Aberdeen Property Investors Denmark, through its Aberdeen Property Fund Denmark, has acquired the commercial property portfolio of the Danish Pension Fund for Engineers DIP. The acquisition is valued at EUR 65 mln, reflecting a net initial yield of 6%.
Aberdeen Property Investors Denmark, through its Aberdeen Property Fund Denmark, has acquired the commercial property portfolio of the Danish Pension Fund for Engineers DIP. The acquisition is valued at EUR 65 mln, reflecting a net initial yield of 6%.
Under the deal, DIP will receive 40% of the acquisition price in shares in the fund and will become a new shareholder alongside existing institutional and professional investors. The remaining 60% will be paid for in cash.
The portfolio comprises seven office properties (measuring some 40,000 m2 in total) in addition to DKK 487.5 mln (EUR 65 mln) of assets under management. As most of the rental income from the properties comes from public tenants, the fund carries a low tenant risk, Aberdeen said. The company expects to be able to increase the value of the assets through active management.
Tonny Nielsen, CEO of Aberdeen Property Investors Denmark, said: 'This acquisition expands and strengthens the fund's portfolio and we are also pleased to welcome DIP as a shareholder to the fund.'
Soren Kolbye Sorensen, CEO of DIP, commented: 'Being a shareholder in the property fund instead of direct owner of fewer single properties makes strategic sense to DIP. This is because we get higher potential returns through Aberdeen's active management while also increasing the diversification of our exposure to property.'
