On July 1, 2011, Aberdeen Property Fund Denmark P/S (the Fund) acquired a 90 million commercial property portfolio from the TDC Pension Fund.
TDC Pension Fund received 50% of the acquisition price in shares in the Fund and will become the largest shareholder amongst the existing institutional and professional investors. The remaining 50% will be received in cash.
Tonny Nielsen, CEO for Aberdeen Asset Management Denmark A/S and Head of Investment Management, Nordic region comments: "Not only are we pleased to welcome TDC Pension Fund as a major shareholder to the Fund, but even more satisfied with the return potential of the fund for all investors."
The acquired portfolio comprises 22 mainly office properties adding approximately 104,000 m² to the existing 490,000 m² representing DKK 665 million (90 million) of assets under management to the Fund. The acquired price reflects an expected long-term net direct yield of 7.4%.
Tonny Nielsen comments further: "We are also pleased that more institutional investors are moving from direct to indirect property investments and thereby diversify 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 Fund also comments: "Being a shareholder in the property fund instead of a direct owner of a property portfolio makes strategic sense to TDP. This is because we get higher potential returns through Aberdeen's active management while also gaining exposure to a more diversified property portfolio."
Upon completion the Aberdeen Property Fund Denmark P/S will have total assets of 855 million.
Source: Maitland
