Aberdeen Standard Investments has named DEAS Group as the preferred bidder to acquire its Nordic direct real estate business.
If completed, the transaction would result in DEAS Group taking over the management of a portfolio of 132 properties.
These consist of office, warehouse/logistics, retail and residential buildings representing a value of €2.3bn.
The deal is subject to ASI completing consultations with relevant Swedish trade unions and procuring relevant internal board approvals.
No financial details were disclosed; but completion is expected at the end of Q1 or beginning of Q2 2021.
Not walking away
ASI said it remains committed to the Nordic region and will continue to have exposure across its pan-European and sector specific real estate funds.
Neil Slater, global head of real estate at ASI, said: “As part of the intended transaction, we will enter into a domestic asset management arrangement with DEAS Asset Management, enabling ASI to continue, as part of its international real estate strategy, to have an investment allocation to the Nordics.”
To facilitate this, ASI intends to appointment DEAS Group’s independent asset management subsidiary to manage its €1.7bn portfolio of Nordic assets.
Under the proposed deal, this would take the total assets managed by DEAS Asset Management on behalf of ASI to €4bn.
Acquiring the business from ASI will see DEAS Group expand into the Nordic market.
Henrik Jeppesen, chief executive of DEAS Group, said: “Our intention is to establish a pan-Nordic full-service provider within real estate that offers execution in all stages of the value chain for investors.”
The group expects to have around 90 real estate investment professionals operating from eight offices in Sweden, Norway, Finland and Denmark.