Bank of Ireland Group has launched a new European retail property portfolio to provide investors with improved diversification than investing in a single property in terms of different retail concepts, locations and varying leases.
The portfolio, open for a limited time, has the potential for higher returns using a combination of investor funds and borrowed money to invest in a diversified portfolio of three to four professionally managed European retail properties. To date, two retail properties have been sourced with a value in excess of E1 billion.
Bank of Ireland private banking will manage the portfolio with the objective of maximizing returns. They currently have property assets of around E2.6 billion under management on behalf of their clients. Based on disposals to date, investors have earned an average annualized return of 26.1%.
The portfolio aims to attract up to E150 million in investor funds in order to part-finance the purchase of prime retail property in targeted European countries. The investment horizon will be approximately seven to ten years, in order to take advantage of any capital appreciation that results from an anticipated upturn in the retail property sector in core European countries. The portfolio will be two-thirds seeded from launch, with the remaining equity to be allocated once one or two suitable properties have been identified and secured.