PREFF pan-European real estate Fund of Funds

ATRIUM, sponsor of the Fund, has announced that the first closing of PREFF Pan-European Real Estate Fund of Funds, was completed on 2nd May 2005.

PREFF, a closed-end company domiciled in Ireland, will invest in a portfolio of best-of-breed core and core-plus real estate funds, providing a well diversified exposure to European real estate within pre-defined country and sector allocations intended to optimise the risk/return profile of the fund.

PREFF aims to deliver a total return of 8 to 10% per annum, during its 10 year life. A significant part of that return will be delivered through a semi-annual dividend payment of 5 to 6% per annum.

The fund is targeted primarily to institutional clients, including pension funds, insurance companies and foundations. Some family offices will also be investors in PREFF. The initial investors were a pool of Portuguese institutional investors, including the Portuguese Social Security (IGFCSS), with a 10% stake in the fund, the subsidiaries of two major Spanish financial institutions and one leading international insurance group.

€58 million was raised at the first close and PREFF is targeting a total of €250 million through additional closings within the next 12 months.

According to Nuno Sampaio, a Director of ATRIUM, there is a very strong case for investing in an innovative fund such as PREFF, including the access to best-of-breed real estate funds with large minimum investment sizes, the broad pan-European diversification, the disciplined investment process and the strong credentials of OPC, the investment advisor. OPC is an independent real estate research and investment company, specialising in European indirect investment.

ATRIUM Investimentos, a Portuguese asset manager specialising in alternative asset classes, is sponsoring the fund. Capital Alliance Partners, a UK firm specialising in real estate and private equity, is acting as international placement agent. State Street is the custodian and administrator and Deloitte & Touche are the auditors and tax consultants of the fund.

Source: Oxford Property Consultants

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