Aberdeen Property Investors today announces the launch of a second Asian fund of funds (AIPP Asia Select).
The launch follow on the success of Aberdeen’s first Asian fund of property funds (AIPP Asia), which had its final closing at USD 600 million on 3 September 2007. Both funds are managed by Aberdeen Property Investors Indirect Investment Management (API IIM)
AIPP Asia was launched in October 2006 with USD 91 million of equity commitments. Its lead investors included Swedish Folksam, Handelsbanken Liv and Finnish Ilmarinen. Since then a further USD 509 million has been raised resulting in the Fund being capped at its target size of USD 600 million.
Bo Ljunglöf, Fund Manager of AIPP Asia said:
“We are delighted to have received such strong interest in AIPP Asia with commitments from 15 institutional investors in seven countries (Netherlands, Switzerland, Ireland, Denmark, Finland, Norway and Sweden).
“We have already committed in six target funds and are currently evaluating a number of other opportunities where we see interesting investments and strong management teams.”
The new fund, AIPP Asia Select, will, like its predecessor, provide real estate exposure through investments in a number of carefully selected 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 will be a closed ended vehicle with a life of up to 10 years following the final closing.
The Fund will be managed by Bo Ljunglöf and Kang Puay Ju, Deputy Fund Manager. 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 appropriate, the Fund may also undertake co-investments and joint ventures, which fit with its overall strategy.
Anders Åström, Managing Director of API IIM commented:
“AIPP Asia Select aims to meet the continued strong demand from institutional investors for exposure to Asian property. European investors are increasingly looking to diversify their portfolios away from domestic and regional property assets. It will leverage our team’s leading position and proven track record of indirect investment in Europe and in Asia, together with our local Asian real estate market expertise and Aberdeen’s large Asian platform. We believe AIPP Asia Select will deliver strong returns from the Asian property market.”
Bo Ljunglöf, Fund Manager of AIPP Asia Select added:
“AIPP Asia Select has already made its first investment and we have a strong investment pipeline. Although the fund has not been widely marketed yet, a number of investors have expressed an interest in it. The Fund received initial seed capital from an institutional lead investor at an early stage and a next closing is planned in October.”
Asia is expected to continue to be an important driver of global economic growth with projected growth rates exceeding those predicted for North America and Europe.
The real estate markets in Asia will benefit from this strong economic growth and most markets are expected to deliver attractive returns for the coming years.
API IIM currently has total investment mandates of approximately USD 800 million in the Asian region, providing optimum conditions to negotiate good terms.
For more information, please contact:
UK/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 & AIPP Asia Select,
Aberdeen Property Investors Indirect Investment Management
Phone: +46 8 412 86 64, mobile: +46 70 274 33 55
E-mail: bo.ljunglof@aberdeenpropertyinvestors.com
Charlotte Walsh/ Tom Siveyer, Maitland
Phone: +44 207 379 5151
ASIA
Lydia Lee, Regional Marketing Communications Manager
Phone: +65 6395 2700
E-mail: lydia.lee@aberdeen-asset.com
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 €12 billion in investments through property funds and management mandates on behalf of its institutional client base. Aberdeen Property Investors has some 500 employees at offices in ten European countries.
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. API IIM holds investment mandates of some €2.6 billion and has invested in excess of €1.8 billion in equity in more than 35 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 some 20 persons whereof five persons are dedicated full time to the Asian region.
Issued and approved by Aberdeen Asset Managers Limited, on behalf of Aberdeen Property Investors, authorised and regulated by the Financial Services Authority.