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«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 £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 £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 clientsa 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 £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» (CS della Società).
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