Aberdeen Property Investors has received an additional $80 million (€50.8 million) for its AIPP Asia Select fund, bringing the total amount raised for the fund to $158 million.
The main investor in this round was a Finnish pension institution, The Local Government Pensions Institution, who committed $75 million. This latest closing brings total equity commitments since the fund’s launch in September 2007 to $158 million.
AIPP Asia Select was launched as a follow up to the Aberdeen’s first Asian fund of funds, AIPP Asia, which was fully subscribed at its target size of $600 million. Lead investors for that fund included the Swedish groups Folksam and Handelsbanken Liv, and the Finnish group Ilmarinen.
Like AIPP Asia, AIPP Asia Select will invest in property funds across Asia Pacific. It is targeting an annual return of between 13 percent and 17 percent. The fund is closed-ended and has a life span of up to 10 years. The fund currently holds investments of USD 74 million in two country-specific funds in Japan and Malaysia and in one Pan-Asian fund.
The two differences between the new fund and the first fund are that it has been specified that leverage for this vehicle will not exceed 75 percent, and this fund will have a lifespan of 10 years rather than the twelve for the first fund.
Like the first Asian fund of funds, the follow-on will be managed by Bo Ljunglöf along with Kang Puay Ju. Kang was previously at Dutch pension fund ABP, where she helped establish its Asian real estate platform. Prior to that, she was a vice president at GIC Real Estate, the property arm of the government of Singapore’s investment division. She is based in Singapore.