Sparinvest raises EUR 100m for new fund of funds

Danish property company Sparinvest Property Investors has said that its second institutional real estate fund of funds, Sparinvest Property Fund II (SPF II), has raised over EUR 100 mln of equity at its first closing.

The fund has an investment period of three years and will invest in high-quality assets in Asia, US and Europe. The first acquisition is expected to be made before the new year in the UK. The fund is targeting returns of 10-13%.

'Just like Sparinvest's first property fund, SPF II will follow a global investment strategy with a preference for small and medium-sized property funds. We are looking for managers with outstanding asset management skills and a deep network in their local target markets', said Bo Jensen, managing partner of Sparinvest Property Investors.

SPF II has raised commitments from four investors including PenSam, the eighth-largest pension fund in Denmark, and Kirk Kapital, the investment holding of the family behind Lego.

'We commit to SPF II because we are confident that Sparinvest - via its global network and specialized competencies - will succeed in finding the most attractive property funds in the US, Europe and Asia. Our investment will help us boost our strategic exposure to foreign real estate in the years to come', said PenSam CIO Benny Buchardt Andersen.

The intention is for SPF II to reach the same size as Sparinvest's first property fund. The fund manager has identified a strong interest for the fund and a number of new investors, both from Denmark and abroad, are expected to join the fund in the subsequent closings.

The Copenhagen-based fund of funds manager launched its first global property fund in 2006 with total commitments of approximately EUR 480 mln. The core-plus portfolio is now spread over 20 countries, comprising almost 500 properties within retail, office, industrial and multifamily through investments in 13 real estate funds.