EPGF concludes SLI’s first development deal in Italy

Standard Life Investments, one of the largest property investors in Europe, has made its first acquisition in Italy. Purchased on behalf of its European Property Growth Fund (EPGF), it brings to 12 the number of European countries in which SLI has direct commercial property interests.

The joint venture has been concluded with Panattoni Europe and consists of a 104,000sqm logistics warehouse development at Rolo in Northern Italy, 35km from Modena. The development has a total end value in excess of 567 million. The transaction, sourced via SLI’s Paris Office which opened last year, is the first acquisition in Italy for the European Property Growth Fund Limited Partnership.

With the Fund’s available equity now fully committed, consisting of 32 properties in 10 countries across Europe, Standard Life Investments is now in the process of raising a new, third tranche of equity from investors across the globe. The current value of the Fund is approximately 5815m (unaudited, as at 31/12/07).

Will Fulton, Fund Manager of EPGF, Standard Life Investments, said: “Italy presents us with a strong investment opportunity because it is experiencing a consistent and rising demand for high quality logistics buildings to meet current occupier requirements. This particular site is in an excellent location adjacent to the A22 motorway, providing fast access to a number of large Northern Italian cities. “Panattoni is an experienced developer in this sector with whom we already have a strong relationship, following a number of joint ventures in Poland.”

EPGF has delivered an annualised total return over the last three years of 18.5% (unaudited, net of all fees, to 31/12/07). Since inception in late 2001, the fund has delivered an annualised return of 11.7% (unaudited, net of all fees, to 31/12/07).

In October 2002 SLI successfully closed EPGF, exceeding its original target and resulting in a total geared fund size of 5300ms. EPGF was restructured in June 2005 principally due to demand from existing partners to extend the life of the Fund and give it greater flexibility. As a result, it moved from a closed-ended, finite life structured fund to an innovative open-ended unitised structure.

The objective of the Fund is to invest in a high quality diversified portfolio of commercial properties across Europe, with a focus on mature, developed Eurozone markets, and a limited exposure to non-Eurozone markets. The Fund invests predominantly in the office, industrial/logistics and retail sectors with a view to maximising growth by active asset management.