Standard Life鈥檚 merger with Aberdeen Asset Management will create a new 拢40bn (鈧�46.3bn) real estate investment manager.
Combined, the two companies will represent the UK鈥檚 biggest asset management firm and the country鈥檚 largest in terms of global real assets under management (AUM).
91传媒在线 figures, for the end of 2016, show managed 拢22.2bn in real estate (including listed property and debt) and Aberdeen managed 拢17.9bn.
The merger is expected to take the global real estate AUM beyond that of 鈥� the UK鈥檚 largest 鈥� which stood at 鈧�34.5bn in the middle of last year, according to IPE Real Estate鈥檚 most recent .
Standard Life and Aberdeen鈥檚 equivalent numbers stood at 鈧�22.3bn and 鈧�24.5bn, respectively.
has been interpreted as a response to trends in the wider investment world, but, as part of the move, Standard Life and Aberdeen will need to manage the coming together of two similarly-sized real estate businesses.
A source close to the merger said the two real estate arms would be complementary, since Standard Life had a bigger real estate presence in the UK and Aberdeen was larger in continental Europe.
European activities make up the majority of both companies鈥� real estate activities. According to IPE Real Estate鈥檚 Top 100 survey, Standard Life and Aberdeen managed 鈧�21.8bn and 鈧�23.8bn in Europe, respectively.
In contrast, Standard Life managed 鈧�282m in the Americas and 鈧�235m in Asia-Pacific, while Aberdeen managed 鈧�131m in the Americas and 鈧�536m in Asia-Pacific.
Both companies have been growing their real estate businesses in Asia-Pacific. Standard Life from Partners Group to head its new Singapore office.
Aberdeen, meanwhile, including Finland鈥檚 Keva for its latest Asia-Pacific multi-manager fund.
The tie-up with Standard Life comes less than four years after Aberdeen . That merger saw Aberdeen鈥檚 real estate AUM rise from 拢16bn to 拢23.5bn.
The merger was of Aberdeen鈥檚 then global head of property Andrew Smith.
Aberdeen鈥檚 real estate business is currently led by Pertti Vanhanen, while David Paine oversee鈥檚 real estate at Standard Life.
Branding for the merged entity has yet to be revealed.
