REAL ESTATE – The state pension fund of Finland has said how pleased it – as one of the lead investors – is with the first year of the Aberdeen Indirect Property Partners (AIPP) Fund.
The fund-of-fund announced final closing at the beginning of February.
Timo Löyttyniemi, managing director of the State Pensions Fund of Finland, said “interesting” acquisitions by the fund had been good for investors.
“We’re very pleased with how the fund has been set up and developed in its first year,” said Löyttyniemi. “It made a good, quick start and gathered some good investments.”
At closure, AIPP, Europe’s largest pooled property fund of funds had total equity of €623.5m to invest in funds across Europe.
Around 60% will be in funds targeting stable income and potential capital growth. Long-lease fully let properties and opportunistic investments will each account for 20%. The fund expects an annualised return of 10%-14%, with an annual dividend yield of above 5%.
Löyttyniemi’s fund, which has €7.5bn assets under management, is one of three lead investors in the oversubscribed Aberdeen fund. The others are Nordea Life & Pensions and Folksam. Another 27 institutional investors are committed to the fund.