Aberdeen Standard Investments (ASI) said this week that it is exploring the sale of its Nordic direct Real Estate business amid a real estate strategy review.
Neil Slater, deputy head of Private Markets and global head of Real Estate, said the sale is being considered due to a growing divergence between ASI’s international funds investing in the Nordic and the Nordic business focused on local clients.
Any potential sale would be specific to ASI’s direct Real Estate business in the Nordics only, the eventual make-up of which will be dependent upon any discussions held with interested parties, the company said in a statement.
The business manages roughly £2 bn (€2.4 bn), or about 5% of ASI’s total global real estate assets under management of £41 bn (€48.4 bn), as at 31 December 2019.
‘As part of the recent Real Estate Strategy Review, consideration was given to the future shape, structure and direction of the Real Estate business in EMEA,’ said Slater. ‘We have a strong, capable and experienced team in the Real Estate Nordics business focused on investing directly in the local Real Estate market for local clients. However, this is predominantly a domestic funds and asset management business servicing domestic clients. ASI’s ongoing development of pan-European, sector specific and international funds, themselves investing in the Nordic region and servicing global clients, has brought about a growing divergence in focus between these two parts of our business.’
He continued: ‘For clients invested in our Nordic direct real estate portfolios we are committed to finding the best alternative solution for the continued provision of high quality services.’
A potential sale will not impact on ASI’s overall focus on the Nordics, in terms of the pan-European real estate funds investing in the region. ‘The Nordics continues to offer attractive, long-term investment opportunities for global real estate investors,’ concluded Slater.
