Aberdeen Asset Management PLC (Aberdeen), the UK-listed global asset manager, today announces that it will acquire Goodman Property investors (GPI) from the Goodman Group for an initial cash consideration of approximately €114 million (£89 million). The acquisition is expected to be earnings enhancing in the first full year of ownership.
The acquisition will enhance the position of Aberdeen Property Investors, the specialist property investment division of Aberdeen, as one of the largest property fund managers globally. GPI is one of the largest property fund managers in the UK with assets under management (AuM) in excess of €8.9 billion (£7 billion) as at 31 March 2008.
Aberdeen Property Investors’ AuM will increase by over 42% to approximately €30 billion (£24 billion), transforming it into the second largest property investment manager in the UK and a top 10 global player (based on AuM).
Crucially with some 93% of GPI's AuM invested, directly or indirectly, in UK property, the acquisition will give Aberdeen Property Investors significant critical mass in the important UK market. The UK currently accounts for only a small proportion of Aberdeen Property Investors’ AuM. As well as providing a UK platform, GPI manages a complementary range of products and shares a similar investment philosophy. The combined businesses are expected to benefit from economies of scale and from opportunities to cross-sell a broad and comprehensive product range to a wider client base.
The transaction is consistent with Aberdeen Property Investors’ strategy to have strong local resources in all its key markets in order to offer clients a wide range of attractive investment vehicles for international property exposure. The acquisition of GPI extends and strengthens Aberdeen Property Investors’ on-the ground presence, across Europe and Asia. It will also create an even stronger position in the fast growing property fund of funds business, where both Aberdeen Property Investors and GPI have been leading the development in Europe and Asia.
The acquisition follows on from Aberdeen’s successful acquisition of DEGI, a leading provider of open-ended property funds in the German market earlier this year. DEGI added some €6.4 billion (£5 billion) to assets under management and has strengthened Aberdeen’s position in the key German market. Post acquisition an estimated 21% of Aberdeen’s AuM will be in property with 34% in equities and 45% in fixed income; providing Aberdeen with greater balance in its operations and mix of assets under management.
Rickard Backlund, chief executive officer of Aberdeen Property Investors, comments:
“The acquisition of GPI is a logical step in cementing our position as a leading global property asset manager. A significant UK platform was the missing piece in Aberdeen Property Investors’ European business. In GPI we are getting a highly regarded management team and a complementary range of products we can grow. 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.”
Upon completion, subject to FSA approval, GPI will change its name to Aberdeen Property Investors.
END
For further information please contact:
Rickard Backlund, CEO, Aberdeen Property Investors,
+ 46 8 412 80 60, rickard.backlund@aberdeenproeprtyinvestors.com
Charlotte Walsh, Maitland
+44 (0)207 379 5151 or +44 (0)7813 889 660
Victoria Trench, Maitland
+44 (0)207 379 5151 or 07799 132 634
Notes to Editors
About Goodman Property Investors
GPI is the largest independent property fund manager in the UK with 160 staff, of which 130 are based in the UK, and offices in London, Glasgow, Amsterdam and Paris as well as representative offices in Hong Kong and Sydney. GPI is a provider of direct and indirect property portfolio services, including separate mandates and pooled funds, across all real estate asset classes in the UK and increasingly globally. As at 31 March 2008, GPI had AuM in excess of €8.9 billion (£7 billion), of which approximately 85%. were in separate mandates and 15% in collective funds. GPI has a broad and predominantly institutional client and has an excellent record of client retention.
GPI has a strong and consistent track record across all its key products. It has been recognised by industry awards such as "UK Property Manager of the Year" by Pension and Investment Provider Awards 2007 and "Specialist Asset Manager of the Year" by Funds Europe Awards
2006. Its Two Rivers Limited Partnership fund was also awarded the "UK Specialist Fund Performance" by EuroProperty Investment Awards 2007.
About Aberdeen Property Investors
Aberdeen Property Investors, the specialist property division of Aberdeen Asset Management PLC, is one of Europe’s leading investment managers specialising in property, with more than €20 billion of assets under management through property funds, funds of funds and management mandates in Europe and Asia. Clients are primarily institutional investors such as life insurers and pension funds, served by our some 700 professionals at offices in eleven European countries and in Singapore. Our mission is to facilitate international investment exposure to property by offering a comprehensive range of investment products and services, all supported by a structured investment process and local active management. In 2007, we were named leading investment manager for the Nordic and Baltic region in the Euromoney Liquid Real Estate Awards.
About Aberdeen Asset Management PLC
Aberdeen Asset Management PLC (Aberdeen) is an international investment management group managing assets principally on behalf of leading national and corporate pension funds, central banks and other financial institutions from its 24 offices located around the world. Aberdeen employs 1,500 staff world-wide in some 19 countries, including investment centres in the three main time zones through London, Philadelphia and Singapore. The Group's areas of activity are principally equities, fixed income and property. Total group assets under management and advice were €134.6 billion (£107.3 billion) as at 31 March 2008. Listed on the London Stock Exchange since 1991, Aberdeen is a FTSE-250 company with a market capitalisation of €1.1 billion.
Issued and approved by Aberdeen Asset Managers Limited, on behalf of Aberdeen Property Investors, authorised and regulated by the Financial Services Authority.