The new closed ended investment product is the latest addition to the global asset manager’s range of real estate funds and focuses on particular European real estate markets.
The European Real Estate Club (Euro Club) is what Standard Life describes as a “limited partnership” between institutional investors from the US, Canada, Thailand, the Netherlands, UK and the Middle East.
The Euro Club has already committed over 60% of the available capital to assets in France, Denmark and Germany, and has other opportunities currently in the pipeline.
The total equity raised was over €300m (£240m/$370m) providing over €600m (£470m/$740m) of investment capability once the target gearing of 50% is deployed.
Most clients were advised by global real estate consultant, The Townsend Group, which Standard Life said “shares a similar positive view on the investment opportunity”.
Head of continental European real estate, Daniel McHugh, said: “We identified a market opportunity to acquire prime assets in certain core locations with some measured risk attached.
“We believe this asset profile offers an attractive return to investors with lower risk. The Club strategy is core-plus in nature, but over the vehicle life it is targeting a 13% net financial return on investment.
“We’re particularly pleased to have gained support from The Townsend Group with a number of their clients on board, supporting the investment thesis.”
