Aberdeen Asset Management Weighs up Sale of $196M Property Arm

LONDON-Aberdeen Asset Management is prepared to sell its £125 million ($196 million) property arm rather than float it to raise much needed cash.

The fund manager is currently embroiled in a much wider financial scandal centred on the £13 billion ($20.4 billion) industry in split capital investment trusts and which is currently being investigated by regulatory bodies. As the scandal grew, the value of split capital trusts fell and Aberdeen was forced to look elsewhere to raise capital and cut its £250 million ($393 million) debt pile. The preferred option earlier this year was the £100 million ($157 million) flotation of its property investment operation, API.

But now Aberdeen has confirmed that since it unveiled these proposals it has received at least 20 approaches about buying API. Analysts believe that a trade sale could raise more than a flotation and could raise quicker.