Aberdeen Asset Management has agreed to buy rival Goodman Property Investors – which has more than £7 billion of real estate assets under management – for £89 million ($176 million; €113 million).
The acquisition grows assets under management for Aberdeen Property Investors, Aberdeen’s property arm, by more than 42 percent to £24 billion – making it one of the world’s ten biggest property asset management firms, according to the firm.
Goodman’s portfolio comprises approximately 93 percent direc or indirect property investments in the UK. The deal expands Aberdeen’s position in the UK and at the same time strengthens its presence on the ground across Europe and Asia.
“A significant UK platform was the missing piece in Aberdeen Property Investors' European business,” said Aberdeen Property Investors chief executive Rickard Backlund in a statement. “The deal also strengthens our presence in Asia, a region which is likely to attract increased interest from investors looking to diversify their property portfolios.”
Earlier this year, Sweden-based Aberdeen Property Investors, whose parent group is listed on the London Stock Exchange, paid €110 million for German-based property investment manager Deutsche Gesellshaft fur Immobilienfonds (DEGI). Acquired from Dresdner Bank, the deal boosted its assets under management by 50 percent.