Aberdeen Property Investors’ recently launched Asian fund of property funds (AIPP Asia) successfully completed its initial closing on the 20 October with three institutional lead investors and commitments of USD 91 million. The lead investors are Swedish Folksam, Handelsbanken Liv and Finnish Ilmarinen.
The target date for the second closing is the end of November and the fund is now open for other institutional investors seeking exposure to real estate in Asia.
AIPP Asia will offer real estate exposure through investments in a number of carefully selected property funds across Asia Pacific. The Fund aims to provide investors with an annual internal rate of return of between 13 and 17% net and, upon stabilisation, a yearly distribution of 4%. The Fund is a closed ended vehicle with a term of up to 12 years after the final closing. New investors can be admitted during the first year but the total fund size is limited to a maximum USD 600 million.
The Fund will be managed by Bo Ljunglöf, Fund Manager AIPP Asia and Kang Puay Ju, previously at ABP and GIC Real Estate. 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 feasible, the Fund may also undertake co-investments and joint ventures, which fit with its overall strategy.
Anders Åström, Managing Director of Aberdeen Property Investors Indirect Investment Management commented:
“We have been delighted with the launch of this product. AIPP Asia is a fund of property funds that leverages our team’s leading position and proven track record of indirect investment in Europe together with our local Asian real estate market expertise and Aberdeen’s large Asian platform. We are pleased that a number of major investors have shown their interest in this fund which we believe will deliver good returns from the Asian property market.”
Bo Ljunglöf, Fund Manager AIPP Asia, added:
”We have a very strong pipeline and expect to commit in three target funds during the coming weeks. Even though the Fund has not been widely marketed yet, there is strong investor interest and we are aiming for a second closing at the end of November.”
Ubbe Strihagen, International Director of Aberdeen Property Investors concluded:
“There is increasing interest amongst investors for international property exposure to obtain higher returns and increased diversification. With the underlying growth prospects in Asia far surpassing Europe, Asian property exposure is an appealing proposition for many institutional portfolios. We are therefore very pleased to be able to offer this new product to our clients.”
ENDS
For more information, please contact:
EUROPE
Anders Åström, Managing Director, Aberdeen Property Investors Indirect Investment Management Phone: +46 8 412 80 65, mobile: +46 70 522 12 20,
E-mail: anders.astrom@aberdeenpropertyinvestors.com
Bo Ljunglöf, Fund Manager AIPP Asia, Aberdeen Property Investors Indirect Investment Management Phone: +46 8 412 86 64, mobile: +46 70 274 33 55
E-mail: bo.ljunglof@aberdeenpropertyinvestors.com
Ubbe Strihagen, International Director, Aberdeen Property Investors Holding Phone: +46 70 520 33 80
E-mail: ubbe.strihagen@aberdeenpropertyinvestors.com
Charlotte Barker / Tom Siveyer, Maitland Phone: +44 207 379 5151
ASIA
Nicholas Hadow, Regional Sales Director Phone: +65 6395 2700
E-mail: nicholas.hadow@aberdeen-asset.com
About Aberdeen
Aberdeen Asset Management PLC is a global investment management group listed on the London Stock Exchange and managing over €100 billion of assets from offices around the world, including more than €20 billion from Singapore.
The specialist subsidiary Aberdeen Property Investors manages over €9 billion in property investments through property funds and management mandates. Aberdeen Property Investors has some 500 employees at offices in ten countries. Clients are primarily institutional investors such as life and pension funds.
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. At present API IIM is on the investor advisory boards of ten different funds in Europe and has invested in excess of €800 million in equity.
In the Euromoney Awards 2006 for Excellence in Real Estate, Aberdeen was named the leading Investment Manager in several categories: Globally, in Western Europe and Nordic & Baltic regions.
Issued and approved by Aberdeen Asset Managers Limited, on behalf of Aberdeen Property Investors, authorised and regulated by the Financial Services Authority.