Aberdeen Standard Investments has bolstered its Asian real estate capabilities with the acquisition of $900m Asia real estate investment management firm Orion Partners.
The transaction adds to Aberdeen Standard’s already strong £44bn global real estate franchise with the management of $900m (£709m) worth of direct real estate investments in Asia for international institutional investors.
ASI’s global real estate department also benefits from Orion’s direct real estate team and established track record in Asia which it says “harnesses the combined investment skillsets of both firms across the entire real estate value chain”.
The move comes as ASI has previously signalled its ambition to develop and distribute a wider range of Asia Pacific products to meet rising global demand for “new active” investment solutions.
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Hugh Young, head of Asia Pacific, said: “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 is growing, being able to offer a truly one-stop real estate solution is an integral part of our growth strategy.”
Meanwhile head of real estate Asia Pacific and global head of real estate multi-manager, Kang Puay Ju (pictured) said Orion Partners’ culture was in-line with ASI’s and that it has long-admired its “client-focused and transparent approach”.
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She added: “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, 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 mindset and a passion for innovation, this further enhances our ability to meet investors’ evolving needs.”