Aberdeen Asset Management has bought a 26-storey residential tower overlooking the Olympic Park in London as it continues with its plans to invest £500m (€702m) private-rented housing in the UK.
The acquisition of 180 Stratford High Street for £60m, takes its private-rented sector (PRS) portfolio to £110m, following an earlier acquisition of a residential tower Devell House in Manchester.
Aberdeen announced its plans to move into the emerging institutional sector last year. The company already manages £1.2bn in residential assets outside the UK, half of which are under development.
Institutional asset manager Long Harbour sold the 166-unit tower in Stratford, London to the Aberdeen Property Trust.
The fund’s manager Gerry Ferguson said: “This is the fund’s largest investment into the private-rented sector and it will provide a strong sustainable income stream to the fund. It also helps with further risk reduction.”
Ed Crockett, property fund manager at Aberdeen, said: “This purchase is part of a wider commitment which Aberdeen has to the private rental sector. The property is in one of the most vibrant and affordable locations in London.
“The city’s population is growing at a rate most would associate more with an emerging market than a developed one, which is one reason that private residential units are an attractive investment for us.
“Long-term asset managers like Aberdeen are ideal landlords for private residential tenants.”