AIB Capital Markets raises EUR 200m for new Polish fund

Irish investment firm AIB Capital Markets (AIBCM) has announced the closure of the fundraising stage for its Polonia Property Fund II, having exceeded its equity target. AIBCM and its wholly-owned Polish subsidiary, AIBPPM, successfully raised EUR 200 mln in equity, which will be leveraged to provide a fund total of around EUR 800 mln.

As reported in PropertyEU newsletter last week, AIB Capital Markets and its wholly-owned unit AIBPPM acquired The Fashion House Outlet Centre, a designer outlet centre in Warsaw, for an undisclosed sum. The outlet centre was the first property acquired for Polonia Property Fund II. Last April, AIBCM originally had a fundraising target of EUR 100-150 mln, but this was extended following strong investor interest.

AIBCM intend to follow the same guidelines they implemented for the Polonia I Fund and will look to secure a broad range of office, retail and industrial properties occupied by high quality tenants. The investment period will run for at least seven years with an option to extend for an additional two years. At the end of the life of the investment, AIBCM expects to dispose of the properties acquired through direct sales to local pension funds/life assurance companies or a trade sale.