Arlington Securities, the property services and fund management business has agreed to buy the UK and Continental European businesses of Aberdeen Property Investors from Aberdeen Asset Management (AAM) for an aggregate cash deal of up to £50 million (e74m). It is expected that the acquisition will be completed by the end of the second quarter this year.
AAM retains ownership, however, of its successful Nordic property investment business.
The deal will see the formation of a new division of Arlington, Arlington Property Investors (API), which will manage £4.3bn of property assets for pension funds and other institutional clients as well as collective investment fund clients.
API will be headed by David Hunter, the chief executive of Aberdeen Property Investors, leading a team of some 150 employees.
API will continue the Aberdeen business providing investment solutions across a spectrum of investment products, from direct investments to property derivatives and partnerships. The business will continue to be headquartered in London, with offices in Glasgow and Amsterdam.
Patrick Deigman, chief executive of Arlington, said: “This is a logical next step for us as we further establish the fund management element of our business alongside property services. “The new division will provide us with the platform to expand our remit across the UK and internationally, and we are extremely pleased that David Hunter and his team will be joining us”.
In 2003, Arlington restructured its business from a traditional property company and established a fund management and services business. The existing Arlington investment vehicles have a gross asset value of approximately £830 million, and this acquisition will increase the group’s combined assets under management to over £5 billion.
Arlington was advised by Credit Suisse First Boston on the transaction.