Aberdeen Property Investors has attracted €45 million for the first closing of its new Finnish property fund. The investment has come from pension funds, institutions and corporations such as the Local Government Pensions institution, Suomi Mutual Life Assurance Company, Seamen's Pension fund and the Local Insurance Group.
The fund, Aberdeen Property Fund Finland, is structured as a semi open-ended fund, and will benefit from the strong local expertise of Aberdeen's Finnish property team. The objective of the fund is to build a balanced and well-diversified core plus portfolio consisting of Finnish real estate across all sectors including commercial, office and logistics.
The fund is targeting total returns of 10% and aims to provide both a stable income return and offer potential for value growth. With a maximum leverage for the fund of 50%, the fund is now ready for new property investments of up to 90 million. The target fund size is €150-200m.
The fund creates an opportunity for institutions and pension trusts of all sizes to obtain broad property exposure and thus, an improved diversification of their total asset portfolios, which tend to comprise primarily equities and bonds.
Pertti Vanhanen, Managing Director, Aberdeen Finland, commented:
"We are extremely pleased to have been able to launch this product so successfully.
The strategy of the fund has been widely accepted among investors and the fund benefits from Aberdeen's strong presence in regional cities"
Source: Aberdeen Property Investors