DTZ Investment Management (DTZ IM) is to launch ‘Aurora Europe Property Fund’, a European property fund of funds targeting real estate value added strategies in core and emerging pan European Markets. The fund aims to deliver a net return to investors of 8% – 10% per annum.
The fund, which will have its first closing in March, will include a seed portfolio transferred in from the John Lewis Partnership Pensions Trust and Kent County Council Superannuation Fund. The five seed investments of circa 40 million in specialist funds provide exposure to Central and Eastern Europe, the Nordic region and selected locations in Western and Southern Europe.
A further four investment opportunities are currently being reviewed and the target fund size is 200 million. It is envisaged this will be invested across 12 to 15 funds in total.
Over the last decade, DTZ has developed both its European network and fund management business platform enabling DTZ IM to tap into a significant property research resource, comprising 86 people across 24 countries. The team combines this unique research know-how with a deep insight into local markets and occupier trends. This platform allows DTZ IM in Europe to identify 'winning' locations and sectors and select the expert managers and vehicles most able to add value in these markets.
Paul Parker, Fund manager Aurore
Paul Parker the Fund Manager for Aurora commented: "DTZ IM's strategy and rationale is to target particular markets, sectors and fund management strategies rather than to provide investors with a means of 'buying Europe'. Through this selective approach it will enable investors to access both diversification benefits associated with a pan-European strategy and the out performance that can be generated by a targeted approach to fund management."
Aurora's launch coincides with Continental Europe offering opportunities in certain markets and sectors for greater returns than are projected for Europe as a whole.