abrdn’s Living business breaks €10bn milestone as it acquires Paris PBSA asset

abrdn, the global investment company, has further expanded its Living business within its real estate team with the acquisition of a student/co-living asset in Cergy, in the suburbs of Paris. This latest acquisition takes abrdn’s total residential investments to more than €10bn.

The asset was purchased on behalf of investors in the €1.7bn abrdn Pan-European Residential Fund (aPER), one of the largest residential real estate portfolios in the market in Europe. The fund is highly diversified, with 49 assets across 30 cities and 10 countries and a strategy backed up by abrdn’s expert global research team.

Over the past 12 months, abrdn has won £1bn in new third-party real estate mandates – of which a significant proportion was for investment into the residential sector

In October, the company announced that it had been awarded a mandate by Dutch pension fund PGGM to manage a portfolio of 3,300 rental homes in Japan, underscoring the global scale of abrdn’s real estate capabilities.

Marc Pamin, CEO of Living at abrdn, said:

“We believe the tide has turned for global real estate and see the residential sector as one of the key beneficiaries in this new cycle. Living is one of our highest conviction calls for long-term real estate allocation because of the ongoing supply and demand imbalance and demographic change. As this latest acquisition shows, we also see strong potential in European purpose-built student accommodation (PBSA). Low provision rates in countries like France, Germany and Italy suggest significant growth potential across the continent.

At abrdn, we have been strengthening our Living business over almost three decades, growing the team, expanding our presence globally and building out our research capabilities.

As one of Europe’s largest residential managers, we believe we are uniquely placed to identify and secure the best opportunities which we believe are likely to perform well over the coming years.”

abrdn’s latest Living asset is in Cergy, a town in the suburbs of Paris. The Cergy campus is one of the biggest in the Ile-de-France region after Paris, with train connections to the capital in 30 minutes. Cergy has around 13 higher education and research institutions that welcome circa 30,000 students.

The property comprises a student residence, with 551 rooms of approximately 13,758 sqm, and 678 sqm of common areas including a living area, a gym, music room, restaurant, gardens and roof terrace.

As an active participant in the global real estate market for over 50 years, abrdn has extensive experience in managing direct and indirect real estate investments, real estate multimanager services, listed real estate, and real estate debt solutions.

As of 30 September 2024, abrdn managed more than £32 billion in real estate investments and around 1,000 assets globally.

Ends

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Head of Campaigns and Media, abrdn

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Notes to editors

About abrdn

• abrdn is a global investment company that helps clients and customers plan, save and invest for the future. Our purpose is to enable our clients to be better investors.
• abrdn manages and administers £506.7bn of assets for clients (as at 30 September 2024).
• Our strategy is to deliver client-led growth. We are structured around three businesses – Investments, Adviser and interactive investor – focused on their changing needs.
• The capabilities in our Investments business are built on the strength of our insight – generated from wide-ranging research, worldwide investment expertise and local market knowledge.
• Our teams collaborate across regions, asset classes and specialisms, connecting diverse perspectives and working with clients to identify investment opportunities that suit their needs.
• As at 30 September 2024, our Investments business manages £368.2bn on behalf of clients - including insurance companies, sovereign wealth funds, independent wealth managers, pension funds, platforms, banks and family offices.