Global asset manager, Aberdeen Standard Investments, is pleased to note the announcement issued today by Aberdeen Standard European Logistics Income PLC. The company raised £187.5 million of equity by way of an Initial Placing and Offer for Subscription (including an Intermediaries Offer), with admission to the Premium segment of the Official List of the UKLA and to dealings on the London Stock Exchange. The first day of trading in the shares will be Friday, 15 December.
The new company will tap into the rapid growth of e-commerce across Europe by investing in European logistic properties such as large ‘big box’ ultra-modern warehouses and local ‘last mile’ distribution centres. Occupier demand is strengthening and, typically, these properties benefit from long-term continuous leases which are annually inflation linked, thereby providing solid rental income alongside the potential for capital growth.
The Company will draw on the expertise of over 280 investment professionals within Aberdeen Standard Investments. Evert Castelein, based in Aberdeen Standard Investments’ Amsterdam office, will lead the team supported by Ross Braithwaite and Attila Molnar - and by Andrew Allen, global head of real estate investment research.
The Company targets a distribution yield of 5.5% per annum, predominantly in the form of dividends, and a total return for investors of 7.5% per annum (both in Euro terms). The proceeds from the IPO are expected to be fully invested within 12 months. It is expected that some modest leverage will be used, taking advantage of the competitive cost of finance in Europe.
Martin Gilbert, co-Chief Executive of Aberdeen Standard Investments, said:
“This is the first investment trust launch by Aberdeen Standard Investments and to have raised £187.5 million is an excellent result and delivers a strong platform from which we can grow this exciting asset class. Our discussions with a broad range of investors had led us to believe that long term exposure to income generating logistics assets across Europe within a closed end structure would have wide appeal and this has proven to be the case with pension funds, multi-asset managers, wealth managers and retail investors subscribing to the issue.”
Pertti Vanhanen, Global co-Head of Real Estate at Aberdeen Standard Investments, comments:
“This is another encouraging development for Aberdeen Standard Investments’ real estate business.
“The logistics market is central to the future of the e-commerce industry. In the UK, e-commerce has grown rapidly and significantly in recent years. Europe is growing too but from a lower base and the pace is set to increase as comfort with shopping online grows and big retail brands expand their operations on the continent. This is going to lead to more demand for large, specialised warehouses where goods are picked, sorted and distributed together with smaller units on the outskirts of urban centres to fulfil the so-called ‘last mile’ element of delivery.”
As the second largest European real estate investment manager, Aberdeen Standard Investments has an extensive presence across Europe with 25 offices in 14 countries, an established track record managing real estate assets in listed closed-ended structures and 20 years extensive investing experience in logistics, managing 144 logistics properties with a total value of €2.6 billion across ten European countries.*
Notes to editors
- Aberdeen Standard Investments is a leading global asset manager dedicated to creating long-term value for our clients, and is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.
- With over 1,000 investment professionals we manage £583 billion* of assets worldwide. We have clients in 80 countries supported by 50 relationship offices. This ensures we are close to our clients and the markets in which they invest.
- We are high-conviction; long-term investors who believe teamwork and collaboration are the key to delivering repeatable, superior investment performance. We are resolute in our commitment to active asset management.
- Aberdeen Standard Investments is the asset management business of Standard Life Aberdeen plc, one of the world’s largest investment companies.
- Standard Life Aberdeen plc is headquartered in Scotland. It has around 1.2 million shareholders and is listed on the London Stock Exchange. The Standard Life Aberdeen group was formed by the merger of Standard Life plc and Aberdeen Asset Management PLC on 14 August 2017.
*Standard Life AUM/AUA data as at 30 June 2017. Aberdeen Asset Management AUM data as at 31 March 2017. All other data as at 30 June 2017.
This is an advertisement and not a prospectus for the purposes of EU Directive 2003 / 71 / EC or Part VI of the Financial Services and Markets Act 2000 (“FSMA”). Potential investors should not apply for or buy any shares in Aberdeen Standard European Logistics Income PLC (the “Company”) except on the basis of information contained in the prospectus published by the Company in connection with the offer of shares in the Company and which is available at:
The value of investments, and the income from them, can go down as well as up and you may get back less than the amount invested. Past performance is not a guide to future results. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Target yields are not guaranteed to be achieved. We recommend that you seek financial advice prior to making an investment decision.
Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.
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