Provinsfastigheter has appointed Aberdeen Asset Management to manage a Danish-owned property portfolio in Sweden valued at EUR 300 mln.

Provinsfastigheter was previously part of the now restructured Allokton group, and the current majority owner is a consortium of several Danish financial institutions.

The portfolio is dispersed across Sweden, with a concentration in and around Stockholm and with an equal share of offices and residential properties. A significant proportion of the properties will require active management to reach their full potential. Consequently, in addition to the mandate to manage and optimise the total property portfolio, Aberdeen will also manage the financial administration, reporting directly to the board of directors, until the portfolio is ready to be sold.

The mandate takes effect on 1 April 2011. Earlier this month Aberdeen Asset Management was appointed to manage a Nordic property portfolio worth EUR 537 mln. The portfolio properties are mainly located in Denmark, Sweden and Finland and consist of retail and residential properties. The portfolio was previously managed by Danish property asset manager, Property Group.

Jens Erik Gravengaard, chairman of the board of Provinsfastigheter, said: 'Aberdeen's extensive skills in actively managing individual properties and large property portfolios have been decisive in our choice of manager. This is a very large portfolio where some of the assets will require further development and dedicated asset management. That in turn requires experience and in-house specialist property expertise.'

'I hope that other financial institutions can see the advantages of outsourcing to specialist management companies in order to optimise their portfolios,' added Tonny Nielsen, Aberdeen's Nordic head of Investment Management.