Aberdeen Asset Management has completed the long-awaited sale of its UK and European property arms to business solutions firm Arlington in a deal worth £50m.
AAM, which pulled out of talks to sell the businesses to British Land last year, was thought to be seeking a price closer to £100m for Aberdeen Property Investors and its international sister company APII.
But AAM chief executive Martin Gilbert says the aggregate cash sum paid by prop-erty fund advisers Arlington accurately “reflects the inherent value of the business” and its future prospects.
AAM, which is retaining its less capital-intensive Nordic property investment management division, will ask shareholders to approve the disposal at an extraordinary general meeting it plans to convene in the coming weeks.
If successful, AAM will use the cash to reduce its bank debt, which topped £180m last September. Gilbert says the move will also give the property companies access to the capital required to develop new investment products.
He says: “We believe Arlington is well positioned to grow the business significantly while ensuring that existing clients continue to receive first-class service.”