Aberdeen Asset Management has acquired a USD128 million commercial real estate portfolio from the TDC Pension Plan. TDC Pension Plan received 50% of the acquisition price in shares in an Aberdeen fund product and will become the largest shareholder amongst that fund’s existing institutional and professional investors. The remaining 50% will be received in cash.
Tonny Nielsen, Head of Investment Management, Nordic region, says: ”Not only are we pleased to welcome TDC Pension Plan as a major shareholder, but even more we are satisfied with the return potential of the fund for all investors.”
The acquired portfolio comprises 22 mainly office properties adding approximately 341.207 square feet to the existing 1,607,611square feet representing DKR665 million (USD128 million) of assets under management to the Fund. The acquired price reflects an expected long-term net direct yield of 7.4%.
Nielsen says: “We are also pleased that more institutional investors are moving from direct to indirect real estate investments and thereby diversifying their portfolio. 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.”
The majority of rental income is on long-term contracts and stems from the tenant TDC and so the Fund carries an even lower tenant risk. TDC is the leading communication solutions provider in Denmark and listed on the Copenhagen Stock Exchange.
Leif Stidsen, CEO of TDC Pension Plan, says: “Being a shareholder of a real estate fund instead of a direct owner of a property portfolio makes strategic sense to TDC Pension Plan. This is because we get higher potential returns through Aberdeen’s active management while also gaining exposure to a more diversified property portfolio.”