18 February 2019
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Scottish asset manager Aberdeen Standard Investments (ASI) has expanded further its Asia Pacific real estate capability 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.
"The acquisition is highly complementary, harnessing the combined investment skillsets of both firms across the entire real estate value chain," said the firm.
For investors seeking diversification, Asian real estate offers attractive risk-adjusted returns, with less correlation to broader market volatility"
Hong Kong-headquartered real estate manager Orion Partner , formed in 2000, is one of Asia's first multi-strategy asset management firms. The company's focused teams manage private equity, real estate, credit and hedge funds supported by a core operations and administrations team. Its private equity funds focus on China, Japan, and Korea while its public equity funds invest throughout East Asia.
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.
Hugh Young, head of Asia Pacific, Aberdeen Standard Investments 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 are growing, being able to offer a truly one-stop real estate solution is an integral part of our growth strategy."
ASI has worked with Orion Partners in Asia Pacific for more than a decade. It has teams in Japan, South Korea, Hong Kong and Singapore.
Kang Puay Ju, head of real estate Asia Pacific and global head of real estate multi-manager at ASI, added: "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 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.
In January, ASI invested $13m in insurance technology startup Singapore Life. The investment allows it to participate in the long-term growth of the next generation life insurance company as it expands its business across the Southeast Asian region, the company said in an official release.
