Aberdeen Asset Management has completed one of the largest ever single purchases of existing stock in the private rental sector in the UK with the acquisition of 180 Stratford High Street for around £60 million and announces its intention to grow its residential assets in the UK by £500 million over the next five years.

180 Stratford High Street is a 166 unit, 26 storey private residential tower overlooking the Olympic Park in Stratford, London. The location has benefited from significant improvements in services since the 2012 Olympic Games kick started massive regeneration in the area including extensive new transport, retail and public services. The Olympic Park Legacy Company has been charged with bringing new investment, homes and jobs to the area, using the Park’s facilities as a catalyst for further regeneration.

The purchase comes as Aberdeen plans to grows its residential assets in the UK by £500 million over the next five years. Aberdeen already manages around £1.2 billion in residential assets outside the UK as at 28 February 2015. About half of the properties managed are currently under development and will represent around 7000 units once complete. Aberdeen manages around £20 billion in real estate assets globally as at 31 December 2014.

The purchase of 180 Stratford High Street takes the number of private rented residential units overseen by Aberdeen in the UK nearly 500, equating to around 6% of the UK IPD Residential Index, and which are valued at some £110 million as at 28 February 2015. It follows the recent purchase of Devell House, a 51 unit residential tower in Manchester, which completed earlier this year.

The property is being acquired on behalf of the Aberdeen Property Trust. Gerry Ferguson, Fund Manager of the Aberdeen Property Trust, comments: “This is the Fund’s largest investment into the private rented sector and it will provide a strong sustainable income stream to the fund . It also helps with further risk reduction which has been one of the hallmarks of the Trust over the ten years which we’ve been managing it and we anticipate adding more high quality private rented properties in the future.”

Ed Crockett, Property Fund Manager, comments: "This purchase is part of a wider commitment which Aberdeen has to the private rental sector. The property is in one of the most vibrant and affordable locations in London. The city’s population is growing at a rate most would associate more with an emerging market than a developed one, which is one reason that private residential units are an attractive investment for us. Long term asset managers like Aberdeen are ideal landlords for private residential tenants. They bring the full weight of their experience managing real estates assets to bear on the growing pivate residential sector and combine it with the professionalism which our own clients demand.”

Russell Chaplin, Chief Investment Officer for Property, comments: "This is the latest in a line of private residential purchases which Aberdeen has made across Europe on behalf of its clients.”

“The case for the sector to grow, particularly in Europe’s winning cities, is clear with the number of people predicted to rent property set to increase over the coming years. We believe there is plenty of opportunity to grow the amount of assets we own in the years to come.”

For further information contact:

Guy Nicholls
Aberdeen Asset Management
Telephone: 02074635809
Mobile: 07810050539
Email: guy.nicholls@aberdeen-asset.com