Standard Life Investments is close to completing fundraising for its third Euro Club fund.
The investment manager said its European Real Estate Club III was on track to raise close to its maximum €300m equity limit, having completed two closings for €237m of equity since June.
The seven-year, closed-end vehicle will have an investment capacity of up to around €600m and target commercial property in core European markets.
The fund will target France, Germany, the Netherlands, Denmark and Sweden.
Daniel McHugh, head of Continental European real estate and fund manager for the Euro Clubs, said: “We developed Euro Club, Euro Club II and Euro Club III in direct response to international investor appetite for access to high-quality assets with the potential for value-add enhancement and superior returns.
“This investment thesis has proven very compelling, and many of our investors have committed capital to at least two of the three clubs.”
Combined, the three club vehicles will have €1bn of equity, providing €2bn of investment capacity with leverage.
“Both Euro Club and Euro Club II had target investment periods of 12 months but were fully committed within nine and six months, respectively,” McHugh said.
“With three deals already completed for Euro Club III, we’re confident of delivering a similarly positive result for our latest vehicle.”
The first Standard Life Investments European Real Estate Club was launched in 2014, raising €308m.
In 2015, Euro Club II raised €393m.
Both clubs are now fully committed.
Standard Life said it has committed around €1.5bn through the three clubs.