Aberdeen Standard Investments (ASI) has raised over €100m for a newly-launched European long-income real estate fund.
The open-ended European Long Income Real Estate Fund, which had its first close at the end of last month, received equity commitment from six institutional investors located in six different countries.
ASI said the fund plans to build a diversified portfolio of direct real estate assets located in key Western European markets with a focus on Germany, France, Benelux and the Nordics — excluding the UK.
The new fund aims to provide long-term, reliable, inflation-protected income streams with reduced volatility in capital values compared with a more conventional real estate fund, the manager said.
The manager said the fund will follow a similar investment strategy to the Aberdeen Standard Long Lease Property Fund, which was launched for the UK market 16 years ago and has assets under management in excess of £2.5bn (€2.9bn).
Andy Creighton, head of continental European Real Estate, said: “Long lease real estate has established itself as an important part of many institutional investors’ portfolios in the UK and we’re pleased to launch this fund for institutions in continental Europe.
“Our knowledge and experience of long income real estate, along with the depth and breadth of our European real estate team, makes us ideally placed to manage this Fund and to provide more investors with access to a potential source of long-term, reliable income.”