DEGI, part of Aberdeen Property Investors, has completed its first investment in Japan by signing the sales contract for the fully let retail property “La Porte Shinsaibashi” in Osaka. The property, purchased indirectly through a real estate company for 90 million euros, will be added to the DEGI INTERNATIONAL open-ended property fund, which focuses on commercial properties worldwide.
The seller is a special purpose company, invested in an AIG Global Real Estate sponsored fund. DEGI has been advised by the institutional transaction team of CB Richard Ellis Tokyo.
“This investment marks our entry into Japan whilst increasing our exposure to the Asian property market. Our aim is to make further acquisitions in Japan and to build a diversified property portfolio that provides a stable basis for our involvement in Asia”, comments Malcolm Morgan, managing director at DEGI responsible for property acquisitions.
“We also plan to make investments in Asia’s dynamic growth markets, such as China and Singapore, where we see attractive opportunities for property investors. Currently, we are identifying promising acquisitions with the aim of building a significant Asian portfolio”, stresses Morgan.
Completed in December 2007, the building is situated in Osaka’s most prominent retail location, the Shinsaibashi quarter. Osaka is the second largest retail market in Japan behind Tokyo, in terms of both size and turnover. It is also the second largest city in Japan, behind Tokyo, in terms of GDP and the third largest in terms of population with 2.6 million inhabitants.
“La Porte Shinsaibashi” comprises approximately 3,900 m² of gross floor area over 2 ground floors and 8 upper storeys. The space is let to 6 firms on long-term leases including the flagship store of the Spanish fashion chain Zara, to whom about 42 % of the space has been let, and the restaurant chain Barbacoa, which is exceptionally popular in Japan. This latest acquisition in Japan is DEGI INTERNATIONAL’s second investment in Asia, having made an initial investment in South Korea in 2005. In total, the two buildings have a lettable area of approximately 19,000 m2, with a total value of around 130 million euros. Following this new investment in Osaka, DEGI INTERNATIONAL now has 5% of its property assets in Asia.
Background information
DEGI Deutsche Gesellschaft für Immobilienfonds mbH ranks among the biggest property fund companies in Germany and ever since its foundation in 1972 has been specialising in the management of property assets. Its product portfolio currently comprises two open-ended property funds for private investors, two open-ended property funds for institutional investors, one special property fund, plus two individual mandates. The company, with around 130 employees, manages a total of approximately 6 billion euros. DEGI’s current portfolio includes properties in 17 different countries. Since 27 March 2008, DEGI is part of Aberdeen Property Investors.
More information: www.degi.com
Aberdeen Property Investors is the specialist property division of Aberdeen Asset Management PLC and belongs to the top ten property investment manager globally, managing some 30 billion euros of property assets in Europe, Asia and North America through property funds, funds of funds and management mandates, Clients are primarily institutional investors such as life insurers and pension funds, served by more than 800 professionals at offices in eleven European countries and in Singapore, Hong Kong and Sydney.
More information: www.aberdeenpropertyinvestors.com
Aberdeen Asset Management PLC is an international investment management group that primarily handles assets for leading national and company pension funds, central banks and other financial institutions at 26 facilities worldwide. Aberdeen employs a total of 1,900 people in around 21 different countries around the globe, and with its investment centres in London, Philadelphia and Singapore covers the most important markets in the world’s major time zones. The group’s most important lines of business are stocks, bonds and property. Aberdeen has been listed on the London Stock Exchange since 1991, and is a FTSE-250 company.
More information: www.aberdeen-asset.com
Legal note:
All statements made in this press release are subject to error and topicality. All particulars relating to the future, especially, are non-binding. DEGI assumes no liability whatsoever for the information given and statements made here.