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Fund deal

ASI takes majority stake in £5bn real estate firm

Aberdeen Standard Investments golf

Aberdeen Standard Investments is making a step change (pic: Terry Murden)

Aberdeen Standard Investments has acquired a majority stake in a property fund manager as a first significant step change by the group’s new chief executive.

ASI is buying 60% of Mayfair investment boutique Tritax Management, a specialist logistics real estate fund manager with assets under management of £5.1 billion throughout the UK and Europe.

Eleven partners in Tritax are expected to share proceeds of more than £100 million from the deal which represents an enhancement of ASI’s evolving real estate offering.

Mr Bird, CEO of Standard Life Aberdeen, said: “Our growth strategy is built around our clients’ needs and there’s no doubt that our strong capability in private markets, particularly real estate, will be a differentiator for our business. 

“The transaction with Tritax is a compelling strategic fit for our business. It significantly enhances our already strong real estate franchise, in an area of the market which benefits from accelerating trends. It’s a great outcome for us, Tritax and our respective clients.”

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Tritax specialises in the logistics sector, such as large warehouses occupied by major online retailers, and manages two listed industrial logistics funds: Tritax Big Box REIT and Tritax EuroBox.

It said the long-term structural changes across the sector — such as the shift to online shopping, the importance of delivery capabilities and technological developments — continued to strengthen ongoing investment into this space.

Tritax’s management will lead the ASI Real Estate Global Logistics team and report to ASI’s Neil Slater, global head of real estate.

Mr Slater said: “Logistics is, and will remain, one of the most attractive income and capital growth sectors within real estate over the long term. 

“The ongoing impact of technological developments, the effect on supply chain management and, ultimately, the increasing customer demand for control over the delivery of goods and services makes this transaction a scalable and exciting opportunity.”

ASI runs £37 billion in real estate assets across the UK Europe and Asia. It has £455.6 billion in total assets under management.

It expects the Tritax deal to close in early 2021, subject to regulatory approvals.

It follows Mr Bird’s decision last week to put advisory business Parmenion up for sale.

Mr Bird, former global consumer banking at Citigroup, replaced Keith Skeoch as chief executive in September.



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