European Property Growth Fund reopens its doors to investors
11 January 2008
Standard Life Investments, one of the largest property fund managers in the world, today announced that the second tranche of its European Property Growth Fund (EPGF) is now fully invested following the investment in four properties for approximately 80m euros in Sweden and Belgium.
With the Fund’s available equity now fully committed – consisting of 31 properties in nine countries across Europe – Standard Life Investments is now in the process of raising a new, third tranche of equity from investors across the globe. The current value of the Fund is approximately 770m euros.
EPGF has purchased two retail warehouse terraces in Sweden. The first is located in Falun, central Sweden and the second is at Kungsbacka, approximately 30km south of Gothenburg. The remaining two investments are in Belgium. The first property consists of a recently modernised office property located in Brussels' central business district. The second is a light industrial estate close to Antwerp.
Will Fulton, Manager of the European Property Growth Fund, Standard Life Investments, said:
"With attractive income yields and robust occupier demand we are positive about the prospects for a number of property markets in continental Europe. In light of this, and following consultation with existing investors, we have taken the decision to raise a further tranche of equity to facilitate new acquisitions. This will provide investors with the opportunity to access a diversified portfolio of property investments with a focus on dominant European cities. The European Property Growth Fund has returned 12.2% per annum (net of all fees) since its launch at the end of 2001."
For the 12 months to September 2007, the Fund returned 19.4% (net of all fees).
In October 2002 Standard Life Investments successfully closed EPGF, exceeding its original target and resulting in a total geared fund size of 300m euros. EPGF was restructured in June 2005 principally due to demand from existing partners to extend the life of the Fund and give it greater flexibility.
The Fund was also expanded to allow access to new investors and was heavily oversubscribed at its new close. As a result, it moved from a closed-ended, finite life structured fund to an innovative open-ended unitised structure.
The objective of the Fund is to invest in a high quality diversified portfolio of commercial properties across Europe, with a focus on mature, developed Eurozone markets. The Fund invests predominantly in the office, industrial/logistics and retail sectors with a view to maximising growth by active asset management.
