Irish banking group AIB Private Banking intends raising as much as €80 million to buy property in Japan.
Late last week AIB said it would raise the €80 million from Irish investors and borrow as much as to €320 million.
The focus of the €400 million will focus on all types of property initially in
AIB said it would seek property investments in other cities such as
The fund will not invest more than a third of the €400 million in any one property.
AIB’s Brian Nevin said the Japanese economy is poised for a sustainable recovery after more than a decade of deflation, which saw capital values fall by more than 70% since the early nineties.
“The fund will buy properties at or near the bottom of the property market cycles and may refurbish or redevelop them to increase their value. However, it will invest less than 20% of the capital commitments of the fund in property development projects.
“The risks of investing in the fund range from general economic and property market risks to the relatively high risk and frequency of earthquakes in
The minimum investment is €50,000 per individual. The bank expects the fund to return more than 11% a year for eight years. Investors will pay 2% commission to AIB as well as acquisition and management fees.
The closing date for applications to invest in the fund is March 31.
AIB Private Banking is creating the fund in conjunction with Alpha Investment Partners, a subsidiary of Singapore-based Keppel Corporation.
Australian Property Journal
