Aberdeen Standard Investments has agreed two deals for its Pan-European Residential Property Fund, a total investment of €120 million ($139 million) in Paris and Vienna.
The two developments have 260 residential units and eight commercial units – a total combined space of 20,178 square meters (217,194 square feet) with 278 parking spaces.
“Residential property tends to have lower volatility than other asset classes and has the potential to deliver attractive long-term income returns for investors. These two deals are reflective of our strategy of providing high quality rental homes in prime central locations that meet the needs of tenants and growing housing demand in Europe,” said Marc Pamin, fund manager of the Aberdeen Standard Pan-European Residential Property Fund.
In Vienna, the fund purchased the ‘Franz Joseph’ project, which is located in the Helmut Zilk Park area near the central train station.
And in Paris, the fund has also committed to the development of a new residential housing project in the west of the city, in the Suresnes area.
Both sites provide a well-balanced mix of apartment types and sizes in popular central locations, with easy access to public transport and a focus on sustainable energy consumption. The developments will be completed in 2020.
These developments will bring the total capital deployed by the fund to €245 million (($285 million), 70 percent of the initial capital raised.
The fund was launched in March this year after raising an initial €355 million ($413 million), and now has a portfolio of 610 apartments in operation or being developed in Denmark, Austria and France. Using Aberdeen Standard Investments’ depth of market experience and cross-border insight, it is aimed at capitalising on the current under-supply of good quality rental housing in core European cities. The Fund is expected to complete its second close at the end of third quarter 2018, with the ambition of achieving gross assets in excess of €1.5 billion ($1.7 billion) in the medium term.
