Goodman targets €500m for Euro fund of funds

The Australian-owned property fund manager already has initial commitments of €100 million for its second European fund of funds vehicle.

Goodman Property Investors, the international property investment management business of Australia's Goodman Group, has launched its second Eurozone fund of funds.

The Goodman Eurozone Fund of Funds II will be managed by Karin Koks from the company's office in Amsterdam and has a strategy of investing in diversified portfolio of funds operating mainly within the Eurozone countries.

In a statement, the firm said it hopes to generate a net return of 10 per cent a year and has raised €100 million ($154 million) of the €500 million in equity it is aiming for.

GPI first launched a Eurozone Fund of Funds in 2006, which recently closed to new investor commitments following the completion of capital raising. It attracted 28 investors, predominantly UK and Continental European pension funds including  Hampshire County Council, Members of the European Parliament and Southampton Container Terminals. 
Eurozone Fund of Funds II also follows an Asian version launched in March.

Andrew Smith, head of indirect investment at Goodman Property Investors said demand from pension funds to diversify outside their home markets would continue to grow.

“We made a decision to launch a successor fund rather than continuing to increase the size of the first Eurozone Fund of Funds, as we believe this protects the best interests of our investors,” he added.
“Property is becoming a truly global asset class and we believe that for most investors looking to access property outside their domestic market, the multi-manager route offers the most practical solution, offering access to well-established specialists in the region, and improved risk diversification.”

The firm has a 10-year term and can be extended by a further 10 years if a majority of unit holders wish.