Aberdeen Asset management has joined forces with Treasury Holdings to create a new 1 billion pound property company called Real Estate Opportunities (REO).
The objective of the company is to provide shareholders with an annual dividend yield of 8.8%, and capital growth over the 10 year life of the fund. Aberdeen and Treasury will continue to own 45% of the equity of Real Estate Opportunities, the remaining 55% will be listed on the London and Dublin stock exchanges.
REO is taking over UK property company Jermyn Investment Properties, and acquiring the 50% of Castle Market Holdings that Jermyn does not already own.
The £5.96 sterling per share offer for Jermyn represents a 24.2% premium on the share price before talks were announced on 30th March.
Treasury will manage REO's Irish portfolio while Aberdeen will look after the UK properties and high income portfolio.
Treasury CEO Maurice Harte said the new venture would provide Treasury with the advantages of a public company, and he welcomed former senior civil servant Paddy Teahon to the board of REO.
Treasury Holding was established by Richard Barrett and Johnny Ronan in 1989, and now has over £1 billion of property investments.
