The group had an initial target to raise E80 million but, due to the fund being heavily oversubscribed, the launch period saw it generate E128 million. Furthermore, the fund intends to raise additional borrowings of around E375 million to invest in a range of property sectors in the rapidly recovering Japanese property market, making a total portfolio of approximately E500 million.
The Japanese economy has been showing consistent signs of recovery over the last two years and this, coupled with the low interest rates available locally in Japanese Yen, presents a unique and interesting investment opportunity with positive arbitrage between property yields and borrowing costs.
Brian Nevin, senior manager of AIB Private Banking, said: The success of this fundraising clearly demonstrates the appetite by Irish investors to diversify their holdings into attractive new markets such as the Japanese property sector when presented with a well structured proposition.
The fund is expected to have a life of seven years.
