Dublin-based AIB Capital Markets (AIBCM) intends to raise EUR 100 mln to EUR 150 mln from pension funds and private investors for investment in property in Poland. The capital raised will be leveraged on a 3:1 basis which will facilitate total acquisition financing of EUR 600 mln.

Dublin-based AIB Capital Markets (AIBCM) intends to raise EUR 100 mln to EUR 150 mln from pension funds and private investors for investment in property in Poland. The capital raised will be leveraged on a 3:1 basis which will facilitate total acquisition financing of EUR 600 mln.

AIBCM has total assets of over EUR 44.4 bn and is a division of Allied Irish Banks (AIB) group. The investment strategy in Poland will involve a range of asset classes such as prime quality commercial, retail, warehouse logistics, residential and development. It may also include investment in joint ventures and co-investment with large strategic investors. AIBCM said it intends to purchase high-quality properties in Warsaw and the regional cities of Poland, and will examine some diversification opportunities in other Central European countries such as Hungary, the Czech Republic, Slovakia, Slovenia and the Baltic States.

The minimum investment will be EUR 150,000 for pension funds and EUR 250,000 for private investors. 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. This is the second Polish property investment opportunity run by AIB Capital Markets, following the success of Polonia I which raised EUR 101 mln in equity and was leveraged to EUR 390 mln.

Assets purchased by Polonia I include well-known Polish properties such as the Warsaw Distribution Centre, the Diamond Business Park in Lodz, the Atrium Plaza and Atrium Centrum in Warsaw and the Poznan Financial Centre.