Aberdeen Property Fund Denmark has bought a €65m (£59m) portfolio of properties in Denmark, recruited a major new shareholder to its fund and taken over a further €200m (£182m) of properties under management from a Danish bank.
Aberdeen Property Fund Denmark P/S bought a €65m (£59m) portfolio of properties in Denmark from the Danish Pension Fund for Engineers.
The Danish Pension Fund for Engineers will receive 60% of the payment in cash, and 40% in shares in the Aberdeen Property Fund Denmark, becoming a major new shareholder for the fund. The net initial yield is 6%.
Tonny Neilsen, CEO for Aberdeen Property Investors Denmark A/S, said: ‘This acquisition expands and strengthens the fund’s portfolio.’
The portfolio of seven office properties totals 430,556 sq ft.
Søren Kolbye Sørensen, chief executive of the Danish Pension Fund for Engineers, said: ‘Being a shareholder in the property fund instead of direct owner of fewer single properties makes strategic sense to DIP [the fund]. This is because we get higher potential returns through Aberdeen’s active management while also increasing the diversification of our exposure to property.’
Danish Pension Fund for Engineers has 9% of its assets under management of €3.2bn (£2.9bn) to property and intends to allocate between 6-10% to property in future.
Aberdeen Property Investors Denmark has also taken over part of the property management organisation ebhladministration from ebhlbank, a Danish lender which was bailed out by the Danish central bank in September, adding €200m (£182m) of properties bringing total assets under management to €1.2bn (£1.1bn).
Neilsen said: ‘We are pleased to have been able to raise capital in this market.
'Active management is what Aberdeen is all about. Regardless of difficult market conditions, our track record shows that the professional investor can create excess returns by divesting properties to the right property managers.’