Goodman sells GPI to Aberdeen
6 May 2008

Written by Sophie Baker

Goodman, the global integrated property group, has entered into a conditional sale and purchase agreement for the sale of its wholly owned subsidiary Goodman Property Investors (GPI) to Aberdeen Asset Management plc (Aberdeen) for £109million.

The agreement has an additional earn-out consideration of up to £12.5million. GPI provides direct and indirect property portfolio services including separate mandates and pooled funds across all real estate asset classes in the UK and other international markets. Following completion, and subject to FSA approval, GPI will change its name to Aberdeen Property Investors (API).

The existing GPI staff and team will transfer to Aberdeen. John O’Connor will become managing director of the UK for API, and Andrew Smith will become managing director of Fund Management and Indirect Funds for API. Both will report to API CEO Richard Backlund.

Backlund commented: “We have followed the continued growth and expansion of GPI for some time. We are very pleased now to be acquiring the business and building on the global platform and product offer it has established. GPI brings with it a world class management team and is highly complementary to our business at every level.”

The transaction, he said, will bring their assets under management to over £24bn globally, an increase of over 42 per cent. This will place API as the second largest property investment manager in the UK, and in the top ten globally.

Michael O’Sullivan, European CEO of Goodman believes Aberdeen will partner Goodman in taking GPI to its next stage of development.

“Our business in Europe has grown considerably over the last two years and during this period the GPI business has developed a significant global customer base and expanded product offering to meet the market demand for specialist investment management. We conducted a strategic review with the GPI management team last year and it was clear that finding a specialist strategic partner was the best way to maximise the business potential.”