Standard Life Investments has raised €391m for its second Euro Club fund.
The investment manager said 10 investors backed the European Real Estate Club II vehicle. Investors from the UK, the Netherlands, the US, Canada and Saudi Arabia committed capital to the strategy.
As reported in October, the fund manager was targeting an upper limit of €400m for the follow-on vehicle.
Daniel McHugh, head of Continental European real estate at Standard Life Investments, said most of the initial Euro Club investors decided to commit capital to the new fund, along with a “significant number of new international investors”.
McHugh said: “Our strategy is to deliver value-add returns from mispriced core quality real estate with measurable and manageable risk attached.”
Six assets, in Paris, Dusseldorf, Hamburg, Nuremburg and Aarhus, Denmark, have been bought for the fund.
With leverage, the closed-end vehicle will invest up to €790m. The seven-year fund is investing in core markets, including France, Germany, Benelux and Scandinavia.
Standard Life Investments launched its first European Real Estate Club, late last year, raising more than €300m from global investors. Institutions from the US, Canada, Thailand, Netherlands, UK and Middle East – most of which were advised by The Townsend Group – backed the vehicle.
In March this year, the firm ploughed €300m in the Netherlands, Germany, France and Denmark for the club. The vehicle is now fully committed.
“The first Euro Club was fully invested within six months of the final close,” McHugh said.
“For Euro Club II, we already have an extensive deal pipeline that continues to build, given the momentum we have been able to establish in this extremely competitive market.”