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Standard Life Investments Plans Two Real-Estate Recovery Funds

posted Aug 14, 2009, 7:42 PM by Stacey Riggs   [ updated Aug 14, 2009, 7:56 PM by Yale ReiSoleil ]

Aug. 14 (Bloomberg) -- Standard Life Investments, Scotland’s second-largest money manager, plans to raise as much as 325 million pounds ($537 million) in equity for two real estate funds to exploit a two-year slide in commercial-property values.

One fund will be targeted at institutional investors, such as pension funds and insurers, and the other at wealthy individuals, Andrew Jackson, head of strategy at the Edinburgh- based company, said in an interview Aug. 12. Standard Life will start raising the money in October.

London & Stamford Property Ltd. raised about 473 million pounds in an initial public offering in November 2007 and a share sale last month to take advantage of the drop in property prices. Founders Raymond Mould and Patrick Vaughan set up Arlington Securities Plc and Pillar Property Plc in previous real estate recessions in the 1970s and 1990s.

Max Property Group Plc, raised 220 million pounds in a May IPO to follow the same strategy.