View more on these topics

Aberdeen to sell £250m of London property as fund faces redemptions

Property-Commercial-Real-Estate-Building-Mortgage-600x385.jpg

Aberdeen Asset Management is reportedly looking to sell £250m in London property as it faces redemptions from its UK commercial property fund in the aftermath of Brexit.

The asset manager has appointed CBRE as brokers for a £150m property at 355 Oxford St, according to sources close to the deal, City AM reported this morning.

Strutt & Parker is reportedly also acting for the firm to sell a £100m office block at 10 Hammersmith Grove. It has approached six buyers to gauge interest, with three putting in a bid, the paper says.

Aberdeen AM says it does not comment on individual assets when it is in the process of buying or selling.

However head of UK property pooled funds Gerry Ferguson says: “Following a period of higher than normal redemptions from the fund after the EU referendum result and the suspension of other funds’ trading, the fund is now seeking to rebuild its liquidity position.  

“A limited number of properties are being marketed and we will seek the highest prices achievable for our investors as is our normal practice.”

The asset manager has temporarily suspended trading on its fund until midday Wednesday as it implements increased exit fees of 17 per cent in response to investors trying to sell out of the fund.

More than half the £25bn property fund sector is now suspended with Columbia Threadneedle Investments and Henderson Global Investors last week suspending dealing in property funds worth £5.3bn.

They follow in the footsteps of M&G Investments, which temporarily suspended trading in its £4.4bn M&G Property Portfolio and its feeder fund, while SLI stopped trading on its £2.7bn UK Real Estate fund in response to redemption requests, and Aviva Investors suspending trading on its £1.9bn Property Trust.

Recommended

Aberdeen Gilbert Martin Gilbert 700x450

Aberdeen investors pull out of trades after exit fees added

Aberdeen Asset Management says many trades submitted last week on its property fund have been withdrawn by investors following the application of new exit penalties. Chief executive Martin Gilbert says the fund will extend its suspension on trading for two more days following requests from two platforms. Last week the property fund announced it was increasing […]

Exit sign

Aberdeen adds 17% exit penalty to property fund

Investors in the Aberdeen’s UK property funds will face a 17 per cent exit fee, as more than half of the IA sector suspends trading due to an increase in redemptions following last month’s Brexit vote. The asset manager confirmed it had one of the highest levels of liquidity compared to similar funds and had sold all […]

flemingcampbell

Aberdeen poaches Columbia Threadneedle boss as distribution head

Columbia Threadneedle EMEA chief executive Campbell Fleming has left the firm to join Aberdeen Asset Management as global head of distribution. Campbell, who joined Threadneedle from JP Morgan in 2009 as head of distribution, succeeds Aberdeen’s John Brett who stepped down from the role late last year. In his new role, Campbell will be responsible […]

HM-Treasury-500x320.jpg
6

Treasury made no plans for Brexit

A senior Treasury official has told MPs the Treasury has done no contingency planning for the UK’s vote to leave the EU. The Financial Times reports while the Treasury liaised with the Bank of England and the FCA, its work on Brexit was limited to two reports setting out the negative economic implications of the […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment