Retail boost for portugal

Portugal is set to benefit from an influx of cash from an unlikely source.

A Finnish pension fund and a pension insurance company have pledged over €100m (US$155.5m) to Portuguese retail property.

The Local Government Pensions Institution (LGPI), a Finnish pension fund for municipal workers; Ilmarinen, a Finnish mutual pension insurance company; and Schroders Investment Management have joined Sonae Sierra in the initial closing of the Sierra Portugal Fund (SPF) with combined commitments of €120m.

Sonae Sierra launched its second shopping Centre investment fund, SPF, with a total equity of €300m.

The SPF is seeded with eight Portuguese shopping centres, representing a total market value of over €425m, and also benefits from a pipeline of three projects currently being developed in Portugal, whose estimated market value, after completion, will be €235m.