Aberdeen buys German fund manager Degi

UK-listed Aberdeen Asset Management has acquired German fund manager Degi from Dresdner Bank for EUR 110 mln, the two parties announced last week. Aberdeen said the acquisition will strengthen the position of its property investment division, Aberdeen Property Investors, in the strategically important German market, increasing assets under management by EUR 6.4 bn to approximately EUR 20 bn. For its part, Degi will be able to draw on Aberdeen’s local presence in property markets around the world and capitalise on the growth potential offered to its international business, as part of the enlarged group.

Degi will retain both its current management and brand name. The deal is expected to be finalised by April, following regulatory approval.

Commenting on the deal, Rickard Backlund, CEO of Aberdeen Property Investors, said: 'Germany is the largest property fund market in Europe and is a logical step in our expansion plans, reflecting our intention to have a strong local presence in all our key markets. Degi is a leading provider of open-ended property funds in the German market. Its established position with institutional and private investors and the highly complementary nature of our product ranges and investment regions make Degi the ideal partner for Aberdeen.'

Bärbel Schomberg of DEGI’s management board said: 'Our existing client relations and products will not be changed by this transaction and the new owner. Degi and our clients will benefit from being part of a major, independent, international real estate investment manager able to provide local expertise in markets around the world. The acquisition will also help us build on our position in the German market and expand our investor base internationally.'