Sparinvest Property Investors has decided to halve the amount of capital it is raising for its second global fund of funds vehicle, according to managing director, Bo Jensen.
The Sparinvest Property Fund II, a value-added fund of funds which was launched at the end of 2008, had originally targeted €500 million but the widespread general malaise in fundraising activities that followed made it hard to pursue such a target.
Last year, Sparinvest held a first closing of €100 million, which was followed shortly with a €10 million second closing. Jensen said that the firm had experienced an uptick in investment sentiment towards fund of funds vehicles during 2010 and was confident of reaching the new revised target for a final closing of €250 million in January.
He said: “Sentiment has improved a lot during this year. If you look back just one year, a lot of investors were quite nervous. Now they are looking ahead and are saying ‘OK now we must do something’.”
He said the firm had already committed approximately €40 million to investments in Europe and the US and further inevstments in the US and Asia were being explored. Jensen said the firm was attracted to opportunities in New York offices and Chinese residential and retail assets among other areas.
The SPF II fund aims to generate a net return of between 10 percent and 13 percent from commitments of approximately 15 funds. Sparinvest has increased its target exposure to Asia through the vehicle to 33 percent from the 20 percent in its previous fund, which closed on €480 million in 2006.