AMWatch

Aberdeen turns towards RE investments in Denmark

The British asset manager has a positive view of the Danish real estate market, which might pull more Aberdeen investments, predicts by country head. New report shows decline.

According to Henrik Kruse, Aberdeen's country head for Denmark, the AM is in ooking into the Danish RE market. | Photo: PR / Aberdeen

Head of Nordic Distribution and Office Head Denmark at Aberdeen Standard Investments’ Danish unit Henrik Kruse has no doubt the real estate market is the key to the company’s future success.

“Covid-19 has greatly affected the hotel business, retail, shopping centers. On the other hand, the real estate market still has a lot of potential, because there’s a tendency towards people moving to the major cities to study, work or live,” says Henrik Kruse to EjendomsWatch in the wake  of the company’s 2019 report.

The year’s results landed on DKK 62.9m (EUR 8.4m) against DKK 41.6m in 2018. It should be mentioned that due to brexit, the company has split up, so an Irish unit has been established, and activities have been handed over from the Danish company to the Irish one.

Summed up, this means Aberdeen’s Danish business stands to gain something in the form of an activity handover of DKK 69.3m, calculated from the bottom line.

If you withdraw the Irish winnings, this leaves Aberdeen with a deficit of DKK 8m for its ordinary services. Kruse doesn’t find the result particularly applicable.

“You can’t conclude this is the level of activity. That’s my conclusion. It all involves some accounting technicalities,” Kruse states while pointing out he is entirely satisfied with 2019.

The company’s top line plummeted to DKK 59.7m in 2019 from DKK 100.9m in 2018.

High prices

In recent years, one of the things Aberdeen has garnered attention for is buying more logistics properties and housing properties.

"We’ve viewed a lot of properties, and we’ve made bids on a lot of properties that were outbid at a level we thought was too high”

Henrik Kruse, country head at Aberdeen

Most recently, Aberdeen bought Hotel La Tour in Aarhus, which will be converted into apartments with a move-in date in the beginning of 2023.

At the same time, the Aberdeen has started up some major new apartment projects in Køge and Aalborg, and a major apartment project will be initiated in Silkeborg towards the end of the year, but the AM could easily have involved itself even further,” Kruse tells ejendomsWatch.

"We’ve viewed a lot of properties, and we’ve made bids on a lot of properties that were outbid at a level we thought was too high,” the country head explains, and he states the price is essential this year.

“We’re interested in the RE market and logistics at the right prices,” Kruse points out.

He underlines the company expects to raise both the top and bottom line considerably, but the country head refrains from giving any actual figures.

Scandinavia for sale

In May, it became apparent that Aberdeen is planning to sell the Nordic business trading directly with RE investments.

“It’s the Nordic business with direct RE investments that’s put up for sale, but the Danish business is an exception to begin with,” Head of Direct Real Estate in Denmark Bjarke Bendix Cloos says to EjendomsWatch.

The reason why the Danish business is not on offer lies with Danske Bank.

“The Danish business contains a particularly large mandate for Danica, and thereby Danske Bank, so to start with, we’ve exempted Denmark,” says Bendix Cloos.

The Nordic business manages RE worth DKK 17bn, but it hasn’t been sold as of yet.

Kruse tells EjendomsWatch it’s still the plan to sell the Nordic business without selling the Danish one, and it won’t necessarily be years before a deal is in place, according to Kruse.

English Translation: Nielsine Nielsen

(This article was provided by our sister media, EjendomsWatch)

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Aberdeen Standard Investments takes over problematic high-rise real estate project in Denmark

 

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