Aberdeen Standard Investments (ASI) plans to increase its €6.5bn residential portfolio by 31% in the next four years.
Pertti Vanhanen, ASI’s co-head of real estate, said the company intends to ”significantly increase its investments” in residential property by a further €2bn by 2022.
The expansion of the asset manager’s residential property business is already underway. Earlier this year the newly-launched Aberdeen Standard European Residential Property Fund (ASPER) received initial investments of around €350m from eight investors. The fund has since completed a second close in October that raised a further €42.7m.
The manager said the total equity raised since the fund launched now stands at €398.2m with the intention being to reach €1.5bn in assets under management over the medium term.
ASI said the successful launch of ASPER, and other funds in Europe, and the planned increase in residential property investment is part of an ambitious plan launched last year by the asset manager to double its total real estate assets under management from the current level of €49bn by 2025.
Vanhanen said: “The success of ASPER is a sign of the progress that we are making on our strategy. It’s been clear for some time that 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.”
Vanhanen said a big part of ASI’s strategy is to strengthen its presence in Europe by launching new products and winning more mandates.
“ASPER is helping is deliver on that element of our six part plan.”
David Paine, Aberdeen Standard Investments co-head of real estate, said: “Our other aims are to build on our strong UK market position, organic and inorganic growth opportunities in direct real estate in both Asia Pacific and the Americas and the growth of our real estate multi-manager and listed REIT strategies.
“We are also working with our colleagues supporting real estate debt strategies and multi asset products such as the upcoming launch of the Global Sustainability Trust.”
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