Stockholm-based Aberdeen Property Investors has held the first close on $91 million (€72 million) for its new fund of funds vehicle focused on Asian real estate vehicles.
“We have a very strong pipeline and expect to commit in three target funds during the coming weeks,” fund manager Bo Ljunglöf said in a statement. “Even though the fund has not been widely marketed yet, there is strong investor interest and we are aiming for a second closing at the end of November.”
The vehicle’s three lead investors are Swedish Folksam, Handelsbanken Liv and Finnish Ilmarinen, according to the firm.
The vehicle, called AIPP Asia, will invest in real estate funds across Asia, in addition to joint ventures and co-investments. The fund is targeting a net IRR of between 13 percent and 17 percent. While new investors will be allowed during the first year of the fund’s life, the fund size is capped at $600 million.
The fund will be managed by Ljunglöf and Kang Puay Ju. Kang was previously at Dutch pension fund ABP, where she helped establish the fund’s Asian real estate platform. Prior to that, she was a vice president at GIC Real Estate, the property arm of the government of Singapore’s investment division. She will be based in Singapore.
Last year, Aberdeen launched the first and largest pooled fund of funds focused on Europe. That vehicle raised €624 million.
Aberdeen Property Investors has more then €9 billion invested on behalf of a number of institutional clients. Its parent Aberdeen Asset Management is quoted on the London Stock Exchange and has more than €100 billion in assets, including €20 billion managed from the firm’s office in Singapore.