REAL ESTATE 鈥� The state pension fund of Finland has said how pleased it 鈥� as one of the lead investors 鈥� is with the first year of the Aberdeen Indirect Property Partners (AIPP) Fund.
The fund-of-fund announced final closing at the beginning of February.
Timo L枚yttyniemi, managing director of the State Pensions Fund of Finland, said 鈥渋nteresting鈥� acquisitions by the fund had been good for investors.
鈥淲e鈥檙e very pleased with how the fund has been set up and developed in its first year,鈥� said L枚yttyniemi. 鈥淚t made a good, quick start and gathered some good investments.鈥�
At closure, AIPP, Europe鈥檚 largest pooled property fund of funds had total equity of 鈧�623.5m to invest in funds across Europe.
Around 60% will be in funds targeting stable income and potential capital growth. Long-lease fully let properties and opportunistic investments will each account for 20%. The fund expects an annualised return of 10%-14%, with an annual dividend yield of above 5%.
L枚yttyniemi鈥檚 fund, which has 鈧�7.5bn assets under management, is one of three lead investors in the oversubscribed Aberdeen fund. The others are Nordea Life & Pensions and Folksam. Another 27 institutional investors are committed to the fund.
