Aberdeen Standard Investments has agreed the first two deals for its new Pan European Residential Property Fund, which together will amount to an investment of €125 million ($146 million).
In Vienna, the fund has committed to two phases of the “Das Ensemble” development, close to the Austrian capital’s Danube Channel and Prater area. The scheme will include 244 apartments, a children’s play area, a supermarket, chemist and 113 parking spaces and is scheduled to complete in early 2020.
The fund has also negotiated terms on the acquisition of a 113,333-square-foot residential complex on Teglholmen in Copenhagen’s South Harbour district built in 2014. This transaction is expected to complete before the end of third quarter 2018. The asset has 105 apartments spread over seven floors, two commercial units on the ground level and parking for 75 cars. It also benefits from solar-generated light and power, achieving one of the highest energy performance ratings available in Denmark.
“These transactions reflect our focus to invest in quality rented residential property in Europe’s leading cities which can deliver stable long-term income returns,” said Marc Pamin, fund manager of the Aberdeen Standard Pan European Residential Property Fund. “We are building a portfolio of good-quality, well-located and sustainable rental properties that meets the needs of tenants and addresses growing housing demand across Europe. That’s how we’ll aim to deliver the robust, long-term income returns we anticipate for the fund.”
The Aberdeen Standard Pan European Residential Property Fund was launched in March with an initial investment of €355.5 million ($414 million) from nine investors in the Netherlands, Luxembourg, Switzerland and the United Kingdom. It is considered the first fund of its kind in the market. Leveraging Aberdeen Standard Investments’ depth of market experience and cross-border insight, it is aimed at capitalizing 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 ($1.8 billon) in the medium term.
Aberdeen Standard Investments’ current residential portfolio across Europe and the United Kingdom includes nearly 10,000 properties with a combined total value in excess of €6 billion ($7 billion).
