Aberdeen Standard Investments (ASI) has selected DEAS Group, the leading asset and property management group in Denmark, as the preferred bidder to acquire its Nordic direct real estate business, covering real estate in Sweden, Norway, Finland and Denmark.
Neil Slater – Global Head of Real Estate, Aberdeen Standard Investment commented:
“We are delighted to partner with DEAS Group to create a long-term solution for our domestic real estate business across the Nordics.
“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.
“After an extensive due diligence process, DEAS Group was a clear choice from a client, cultural and real estate perspective”.
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 €2.3 bn* assets under management (AuM).
ASI remains committed to the Nordic region and, following completion of the proposed transaction, will continue to have exposure to the region across its Pan-European and sector specific real estate funds. To facilitate this, ASI intends to appoint DEAS Asset Management to manage its €1.7bn portfolio of Nordic assets. This brings the total assets under the proposed deal managed by DEAS Asset Management to
DEAS Asset Management, the independent subsidiary within the group, will manage the new activities and consequently conduct asset management of a property portfolio totalling €8.2bn AuM.
The ASI portfolios in scope as part of the proposed transaction are managed by local teams of investment professionals with a proven track record of delivering returns to investors. The teams operate with well-defined investment strategies and proven processes with full integration of risk management and ESG aspects.
By acquiring the Nordic direct real estate business from Aberdeen Standard Investments, the DEAS Group will be expanding into the Nordic market. The company will therefore strengthen its overall full-service value offering across the entire value chain within real estate in Sweden, Norway, Finland and Denmark.
Henrik Dahl Jeppesen, CEO DEAS Group commented:
”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.”
“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.”
As part of the proposed transaction, the intention is that the DEAS Group will welcome new investment professionals and future colleagues with an extensive local market insight, knowledge and a solid track record. Consequently, DEAS expects to have around 90 real estate investments professionals operating from eight offices of DEAS Asset Management in Sweden, Norway, Finland and Denmark.
Henrik Dahl Jeppesen added:
“I believe that the best results are created by professionally skilled and dedicated people. We look forward to an exciting journey together with competent and dedicated real estate investment professionals creating strong results for our investors in Sweden, Norway, Finland and Denmark.”
The entry into the proposed transaction is subject to ASI completing consultations with the relevant Swedish trade unions (Unionen, Ledarna and Sveriges Ingenjörer, Akademikerförbundet SSR, Akavia and Sveriges Arkitekter), and procuring the relevant internal board approvals. Following execution, the deal will remain subject to certain standard completion conditions such as the procurement of regulatory and other approvals. The parties expect to be in a position to complete by the end of Q1 or the beginning of Q2 2021.
*Figures to 30.9.2020
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Notes to Editors
About Aberdeen Standard Investments
- Aberdeen Standard Investments is a global asset manager dedicated to creating long-term value for our clients. With over 1,000 investment professionals, we manage £455.6, €501.2 billion* of assets worldwide. We have clients in c.80 countries supported by over 40 offices globally. This ensures we are close to our clients and the markets in which we invest. (*as of 30 June 2020)
- We are high-conviction, long-term investors who believe teamwork and collaboration are the key to delivering repeatable, superior investment performance.
- You can access the Aberdeen Standard Investments media centre here: https://www.aberdeenstandard.com/news-and-media
About DEAS Group
The DEAS Group is the leading asset and property manager within real estate in Denmark. DEAS Asset Management A/S and DEAS A/S are wholly owned companies in the DEAS Group. Our dedicated team of more than 900 real estate professionals provide all types of asset services, including asset management, property management, letting services, technical building consultancy, facility services and public-private partnerships. The total portfolio under management is approximately 2,400 properties with a total of +10M sqm (AuM of EUR +30bn). Approximately 70,000 commercial and residential tenants are serviced every day from offices in Copenhagen, Aalborg and Aarhus. DEAS Group is owned by Montagu Private Equity.
You can access the DEAS Group media centre here: https://deasgroup.com/about-deas/media-center/news
About DEAS Asset Management A/S
DEAS Asset Management offers asset management including investment management, portfolio optimisation and risk management to Danish and international institutional investors and funds. Total portfolio under management is EUR 4.2bn. A dedicated team of 24 investment professionals manages more than 350 real estate assets focusing on both portfolios and individual properties and projects with strong competences in all real estate segments, including office, logistics, retail and residential. DEAS Asset Management A/S is an alternative investment fund manager (AIFM) authorised by the Danish Financial Supervisory Authority and is a part of the DEAS Group.
Issued in the United Kingdom (UK) by Aberdeen Asset Managers Limited, registered in Scotland (SC108419) at 10 Queen’s Terrace, Aberdeen, AB10 1XL, and Standard Life Investments Limited registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Both companies are authorised and regulated in the UK by the Financial Conduct Authority.