EUROPE - Aberdeen Property Investors has teamed up with investment bank Barclays Capital to offer institutional investors a SEK3bn (E300m) Swedish Property Index Certificate (PIC).
Similar to API’s UK PICs, the Swedish PICs are structured as eurobonds, issued by Barclays Bank, and will be listed on the London Stock Exchange. They are measured against the SFI/IPD (Svenskt Fastighetsindex/Investment Property Databank) All Property Annual Total Return Index.
The PICs offer institutions low risk exposure to the Swedish property market, as well as a vehicle for both buyers and sellers to manage existing property risk.
Rickard Backlund, chief executive of API Nordic Region, said: “When compared to direct property investment, Swedish PICs represent a low cost and low risk means of accessing the Swedish property market.
“For these reasons they will be attractive to strategic as well as tactical investors from Sweden, the Nordic region and elsewhere.”
Minimum investment is SEK1m. Barclays Capital will support a secondary market in Swedish PICs by quoting bid/offer prices on the internet on a best endeavours basis. The aim is to enhance liquidity as well as price transparency.
Edward de Waal, director, financing solutions group, Barclays Capital, said: “Previous PICs issuances, which offer exposure to the UK property market using the UK IPD index, have become well known in Britain amongst property investors.
“This latest issue provides the first opportunity to invest in a Swedish property-linked bond [and gives] an attractive proposition for institutions looking for diversified property exposure.”
Closing dates for the Swedish PICs are April 30 and June 30 respectively. The maturity profile is from 30 April 2003 to 31 March 2006 and 31 March 2008.
API has assets under management of around E9.2bn (£5.8bn) and operates in the UK, the Nordic region and Continental Europe.
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