Aberdeen Property Investors revealed today it raised €121m (£84m) at the first closing of its European fund of fund

The Aberdeen Indirect Property Partners II fund will take on new investors until October 2008, or until it has reached its target size of €600m (£414m) debt and equity.

The fund is a closed-ended vehicle with a 10-year lifespan, that invests in European property funds, and targets an internal rate of return of between 10% and 14%.

The Fund will be managed by Tomas Otterud, deputy managing director at Aberdeen Indirect Property Partners. He said: ‘I would describe the fund as opportunity driven but not opportunistic.

‘We believe yields have bottomed out across Europe and as a result expect property market returns to come down to more sustainable levels going forward.’