Investors have committed an additional NOK 250 m (approx €30m) in equity in the second closing of the Norwegian property fund, Aberdeen Property Fund Norway II (Aberdeen Eiendomsfond Norge II ASA).
Based on the very strong demand at the initial closing, Aberdeen Property Investors conducted a second closing at the year-end. Since the fund was launched on 6 October 2005, 1300 investors have invested a total of NOK 540m (approx €70m) in the two closings.
With a planned gearing of 75%, the fund has a committed capital for property investment of approx NOK 2 160 m (approx € 270 m). During 2006 the fund plans to have quarterly closings for new investments into the fund.
The fund is actively managed and aims to build a diversified portfolio that provides excellent prospects across different property types, regions and tenant categories. The fund is a closed ended fund with a 10 year life span and benefits from Aberdeen’s local expertise in the Norwegian property market.
The target return on capital for the fund is 12-18% per year after taxes and charges. Expected annual payout is 5-9% on invested capital.
Espen Klevmark, Managing Director Norway, Aberdeen Property Investors commented:
“The initial success of the Norway II fund is very encouraging. We expect a similar investment inflow throughout 2006, which will create a property portfolio of €600 – 800 million. This is an ideal size for risk diversification and enables the fund to look at the largest transactions in Norway”,
Ubbe Strihagen, International Director Aberdeen Property Investors said:
“Property in Norway is expected to show a continuously high total return, in comparison with Europe. A well diversified property fund could therefore be an attractive alternative to international investors, along with stocks and bonds”
For more information, please contact:
Espen Klevmark
Managing Director Norway and Head of Fund Development,
Tel: +47 900 23 111
Ubbe Strihagen
International Director
Tel: +46 8 412 8039
Charlotte Barker / Tom Siveyer
Maitland: Tel: +44 207 379 5151