Goodman Property Investors, the international property investment management business of Goodman Group has announced that its Eurozone Fund of Funds has raised over 250 mln. since it launched just over a year ago.
The fund, which has returned 9.6% year to date, is on course to reach its 300m equity target within the 12-24 month timeframe announced when it launched in July 2006. The 250m raised so far represents 24 investors, predominantly UK and Continental European pension funds. These pension funds include Hampshire County Council, Members of the European Parliament, and Ibstock Brick.
The Eurozone Fund of Funds comprises a number of Euro denominated specialist sector focused funds, the majority being focused on investments in the eurozone, and has a net target return of 10% per annum over the life of the fund. The majority of the investments are in specialist sector and/or geographically focused funds. The portfolio provides a balanced exposure to the traditional office, retail and industrial sectors combined with investments in some specialist sectors such as residential and car parking. The fund is managed by Karin van der Sluijs who is based in Goodman's Amsterdam office.
Andrew Smith, Head of Indirect Investment at Goodman Property Investors, said: "The success of the Eurozone Fund of Funds demonstrates the increased appetite from European pension funds for investing in property outside their domestic market. It also shows many of these are finding that the fund of funds route is the best way to achieve better diversification as it allows them to access a number of specialist managers who can leverage specific opportunities in a range of countries and sectors. One of the key selling points of the Fund has been the strong investment pipeline we have secured. This highlights the benefit of having people on the ground with the local knowledge and experience to seek out these specialist managers. Goodman's extensive network of international offices enables it to deliver the widest range of opportunities possible for investors."