Aberdeen Property Investors is launching a new Finnish property fund designed to invest in a balanced and well-diversified portfolio of real estate in Finland. Aberdeen Property Fund Finland I Ky ("the fund") is a limited partnership and is open to both Finnish Institutions and individual investors.
The fund, which is structured as an open-ended fund, will benefit from the local expertise of Aberdeen's Finnish property team. It will seek to build a balanced and well-diversified core plus portfolio consisting of Finnish real estate across all sectors including commercial, office and logistic. The target fund size is 150-200m with maximum leverage of 50% of gross asset value and is targeting returns of 10%
"During the development of this fund we spoke to several potential investors and they were keen that the fund should benefit from our local management enabling us to include smaller properties with shorter leases in the investable universe and be structured to provide opportunity for investors to increase their investments quarterly.
'This fund creates an opportunity for small and mid-sized institutions and pension trusts to obtain broad property exposure and thus, an improved diversification of their total asset portfolios which tend to comprise primarily equities and bonds', comments Pertti Vanhanen, Managing Director at Aberdeen Property Investors Finland Oy.
Aberdeen will manage the fund and its acquired properties itself and has made co-operation agreements for marketing the fund with Opstock Oy and Danske Capital Finland Oy.
Aberdeen has successfully launched property funds in each of the Nordic countries together with a European fund of funds product.
The Norwegian fund launched 2004 has raised 417 million and is continuously investing in properties in Norway. It is open for new investments on a quarterly basis.
The Danish fund launched 2004 has presently a property value of 188 million, covering approx. 105,000 m2 located in the metropolitan area. The fund is open for new investments.
The Swedish Property Fund launched 2005 is a core plus fund designed to invest in a balanced and well diversified property portfolio in Sweden. The fund has a target size of 200 500 million and will have its first closing at the end of 2005.
Earlier this year, Aberdeen also launched the first ever European Fund of funds with exposure to European property. The fund has attracted 205 million and will be open for new investors until final closing February 2006.