AIB Capital Markets has held a final close on Polonia Property Fund II, its second Central and Eastern Europe property fund, on €200 million ($285 million). The fund will be leveraged for a total investment capacity of €800 million.
The fund originally had a target of €100-€150 million, but AIB chose to extend the size after receiving strong interest from previous and new investors, the firm said. One of these partners is one of Ireland’s leading property investors, Durkan Homes.
The fund, which will be led by president Eomonn Crowley, follows the firm’s previous Poland-focused fund, Polonia Property Fund. The first fund raised €101 million in equity and used those funds to purchase properties throughout the country including the Warsaw Distribution Center, the Diamond Business Park, the Atrium Plaza, the Lubicz Office Building, Wisniowy Development and Poznan Financial Center. The fund also acquired the Obuda Gate Office Building and East West Business Centers in Hungary.
Crowley said the new fund will invest in a broad range of office, retail and industrial properties occupied by high quality tenants in Poland. At the same time, it will seek to diversify investments both geographically and between property sectors with an emphasis on medium-term capital appreciation. The fund has already acquired Warsaw designer outlet complex Fashion House Outlet Center.
The fund will have a lifespan of at least seven years, with an option to run an extra two years if desired.