Aberdeen Property Investors has launched a new $600m (£297m) Asian property fund of funds.

AIPP Asia Select is a closed ended vehicle with a life of up to 10 years. It is targeting an annual rate of return of between 13% and 17%, and an annual distribution of 4%.

The fund will be managed by Bo Ljunglof, who also manages AIPP Asia, Aberdeen’s first Asian property fund of funds, which had its final closing this week, having raised $600m.

Like its predecessor, AIPP Asia Select will aim to invest in best-of-class property funds across the Asia Pacific area.

Anders Astrom, a managing director at Aberdeen Property Investors, said: AIPP Asia Select aims to meet the continued strong demand from institutional investors for exposure to Asian property. European investors are increasingly looking to diversify their portfolios away from domestic and regional property assets.’