UK/EUROPE – The io group and Axa Real Estate Investment Managers have announced the first closing of a€550m high yield cross-border property fund, the European Industrial Partnership, which includes investment from Dutch pension funds PGGM and KPN.

Other investors include the Government of Singapore Investment Corporation (GIC) and Axa itself. The investors have all committed to the initial target of €220m to be used to fund an investment programme of up to €550m.

The launch comes after three years of extensive research by io to make sure that the infrastructure needed for investment in the first phase target countries, France, Germany and the Netherlands, was in place.

Joint ventures have been formed in Paris, Berlin and Amsterdam where io says it can actively seek out the best acquisitions and identify investment opportunities.
John Sims, io group chief executive, comments: “This is very much the first phase of the plan to consolidate what is currently a localised and fragmented market. Investors need to know that their funds can be placed efficiently and effectively into local markets.”

Dr Seek Ngee Huat, president of GIC Real Estate comments : “We hope to see the fund create a branded portfolio, which is lacking in mainland Europe for this type of product.”