Aberdeen Property Investors (Aberdeen) has carried out a €161.5 million first closing on Aberdeen Indirect Property Partners (AIPP), Europe’s first pooled PanEuropean property fund of funds. The capital was supplied by a network of the fund’s three lead investors: Folksam (including KPA), Nordea Life & Pension, and a pension fund in Finland, all of which increased their total initial commitments of €100 Million. Aberdeen aims to raise €300-400 million from institutional investors during the course of 2005.
“We are extremely pleased to have been able to launch this product so successfully,” says Anders Åström, head of Aberdeen’s subsidiary API Indirect Investment Management (
APIIIM) who will be the investment manager of the fund. “The fund is the first of its kind in Europe, and the fact that all lead investors have increased their initial commitments proves that all parties are satisfied with the results.”
AIPP, which has been structured as a Luxembourg FCP to allow for a broad international investor base, 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 can provide access for investors other than the biggest institutions to achieve diversified exposure to the European property market and its various managers,” says Tomas Otterud, investment manager of the fund.
The fund will benefit from APIIIM’s established investment process and proven track record of indirect investments in Europe. APIIIM is one of 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. In 2004, APIIIM analysed more than 60 Continental European property funds and made ten fund commitments, totalling €184 million, on behalf of its separate account clients. As APIIIM continuously invests in the market, it already has a strong investment pipe-line of target funds and expects to make a number of investments on behalf of the fund in early 2005. APIIIM currently has European investment mandates in excess of €1.2 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