Aberdeen Standard Investments (ASI) sells its Nordic direct real estate business to Danish property management company DEAS Group, six months after announcing it was considering a possible divestiture.
DEAS Group will take over the management of 132 real estate assets valued at approximately 2.3 billion euros, and ASI will entrust the company with the management of an additional 1.7 billion euros of assets on its behalf.
ASI said it remains “engaged in the Nordic region” and will maintain exposure through its pan-European and sector real estate funds.
DEAS Group has been selected as the preferred bidder to acquire the business and acquisition and the new mandate will see DEAS Group expand into other Nordic markets and double its total assets under management by € 4 billion. to 8.2 billion euros.
Neil Slater, Global Head of Real Estate at ASI, said: “We are delighted to partner with the DEAS Group to create a long-term solution for our national real estate business in the Nordic countries.
“Our main goal was to find a high quality asset manager who continues to provide superior service to clients invested in Nordic direct real estate portfolios.
“In addition, as part of the proposed transaction, we will enter into a national asset management agreement with DEAS Asset Management allowing ASI to continue, as part of its international real estate strategy, to have an investment allocation in Nordic countries.
“After a thorough due diligence process, the DEAS group was a clear choice from a customer, cultural and real estate perspective.
Henrik Dahl Jeppesen, CEO of DEAS Group, said: “Our intention is to establish a full-service, pan-Nordic real estate provider that delivers execution at all stages of the value chain for investors.
“We will build on local expertise and best practices across the Nordic region. “
The proposed transaction is subject to the completion of ASI’s consultations with the Swedish unions and the approval of the relevant internal boards.