Sparinvest Property Fund, the Danish property fund of funds, today announced that it is to invest up to €170m (£114.5m) in RREEF’s America REIT II and the UBS Euro Value Added Real Estate Fund
Sparinvest has chosen to invest in the UBS fund to boost its exposure to office markets in the Eurozone.
Another three to four commitments to European funds will be added over the next two years.
‘Over the coming two years, we expect to make commitments to another three to four funds in the US, which will be more sector and/or region specific.’
The fund has raised €415m (£279m) from 11 Danish institutional investors and expects to reach a total of around €500m (£337m) before final close in December 2006. It has a core-plus profile investing in core, value-added and opportunistic real estate funds.
Sparinvest has a three-year commitment period and a 12-year life.
The fund manager is Sparinvest Property Investors, a company jointly owned by the investment partners and Sparinvest, a Danish asset management company.