A 26 storey private residential tower, the acquisition, on behalf of the Aberdeen Property Trust, pushes the number of private rented residential units overseen by Aberdeen in the UK to nearly 500, it said, roughly, 6% of the UK IPD Residential Index.
The group said it plans to grow its UK residential assets by £500m over the next five years, with a focus on the private rented sector.
Ed Crockett, Aberdeen property fund manager said: “This purchase is part of a wider commitment which Aberdeen has to the private rental sector… The city’s population is growing at a rate most would associate more with an emerging market than a developed one, which is one reason that private residential units are an attractive investment for us.”
According to Gerry Ferguson, manager of the Aberdeen Property Trust, added that the acquisition adds a long-term, secure income stream to the fund.
“Traditionally, residential yields aren’t always that attractive, but currently they offer a gross yield around 5% and a net yield around 3.75%. That looks rather attractive when bond yields are as low as they are,” he said.
He added: “The other benefit is that it adds further diversity to the income stream.”
