Sparinvest Property Fund (SPF), the global property fund of funds, has just committed to the US diversified fund RREEF America REIT II, which brings total commitments to $210 million (170 million).
"RREEF America REIT II is our second US investment and we see the fund as a solid building block in our fund portfolio", says Managing Partner Bo W. Jensen, Sparinvest Property Investors, adding: "over the coming two years we expect to make commitments to another three to four funds in the US, which will be more sector and/or region specific."
In Europe, SPF's recently committed to UBS Euro Value Added Real Estate Fund focusing on office investments in the Eurozone. SPF's first European investment was in the UK shopping centre fund, the Mall, via a secondary trade. Another three to four commitments to European funds will be added over the coming two years.
In the Asian region a couple of funds are to be selected for the portfolio which will enhance the diversification benefits even further in terms of regions, sectors and investment styles.
SPF has so far raised $525 million (415 million) from 11 Danish institutional investors and expects to reach a total of approximately $600 million (500 million) before final close in December 2006.