An open-ended European long-income real estate fund managed by Aberdeen Standard Investments has fully invested its initial capital and plans to raise further capital.

The European Long Income Real Estate Fund, which completed an acquisition in the Netherlands and two further acquisitions in Norway and Sweden during the fourth quarter of last year, has also recently completed its fourth acquisition in Dublin.

The manager said the latest deal, completed last month, involved the acquisition of a social housing development in Dublin and was subject to securing external financing.

Aberdeen Standard said the fund completed a €33.5m pan-European senior secured loan facility with Deutsche Pfandbriefbank, allowing the fund to reach its target leverage level of 25% of the gross asset value.

The manager said the fund is now considering a number of further investment opportunities that will interest investors looking to participate in further closes for the fund this year.

Launched in November 2019, the 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 fund intends to target a diversified portfolio of direct real estate assets located in key Western European markets, with a focus on Germany, France, Benelux and the Nordics.

Troels Andersen, fund manager at Aberdeen Standard Investments, said: “With government bond yields and interest rates still at historic lows, we believe the attraction of this kind of strategy is greater than ever. This fund can provide European institutional investors with access to a potential source of long-term, reliable income.

“We’re delighted that the fund is fully financed to target level. With a strong pipeline of deals being considered, new capital commitments can be deployed swiftly.”

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