Property investment company aAim Group has teamed up with Bank of Scotland Corporate to launch a £2bn European property fund to be invested over the next two years.
The fund will be called Symmetry property fund and as part of the deal, Bank of Scotland have acquired a 20 per cent stake in aAim. Bank of Scotland, part of the HBOS Group, is committing £100m to the fund which is being matched by aAim and members of its investors club.
The target return is 15 per cent with proposed gearing of 90 per cent and the portfolio will invest in commercial property in the UK and Western and Eastern Europe.
aAim Group manages a portfolio worth around £400m at present and the management team own nearly 50 per cent of the portfolio.
Bank of Scotland head of joint ventures John Moran says: “The establishment of the Symmetry Fund allows aAim to take another step forward as a real estate fund manager and as a geared fund will allow Bank of Scotland to provide structured and tailored debt funding for underlying investment opportunities.”
Sir Alex Ferguson and Sir David Frost are members of aAim’s investors club.