Aberdeen Standard to sell €2.3bn Nordic real estate business

Aberdeen Standard to sell €2.3bn Nordic real estate business

DEAS Group, the asset and property management group in Denmark, is acquiring a Nordic real estate business from Aberdeen Standard Investments (ASI).

Aberdeen Standard Investments (ASI) has selected the DEAS Group as the preferred bidder to acquire its Nordic direct real estate business, covering real estate in Sweden, Norway, Finland and Denmark.

The proposed transaction, assuming completion, would result in DEAS Group taking over the management of a portfolio of 132 properties consisting of office, warehouse/logistics, retail and residential buildings representing a value of EUR 2.3bn assets under management (AuM).

ASI also intends to appoint DEAS Asset Management to manage its EUR 1.7bn portfolio of Nordic assets. This brings the total assets under the proposed deal managed by DEAS Asset Management to EUR 4.0bn.

‘We are delighted to partner with DEAS Group to create a long-term solution for our domestic real estate business across the Nordics,” said Neil Slater – Global Head of Real Estate, Aberdeen Standard Investment.

”Our primary focus was to find a high quality asset manager that continues to provide a superior service for clients invested in Nordic direct real estate portfolios. Furthermore, as part of the intended transaction, we will enter into a domestic asset management arrangement with DEAS Asset Management enabling ASI to continue, as part of its international real estate strategy, to have an investment allocation to the Nordics,” he added.

”The DEAS Group’s proposed acquisition of the Nordic direct real estate business of Aberdeen Standard Investments and the future cooperation follows a broader Nordic strategy focusing on pursuing growth opportunities in all four markets,” commented Henrik Dahl Jeppesen, CEO DEAS Group.

”Above all, our prime focus is on creating strong investment results for our investors. Our intention is to establish a pan-Nordic full-service provider within real estate that offers execution in all stages of the value chain for investors. We will build on local expertise and best practice throughout the Nordic region,” he added.

The parties expect to be in a position to complete by the end of Q1 or the beginning of Q2 2021.