In 2011, Aberdeen Asset Management’s Nordic property transactions totalled €330 million. The transactions were carried out on behalf of the Aberdeen property funds as well as our discretionary mandates. With a share of 83% the office segment saw the highest demand, followed by retail (9%), logistics/industrial (5%) and other (3%). At a country level the highest activity was in Norway and Denmark.
Aberdeen’s preliminary estimates indicate that transaction volumes in the Nordic region fell from € 20.2 billion in 2010 to € 19.2 billion in 2011. After sound activity growth in the first half of the year, the market slowed down after summer. In particular the fourth quarter, which normally is very busy, recorded a lower than expected transaction volume except for the Danish market, which experienced a very strong end of 2011 due to a handful of very large single deals.
Tonny Nielsen, Nordic Head of Investment Management, comments: “We are content to have executed profitable transactions in what was a challenging year economically and one where market volume fell.
“Looking ahead, as many European countries struggle with weak state finances, investors might find that the Nordics is a safer haven to invest in than most other Western countries. In the medium term, we believe strong public finances will lead to a higher economic growth potential in the Nordics in comparison to the euro-zone. We forecast an annual GDP-growth rate of 1.8% for the Nordic region in the period 2012-2016, compared to 1.3% for the euro-zone. This translates into a stronger rental growth forecasts and higher total return forecasts.”
In property alone, Aberdeen manages some €9 billion of assets in the Nordic region through property funds and separate account mandates.