Aberdeen Standard Investments and Ailon Group joint venture to create over 5,000 pioneering ‘micro living’ new homes across nordics
A partnership between global asset manager Aberdeen Standard Investments and Ailon Group, a specialist in the development of student housing and micro-living in the Nordic Region, now has over 2,000 units under planning or development, with plans for a another 3,000 units over the next three years.
The programmatic joint venture was established in 2017 with the intention of creating a scalable platform that would give ASI exclusive rights to develop micro-living schemes with an experienced partner.
The success of the platform has meant that the joint venture has become one of the first of its kind to introduce the micro-living concept into the Nordics on a significant scale.
The projects are a mix of new build and conversion schemes and are planned to be the first in a series of investments by the joint venture in micro-living in key Nordic cities that have growing and stable populations.
The schemes will target students, young professionals and corporate residents and will have access to study/co-working space and other social areas, creating vibrant communities. All of the schemes are located in attractive locations close to public transportation and local amenities. The majority of the projects will be completed during 2020-21.
After completion the assets will be managed directly by the joint venture’s integrated operating platform.
Micro-living has emerged in recent years as a way of creating homes whose design is geared towards compact living and by creating shared facilities that serve as an extended living room, creating connectivity and social communities.
Christian Schjødt-Eriksen, Fund Manager of the Aberdeen European Residential Opportunities
Fund (“AEROF”), which invests in the joint venture, Aberdeen Standard Investments commented:
“Space in the best Nordic cities is really at a premium and micro living is a good way for us to provide quality homes that people can afford, with facilities that people want, and in places where people want to live.
Micro living is a very new concept for the Nordics but, with the popularity of cities in the region only set to increase, it’s one that is here to stay. As such, the platform that we’ve created has real potential to grow.
At the same time, the assets we create offer institutional investors the opportunity to access stable incomes that have the potential to grow as rental prices increase over the long term from an area of the market that has significant potential.”
Andrew Dawson, Founding Partner of Ailon, commented:
“Micro-living has become an integral part of the overall asset allocation for institutional investors in Europe and there is a huge demand for this product in the Nordics.”
Jacob Cronstedt, Founding Partner of Ailon, continued:
“Social and demographic changes and more flexible employment conditions are reflected more strongly in the emerging micro-living asset class than in virtually any other current housing trend. The demand for living small is getting bigger and bigger. This is an effect of rising rents in large cities and an increase in autonomous lifestyles of young people. Demand for temporary, furnished apartments for students as well as young professionals has also increased. It has also become less important for the new generation of young people to own their home, and easier and more flexible not to have a mortgage, which is a big, long-term commitment. The Nordics also benefit from high quality of life and an acute housing shortage.”
Aberdeen Standard Investments
+44 (0)207 463 5809
Notes to editors
- About Aberdeen Standard Investments
Aberdeen Standard Investments (ASI) is a leading global asset manager dedicated to creating long-term value for our clients, and is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.
- With over 1,000 investment professionals we manage £519.4 billion as at 31 March 2018) of assets worldwide. We have clients in 80 countries supported by 50 relationship offices. This ensures we are close to our clients and the markets in which they invest.
- We are high-conviction; long-term investors who believe teamwork and collaboration are the key to delivering repeatable, superior investment performance. We are resolute in our commitment to active asset management.
- ASI is the asset management business of Standard Life Aberdeen plc, one of the world’s largest investment companies.
- Standard Life Aberdeen plc is headquartered in Scotland. It has around 1.2 million shareholders and is listed on the London Stock Exchange. The Standard Life Aberdeen group was formed by the merger of Standard Life plc and Aberdeen Asset Management PLC on 14 August 2017.
About Ailon Group
- Ailon is leading the development of student housing and micro-living communities in the Nordic Region. Ailon is an owner, developer and operator of micro-living and co-working with a primary focus on the Nordic markets. The Group also has operations in the UK and Germany.
- Ailon’s platforms are owned together with capital partners, consisting primarily of leading pension funds, sovereign wealth funds, and financial institutions. Present and recent developments and investments include 6,000 apartments and commercial units.
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