its various managers,” says Tomas Otterud,.
The fund benefits from API IIM’s established investment process and proven track record of indirect investments in Europe. API IIM is Europe’s leading indirect property investment managers, having a fully established investment process and holding some of Europe’s largest mandates for indirect property investments. So far during 2004-2005, APIIIM have analysed more than 70 Continental European property funds and made 18 fund commitments, totalling in excess of €360 million (in equity), on behalf of its institutional client base. API IIM currently has European investment mandates in excess of €1.5 billion on behalf of several institutional investors, providing its clients with a strong position in the market.
For more information, please contact
Anders Åström, Managing Director, Aberdeen Property Investors Indirect Investment Management AB,
phone: +46 8 412 80 65, mobile: +46 70 522 12 20,
e-mail: anders.astrom@aberdeenpropertyinvestors.com
Tomas Otterud, Director, Aberdeen Property Investors Indirect Investment Management AB,
phone: +46 8 412 86 40, mobile: +46 70 224 01 81,
e-mail: tomas.otterud@aberdeenpropertyinvestors.com