Aberdeen to manage €300 million of Danish distressed property assets in Sweden (DK/SE)

Aberdeen Asset Management announces that it has been appointed to manage a Danish-owned property portfolio in Sweden to a value of €300 million (SEK 2.7 billion) on behalf of Provinsfastigheter AB.

Provinsfastigheter was previously part of the now restructured Allokton group, the current majority owner is a consortium of several Danish financial institutions.

The portfolio is dispersed across Sweden, however with most of the properties in and around Stockholm and with an equal share of offices and residential properties. A significant proportion of the properties will require active management to reach their full potential. Consequently, in addition to the mandate to manage and optimize the total property portfolio, Aberdeen will also manage the financial administration reporting directly to the board of directors, until the portfolio is ready to be sold.

Jens Erik Gravengaard, Chairman of the board of Provinsfastigheter, AB comments: "Aberdeen's extensive skills in actively managing individual properties and large property portfolios have been decisive in our choice of manager. This is a very large portfolio where some of the assets will require further development and dedicated asset management. That in turn requires experience and in-house specialist property expertise."

Tonny Nielsen, Aberdeen's Nordic Head of Investment Management, comments: "We are very pleased about Provinsfastigheter's confidence in Aberdeen's ability to actively manage properties and we look forward to delivering solid results. Furthermore, I hope that other financial institutions can see the advantages of outsourcing to specialist management companies in order to optimize their portfolios."

The mandate takes effect on April 1, 2011.

Source: Maitland

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