Aberdeen working on 3rd Norwegian fund

Aberdeen Property Investors (API) is seeking to raise at least €500 mln in equity for its latest dedicated Norwegian fund. The new fund, Aberdeen Property Fund Norway III, will be an unleveraged closed-end vehicle for institutional-grade core real estate investments.

API CEO Rickard Backlund told PropertyEU that the fund is currently being marketed and he expected a first close during spring or early summer.

Backlund said the fund is being initiated because the previous two funds in the series have reached their cap.

The previous fund, Aberdeen Property Fund Norway II, has a target of €1 bn of commercial real estate assets under management. It employs a core+ to value-added strategy and was originally designed to use up to 70% leverage. The target long-term return on equity is 12 - 14% per annum after management fees and fund taxes.

Backlund said API is optimistic about the market for the next couple of years. 'It will be more or less a normal property market with some positive and negative aspects. The general underlying trend will be slightly positive.'

A third Asian fund-of-funds is also being created. ‘We hope we can bring existing clients to Asia and maybe we can convince existing clients in Asian products to invest more,’ Backlund added.

At end-December 2009, API, part of London-listed Aberdeen Asset Management, managed EUR 25 bn of direct and indirect property investments through separate accounts and collective funds.