Aberdeen Property Investors closes on $200m for second Asia FoF

Aberdeen Property Investors, the Stockholm based fund manager and investor, has closed on half the amount of equity it originally planned to raise for its second Asia focused fund of funds. The firm has taken a cautious approach to investments going forward and is unlikely to spend anything until after the summer.

Aberdeen Property Investors Indirect Investment Management, the indirect funds platform of Stockholm-based Aberdeen Property Investors (API) has held a final close of just less than $200 million for its second Asia focused fund of funds.

API aimed to raise $400 million for the AIPP Asia Select Fund, the follow-up to the $600 million AIPP Asia Fund which closed in September 2007, when it launched 18 months ago. But investor caution from its Europe-dominated investor pool has led to the firm revising its target. A concentration of these investors came from the Nordic region.

According to Jon Lekander, API’s head of indirect investment management, the AIPP Asia Select Fund will not make any investments until after the summer. When it does return to the market, it will favour established managers over “boutique” managers with little track record – a slight change in strategy from API’s first fund of funds which made some niche investments in China and India.

The fund will target an internal rate of return of between 13 and 17 percent for investors and will last for 10 years.

Lekander took charge of the platform in October last year and is in charge of three of the 12 funds API currently manages and that are open to new investment.

To read more, see this month’s issue of PERE.