Aberdeen Standard Investments (ASI) is acquiring a 60% interest in Tritax Management, which manages £5.1bn (€5.57bn) of European logistics assets and runs listed funds Tritax Big Box REIT and Tritax EuroBox.
ASI said it would “initially acquire a 60%” interest, “with both parties aligned on the future direction and growth trajectory of the business”.
The transaction, which is expected to close early next year, is structured to ensure “the long-term retention of existing Tritax clients, employees and partners along with the attraction of new ones”, it said.
ASI said the deal “signals a step change” for the company as it looks to provide “deep sector specialism for its clients” and to become “a leading logistics real estate manager in the UK and Europe, ensuring it is ‘future fit’ and focused on parts of the real estate market that are set to benefit from long-term structural change”.
The management of Tritax will lead ASI Real Estate’s Global Logistics Team, reporting to the global head of real estate, Neil Slater.
Tritax has experience in investing across the logistics sector, from large warehouses occupied by major online retailers to ‘last mile’ urban logistics.
Tritax said it would continue to service existing mandates and the tie-up with ASI would “provide opportunities for existing clients and support its long-term growth objectives”.
“Logistics is, and will remain, one of the most attractive income and capital growth sectors within real estate over the long term,” said Slater.
“The ongoing impact of technological developments, the effect on supply chain management and, ultimately, the increasing customer demand for control over the delivery of goods and services makes this transaction a scalable and exciting opportunity.
“Importantly, it provides the potential to grow and further diversify future earnings through greater investment capability and expertise, scale and credibility in this sector.
“This transaction reiterates our commitment to evolve our real estate offering to ensure it develops with changing industry dynamics and client needs. I have a great deal of respect for Tritax and its achievements. We look forward to working with our new colleagues.”
Henry Franklin, chief operating officer of Tritax Management, said it was a “significant milestone for Tritax”, adding: “ASI’s expertise and global reach will complement our leading industrial logistics focus.”