Aberdeen Asset Management has set up a new commercial property fund to invest up to EUR 1.5 bn in the Russian property market. The UK fund manager plans to raise EUR 500 mln of equity for Aberdeen Property Fund Russia, its fourth new investment vehicle this year.
Aberdeen Asset Management has set up a new commercial property fund to invest up to EUR 1.5 bn in the Russian property market. The UK fund manager plans to raise EUR 500 mln of equity for Aberdeen Property Fund Russia, its fourth new investment vehicle this year.
The Luxembourg-listed 10-year closed-ended fund will target returns of 14% per annum and dividends of between 5% and 8%. The fund will be diversified both by sectors and by geography, covering Moscow, St. Petersburg, and 11 other cities with a total population of over one million. It will invest in commercial properties with a key focus on the office and retail segments. The initial offer period starts on 1 October and the fund is expected to have its first closing in the fourth quarter of 2007.
Russia is a fast growing economy with strong GDP growth, Ole Dall-Hansen, CEO of Aberdeen Property Investors Eastern Europe, said. 'At the same time Russian property is underdeveloped with large potential for property investments. The demand for office space is steadily increasing and a rising personal income means that the retail sector has seen a period of strong growth, which we expect to continue.'
