Aberdeen Standard Investments (ASI) intends to nearly double its investments in residential property over the next five years according to its co-head of real estate Pertti Vanhanen.
The expansion of the asset manager’s residential property investments is already underway with the successful the recent second close of the first pan-European residential property fund of its kind.
The Aberdeen Standard Pan-European Residential Property Fund (ASPER) launched with an initial investment of €355.5 million from eight investors in the Netherlands, Luxembourg and Switzerland in March 2018.
It has since completed a second close in October that raised a further €42.7 million of commitments from investors in Ireland, South Korea and the Netherlands. The total equity raised since the Fund launched now stands at €398.2 million with the intention being to reached €1.5 billion over the medium term.
The successful launch of ASPER and increase in residential property investment is part of an ambitious plan launched last year by the asset manager to increase its total real estate assets under management by €43 billion, from the current level of €51 billion, by 2025.
Aberdeen Standard Investments co-head of real estate Pertti Vanhanen commented:
"The success of ASPER is a sign of the progress that we are making on our strategy. It’s been clear for some time there demand for quality rental property is outstripping demand in European cities. We were not alone in spotting that trend but the scale of our business and depth of our experience has allowed us to create a really compelling product for our clients.
It is an important element in our wider plan to increase the real estate assets we own by €43 billion by 2025. That plan consists of six elements, one of which is to strengthen our already significant presence in Europe.ASPER is an important part of us achieving this element of our plan.
Our other aims are to defend our strong UK market position, build our Asia Pacific business, establish a presence in the Americas through a corporate acquisition, grow and develop our multi-manager business and build out our listed capabilities.
The progress we are making is encouraging and we already enjoy a scale in Europe that is almost unparalleled by our competitors. But the real estate world, and what our clients demand of their investments in it, are changing rapidly so we must continue to adapt.”
ASI is Europe’s second largest real estate investment manager, managing £43.9 billion of real estate assets across UK, Europe and Asia. It’s current residential portfolio includes over 15,000 homes across Europe and the UK with an additional 3400 units under construction and a combined total value of almost €6.5bn.
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Notes to editors
- Private renting is set to rise in the UK by around 24% by 2022. In many European countries such as Germany, about half of the population rents privately and the market for rented accommodation is a mature asset class in its own right. Denmark, Sweden, The Netherlands, Switzerland and France also have burgeoning rental markets.
- Rapid population growth in European cities means that supply of good quality rented accommodation is in great demand and this is driving a surge in investor appetite. By advance-funding some developments we will help meet that demand while providing homes that meet the needs of tenants.
- This is the perfect time to focus on the private rented residential sector and use the opportunity to capture secure long-term rental streams for our investors. We’re aiming to invest a further €5 billion in the sector over the next five years.
- Our dedicated team of more than 280 real estate investment professionals manages more than 1,600 real estate assets worldwide, and are based in 18 global offices (including London, Edinburgh, Frankfurt, Paris, Stockholm, Copenhagen, Amsterdam, Hong Kong, Singapore and Boston). (30/06/18)
- One of the largest investments so far for ASPER was the purchase of over 800 privately rented apartments in Helsinki. This was the Fund’s first acquisition in Finland and took the total gross commitments to €450 million, invested across five residential schemes incorporating 1,430 homes, within four European capital cities.
- Located within the Helsinki Metropolitan Area, the 824 contemporary one and two-bedroom apartments are close to the city centre with excellent transport access. They have been built and equipped to a high standard, with the majority incorporating a sauna and glazed balcony. With a current total occupancy rate of 96%, the apartments span 26 buildings covering a total of 45,678 sq m.
- 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 £557.1 billion* (US$735.5 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.
- 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.
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