Aberdeen Property Investors is pleased to announce a successful investment of USD 80 million in its AIPP Asia Select fund on the 18th April 2008. The main investor was a Finnish pension institution, The Local Government Pensions Institution (“LGPI”), who committed USD 75 million. This latest closing brings total equity commitments since the fund’s launch in September 2007 to USD 158 million.
AIPP Asia Select was launched as a follow up to the successful first Asian fund of funds, AIPP Asia, which was fully subscribed at its target size of USD 600 million. AIPP Asia Select, like AIPP Asia, invests in property funds across Asia Pacific. It aims to give investors an annual internal rate of return of between 13 and 17% net, including, upon stabilisation, an annual distribution of 4%. It is a closed ended vehicle with a life of up to 10 years following the final closing. The fund currently holds investments of USD 74 million in two country-specific funds in Japan and Malaysia and in one Pan-Asian fund.
Aberdeen currently has total property investment mandates of approximately USD 1 billion in Asia providing optimal conditions to negotiate good terms.
Arto Tuunanen, Portfolio Manager, Real Estate at LGPI commented:
“Asia is expected to remain an important driver of global economic growth in the future with projected growth rates exceeding those predicted for North America and Europe. As a result, the real estate market in Asia will benefit from this scenario and we feel that Asia should be part of any long-term investment strategy. We are confident that Aberdeen’s strong commitment to the region will yield good returns.”
Bo Ljunglöf, Fund Manager, AIPP Asia Select, commented:
“AIPP Asia Select aims to meet the continued strong demand from institutional investors for exposure to Asian property and we are very pleased to count LGPI among our investors. The fund leverages both on our team’s proven track record of indirect investment in Europe and in Asia, as well as Aberdeen’s large Asian platform and our property expertise in the area. We believe AIPP Asia Select will continue to deliver strong returns from the Asian property market.”
For more information, please contact:
Bo Ljunglöf, Fund Manager AIPP Asia & AIPP Asia Select
Phone: +46 8 412 86 64, mobile: +46 70 274 33 55
E-mail: firstname.surname@aberdeenpropertyinvestors.com
Charlotte Walsh/ Victoria Trench, Maitland
Phone: +44 207 379 5151
About LGPI
The Local Government Pensions Institution (“LGPI”) is responsible for providing and financing employment pensions for local government officeholders and employees in Finland. It is Finland’s largest pension institution in terms of the number people insured and the volume of contribution income. As an investor, it is one of the three biggest pension institutions in Finland. The value of investments totalled EUR 24.3 billion at the end of 2007.
About Aberdeen
Aberdeen Asset Management PLC is a global investment management group listed on the London Stock Exchange and managing more than €130 billion of assets from offices around the world.
The specialist property division, Aberdeen Property Investors, manages some USD 46 billion (EUR 30 billion) in investments through property funds and management mandates. Aberdeen Property Investors has some 800 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 holds investment mandates of some €3 billion and has invested in excess of €2.2 billion in equity in some 50 real estate funds. The company is represented on some 25 advisory boards on behalf of its fund of funds and separate account clients. API IIM currently has a well-reputed team of 20 people, six of which are dedicated to the Asian region full time.
Issued and approved by Aberdeen Asset Managers Limited, on behalf of Aberdeen Property Investors, authorised and regulated by the Financial Services Authority.