Aberdeen to add €1.2bn to German assets

Assets managed in Germany by Aberdeen Deutschland are set to rise significantly, as the group makes a renewed commitment to expanding both its funds business and its exposure to residential project development, according to a recent statement by the giant UK-based investor.

Aberdeen currently manages €3.1bn in Germany for institutional investors, via seven property Spezialfonds and several other real estate mandates. It now plans on adding €1.2bn of assets over the next three year, boosting total assets under management to €5bn, according to Aberdeen Germany boss Hartmut Leser.

Aberdeen was a significant player in the German open-ended funds sector before the wave of funds closures blighted the sector during the financial crisis. Aberdeen was forced to unwind four funds, including the big public mutual funds Degi Europa and Degi International, whose remaining assets have been transferred to custodian keeping. Leser indicated there were no plans for setting up further open-ended funds as part of the new expansion.

Over the first half of this year, Aberdeen received new equity commitments of €260m, and over the past 12 months has drummed up nearly €700m, of which €500m are targeted for residential funds, including residential project development. “These commitments plus debt capital give us a current investment war-chest of €1.2bn,” said Michaela Ruhl, Aberdeen Germany manager for residential funds. "This is a huge advantage. Careful sifting through of potential assets based on our own proprietary research is one thing. But the right timing is equally important, and we're able to execute this optimally, because we can draw down the capital immediately."

In March, Aberdeen launched its first closed fund for a German institution with a target volume of €300m, with further funds in the pipeline. Work has also started on a new multi-investor housing fund, which may be diversified with mixed-use assets, especially retail, or project funding, Leser said. Aberdeen is also thinking about launching a European residential fund, which would invest in Germany, the UK, Scandinavia, the Netherlands and Denmark, he added.