Aberdeen Standard Investments expands its Asia real estate offerings for global investors

Aberdeen Standard Investments expands its Asia real estate offerings for global investors

Real Estate Asia

Completes bolt-on acquisition of Orion Partners

Aberdeen Standard Investments (ASI) has expanded further its Asia Pacific real estate capability with the acquisition of Orion Partners*, an Asia real estate investment management firm. The move bolsters ASI’s investment strength in Asia real estate and adds to its market-leading US$56.3 billion (£43.9 billion) [1] global real estate franchise.

Orion Partners manages approximately US$900 million (£709 million) [2] of direct real estate investments in Asia for international institutional investors seeking access to the region’s growing markets. The transaction expands ASI’s global real estate capabilities and offerings with the addition of Orion Partners’ direct real estate team and established track record in Asia. The acquisition is highly complementary, harnessing the combined investment skillsets of both firms across the entire real estate value chain. It signals ASI’s ambition to develop and distribute a wider range of Asia Pacific products to meet rising global demand for “new active” investment solutions.

Hugh Young, Head of Asia Pacific, Aberdeen Standard Investments commented: “For investors seeking diversification, Asian real estate offers attractive risk-adjusted returns, with less correlation to broader market volatility. Having established a track record across equities, fixed income, private equity and real estate multi-manager investing in Asia Pacific over the years, this is a good opportunity for us to build out our regional real estate presence. At a time when global investors’ allocation to alternatives and real assets are growing, being able to offer a truly one-stop real estate solution is an integral part of our growth strategy.”

Kang Puay Ju, Head of Real Estate Asia Pacific and Global Head of Real Estate Multi-Manager, Aberdeen Standard Investments said: “Our real estate multi-manager business has invested with Orion Partners in Asia Pacific for more than a decade; it is a team we have known well and admired for its client-focused and transparent approach, much in line with ASI’s own culture. The addition of the on-the-ground direct real estate teams in Japan, Korea, Hong Kong and Singapore will deepen our local insights and broaden our product suite across the region. The platform’s specialist skillsets and investment experience in offices, aged care and retail properties will prove invaluable to the growth of our real estate offerings. We are excited to welcome everyone on board.”

David Paine, Global Co-Head of Real Estate, Aberdeen Standard Investments added: “Today marks the next stage in developing our real estate business by expanding our footprint in Asia Pacific. The acquisition of Orion Partners reinforces our position as a leading real estate manager delivering world-class investment capability. With one of the largest and most sophisticated real estate investment offerings globally, a client-led mind-set and a passion for innovation, this further enhances our ability to meet investors’ evolving needs.”

With a deep understanding of the risks and drivers of return across real estate markets, ASI offers a comprehensive spectrum of global real estate investment solutions for investors, ranging from direct real estate, listed real estate, real estate multi-manager, to commercial real estate debt. The enlarged global business will house over 300 talented real estate professionals, managing over 1,600 properties worldwide from 20 local offices.

The terms of the transaction are not disclosed.

*100% acquisition of Orion Partners Holdings Limited (“OPHL”) and Orion Partners Services Inc. (“OPSI”), collectively “Orion Partners”.

[1] Source: Aberdeen Standard Investments, as of 30 June 2018

[2] Source: Orion Partners, as of 31 December 2018