Property fund manager Standard Life Investors said it has begun fund-raising for a third tranche of equity for its European Property Growth Fund. The third round of fund-raising comes as Standard Life announced the second tranche of the fund had been fully invested following investments in four properties for approximately EUR 80 mln in Sweden and Belgium. The investments consist of warehouse terraces in Falun and Kungsbacka, Sweden along with a recently modernised office property in Brussel’s central business district and a light industrial estate close to Antwerp.
Property fund manager Standard Life Investors said it has begun fund-raising for a third tranche of equity for its European Property Growth Fund. The third round of fund-raising comes as Standard Life announced the second tranche of the fund had been fully invested following investments in four properties for approximately EUR 80 mln in Sweden and Belgium. The investments consist of warehouse terraces in Falun and Kungsbacka, Sweden along with a recently modernised office property in Brussel’s central business district and a light industrial estate close to Antwerp.
With the second fund's available equity now fully committed - consisting of 31 properties in nine countries across Europe - Standard Life said it was now ready to raise further funds among investors. The objective of the new fund, which has a current value of about EUR 770 mln, is to invest in a high-quality, diversified portfolio of commercial properties across Europe, with a focus on mature, developed Eurozone markets.
Commenting on the new fund, Will Fulton, manager of Standard Life Investments’ European Property Growth Fund, said: ' With attractive income yields and robust occupier demand we are positive about the prospects for a number of property markets in continental Europe.' Fulton also noted that the second fund has returned 12.2% per annum (net of all fees) since its launch at end-2001.
