Sparinvest FoF holds first close

Four investors, including Danish pension fund PenSam, committed more than €100m to Sparinvest Property Fund II. The fund will target UK property funds first.

Sparinvest has held a first close on its second fund of funds vehicle securing more than €100 million in commitments from four investors.

The Danish funds of funds manager said in a statement the investors included PenSam, the eighth-largest pension fund in Denmark, and the family office Kirk Kapital, which represents the family behind the Lego toys.

Sparinvest Property Fund II is targeting around €500 million in commitments, after the firm’s debut fund raised €480 million in equity commitments in 2006.

SPF II will target returns of up to 13 percent through investments in 15 value-added property vehicles. Sparinvest said half of its returns would be in the form of income, while it expected the UK to be the “first target market”. SPF II will also look to invest in property vehicles focused on the US, Asia and Europe.

Managing partner Bo Jensen said investor sentiment had started to improve adding: “Many investors now see the advantages of gradually building a global real estate portfolio following the substantial market corrections seen during the past two years.”

Sparinvest had hoped to hold a first close on the vehicle at the end of 2008, telling PERE last September it expected to allocate a large proportion of its equity to Asia.