UK asset management company Schroders has agreed to acquire Aareal Asset Management (AAM), the real estate fund management arm of the German financial institution Aareal Bank, for €28 million ($36 million).
As part of the transaction, Schroders has agreed to acquire certain assets owned by Aareal in AAM’s underlying funds that are currently valued at €21.4 million. In addition, the UK asset manager may also purchase additional assets held by AAM for up to €30 million if those assets are not sold prior to March 31, 2007.
The acquisition of AAM comes as Schroders is actively building its global property business. Earlier this year, Schroders launched two new real estate fund of funds, the $250-million European Fund I, which will invest in unlisted vehicles across Europe, and the $250-million Continental European Fund I, which will be aimed at UK investors looking to invest outside their home country. The firm also launched two new public securities fund, one targeting the global market and another focused on Asia.
“This acquisition is an important component of our strategy to offer international property products to our clients base,” William Hill, head of property for Schroders, said in a statement.
Schroders’ property business currently has assets under management of £7.6 billion, approximately 6 percent of the firm’s total assets under management of £122.8 billion.