AIB raises e200m to set up Polish property investment
Allied Irish Bank's Capital Markets (AIBCM) division has raised €200m of equity for a Polish property investment fund, which will have €800m of firepower when debt is included.
AIBCM had originally aimed to raise €100m and €150m from investors for the fund, Polonia Property Fund II, but extended its target, due to strong demand.
Strategic partners to the fund include Irish property developers, Durkan Homes.
"We have already secured one such property with the acquisition of The Fashion House Outlet Centre, a leading designer outlet centre in Warsaw," said Eamonn Crowley, president of Polonia II.
It is understood the centre cost €45m. Tenants include Nike, Adidas and Puma.
Polonia II is the second Polish property investment company set up by AIBCM. Polonia I was established four years ago when the bank raised €101m in equity.
The investment period of Polonia II will run at least seven years, with an option to extend for a further two.
AIBCM then plans to dispose of the properties through director sales to pension funds or life assurance companies or via a trade sale.
