EUROPE - A Luxembourg-domiciled fund is promising to deliver pension funds above-average yields with a fund set up to invest €600—700m in Central European car parks.
The Société d’Investissement à Capital Risque (SICAR), a vehicle developed by 3E Car Park Investors, is targetting the latest in a series of niche sub-sectors that has, to date, encompassed global infrastructure projects such as toll roads and petrol stations.
The closed-end company, which is scheduled to wind up in 2014, will target an 8% dividend.
"It represents one of the few opportunities where you can still buy assets at 8—9% yields compared with the average 6—7%," said Arnaud van der Wyck, managing partner of fund sponsor Capital Alliance Partners, a specialist real estate investment bank.
The fund’s initial closing attracted €50m from three unnamed European institutions but van der Wyck said he expected interest in the fund to come primarily from pension funds.
"They [pension funds] need to buy at a certain yield, so they’re looking at different regions and niche sectors," he said.
Investment opportunities for the SICAR exist in Europe, India, China and Russia – "basically, anywhere where there has been an increase in wealth and a shift in the car population", said van der Wyck.
"There’s no competition at the moment. Carparking firms are looking at the region but so far not with a concerted effort. That will change. When? Who knows?" he added.
