Aberdeen Standard Investments Selects DEAS Group to acquire Nordic Direct Real Estate Business

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.

 Neil Slater, Global Head of Real Estate, Aberdeen Standard Investments

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 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 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*.

DEAS Asset Management, the independent subsidiary within the group, will manage the new activities and consequently conduct asset management of a property portfolio totalling EUR 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.

 Henrik Dahl Jeppesen, CEO, DEAS Group

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

Published 30. November 2020

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