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Standard Life holds €391m final close

The European asset manager has held a final close for its second vehicle and has invested more than a third of its capital.

Standard Life Investments (SLI), the Edinburgh-based asset manager, has held a final close for its second fund, Standard Life Investments European Real Estate Club II (Euro Club II).

The €391 million vehicle garnered commitments from 10 investment groups and will have up to €790 million in buying power with leverage, according to the firm’s Monday announcement. SLI, which manages £17.8 billion in assets in real estate, plans to deploy the seven-year fund’s capital in commercial property in France, Germany, Belgium, Luxembourg, the Netherlands and Scandinavia.

Investors in Euro Club II include the Los Angeles Fire and Police Pension System, which committed $40 million, and the New Hampshire Retirement System, which allocated $15 million, according to PERE Research & Analytics.

“Our strategy is to deliver value-add returns from mispriced core quality real estate with measurable and manageable risk attached,” said Daniel McHugh, the firm’s head of continental Europe real estate, in a statement Monday. “For Euro Club II we already have an extensive deal pipeline that continues to build, given the momentum we have been able to establish in this extremely competitive market.”

SLI has already invested 35 percent of the capital in Euro Club II in the purchase of six office and logistics assets in France, Germany and Denmark.

The firm held a final close for its debut fund, the €308 million Euro Club, in October 2014, and has invested all of the vehicle’s capital in 10 deals.