Aberdeen Standard Investments has launched its first pan-European residential property fund for institutional investors – Aberdeen Standard Pan-European Residential Property fund.
The first open-ended property fund of its kind to invest in the residential sector on a pan-European basis, the European Residential Property fund will focus on the private rented sector (PRS).
The investment team intends to invest both in newer-to-lease residential buildings as well as in the development of new construction-in-progress assets to create a portfolio of high-quality, sustainable, middle-income residential properties. While the private rental market is a priority, the team can invest up to 25% of the portfolio in other types of residential property, such as student residences, micro-apartments or age-appropriate housing.
The fund is managed by the German-based investment management company. Fund manager Marc Pamin, along with deputy fund managers Markus Lambrecht, Ed Crockett and Ole Tange will look after it.
A diversified country allocation is planned in Western Europe, including the Nordic countries and the United Kingdom. The goal is a return of five to seven percent per year (after costs), of which around three to four percent should be distributed. The debt financing ratio should not exceed 40 percent at the fund level and should be 25% in the long term.
Supported by cornerstone investor Pensioenfonds Metaal en Techniek (PMT) and its fiduciary manager MN. Initial, the fund has received investments in excess of €350m from eight investors in Netherlands, Switzerland, and Luxembourg.
With further fund-raising planned, the fund is intended to grow to above €1bn over the next five years.