Fund commits £60m
Dougray Smith advises in Aberdeen Standard PRS deal
Edinburgh-based property agent Dougray Smith was among the advisers in Aberdeen Standard’s latest investment into the private rented sector.
Aberdeen Standard Pan-European Residential Property Fund is committing a further £60 million to the PRS development in the English Midlands.
The investment is the fund’s first in the UK and represents an initial yield of 4.25%. It will forward fund the redevelopment of a 10-storey post office building in Birmingham into 259 apartments for private rental.
The development is in partnership with Lionel House Developments, a development vehicle of specialist residential property firm Stamford Property Investments. Lionel House was represented by Edinburgh agent Dougray Smith and Teacher Stern. The apartments will be marketed and managed by JLL.
The Birmingham investment is the latest investment in the European residential sector, an area of the market in which Aberdeen Standard Investments intends to invest a further €2 billion by 2022. It also has ambitions to double its total real estate assets under management from the current level of €49 billion by 2025.
Ed Crockett, fund manager at Aberdeen Standard Investments, said: “This deal underlines our confidence in the UK private rented sector, which is set to increase by around 24% by 2022.”
Dowbrae, Knight Frank and Hogan Lovells represented Aberdeen Standard Investments whose residential portfolio includes more than 15,000 homes across Europe and the UK with an additional 3,400 units under construction and a combined total value of almost €6.5 billion.