A host of reasons are leading institutional investors to sell interests in property funds including the introduction of European regulations Solvency II and Basel III, said Aberdeen as it explained the rationale for the fund.
Jon Lekander, global head of property multi-manager for Aberdeen, said: “We see a growth of attractive secondaries opportunity in this part of the market as investors are becoming increasingly active in the management of their indirect property portfolios.” He added: “As the first asset manager to launch a European property fund of funds, this secondaries fund is a natural progression for Aberdeen.”
The fund manager, which controls around €2.5 billion of multi-manager assets in Europe as well as assets in Asia and the Americas, is targeting a final close for the Aberdeen European Secondaries Real Estate fund by September 2014.
The strategy for the vehicle is to construct a portfolio of around 15 funds that would have exposure to more than 200 properties in Europe. Lars Graneld and Johan Temse are the selected lead managers.
One of the investors so far is the Swedish buffer fund, AP1. Tomas Svensson, portfolio manager, real estate, said: “We think that Aberdeen as a fund manager is in a great position to capitalize on this strategy.”
He added: “We believe that providing liquidity to a market where sellers far outnumber buyers, combined with the increased interest for investments beyond core in Europe, will provide us with investment opportunities with attractive risk-adjusted return.”