AIB Capital Markets (AIBCM) has announced the closure of the fundraising stage for its Polonia Property Fund II Limited, having far exceeded its equity target. AIBCM and its wholly owned subsidiary, AIBPPM Sp z o.o successfully raised 200 million in equity. This will be leveraged to provide a fund total circa 800 million.
AIBCM had a fundraising target of approximately 100-150 mln. but this was extended after they received strong interest from investors. Strategic partners to the fund include one of Ireland's leading property developers, Durkan Homes. "We were overwhelmed by the level of interest we received from pension funds, institutional and private investors," said Eamonn Crowley, President of the Polonia II Fund. "This was due to the excellent performance of the previous Polonia Property Fund LP, along with recognition that there is excellent value available to property investors in the Polish and other Central Eastern European markets."
"Now that we have successfully concluded the fundraising stage we will turn to securing assets for our investors. We intend to follow the same guidelines we implemented for Polonia I Fund and will look to secure a broad range of office, retail and industrial properties occupied by high quality tenants and to diversify investments both geographically and between property sectors with the emphasis on medium term capital appreciation."
"We have already secured one such property with the acquisition of The Fashion House Outlet Centre, a leading designer outlet centre in Warsaw. We are confident that this strategy will reap strong yields and excellent investment returns for all those who have provided equity for Polonia II Property Fund," he added.
The investment period will run for at least seven years with an option to extend for an additional two years. At the end of the life of the investment, AIBCM expects to dispose of the properties acquired through direct sales to local pension funds/life assurance companies or a trade sale.
This is the second Polish property investment opportunity run by AIB Capital Markets, following the success of the Polonia I Fund which raised 101 million in equity. Assets purchased by Polonia I include well known properties such as the Warsaw Distribution Centre, the Diamond Business Park, the Atrium Plaza and Atrium Centrum, the Lubicz Office Builidng, Wisniowy Development, Poznan Financial Centre in Poland and the Obuda Gate Office Building and East West Business Centres in Hungary.