Aberdeen releases first pan-European fund of €161.5 mln (EUR)

Three international institutional investors have invested €161.5 mln in the first pan-European fund that invests in non-listed indirect real estate funds, Aberdeen Indirect Property Partners (AIPP).

This capital has been raised by Folksam (a Swedish insurance company), Nordea Life & Pension and the State Pension Fund of Finland. Together they increased the €100 mln. they promised before.

In 2005 Aberdeen Property Investors wants to raise a total of €300 to €400 mln from institutional investors. AIPP has been structured as a Luxembourg legal entity so investors from different countries can enter the fund. The fund will invest in 8 to 15 real estate funds in Europe. The majority of the investments will be done in the so-called ‘Core plus’ funds. These are funds that both have a steady income as an increase of value. The goal is an annual return on investment of 10-14%, with an annual dividend of more than 5%.

“By pooling the capital of institutional investors, we will get access to a diversified exposure on the European real estate market, which up until now was only possible for the larger institutes”, says Tomas Otterud, investment manager of the fund.

The fund will profit from Aberdeen’ experience and track record in investing in indirect real estate funds in Europe. Aberdeen Property Investors claims to be the market leader in the field of investing in indirect real estate funds, with investment mandates of over €1.2 billion from several institutional investors.

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