Aviva Investors is to reopen its property trust five months after trading was suspended in the fallout from the Brexit vote.
The only property trust to remain closed following the raft of suspensions earlier this year as spooked investors rushed to the exit, dealing in the £1.5bn Aviva Investors Property Trust will resume on 15 December.
Mike Luscombe, co-manager of the fund, will retire at the end of January, with co-manager Andrew Hook – who has managed the fund since March 2015 – assuming the role of lead manager.
The managers have avoided forced sales during the suspension period instead implementing a structured sales programme, selling 11 properties totalling £212m between the EU referendum and 17 November, with “prices achieved broadly in line with market valuation changes”.
Ed Casal, CEO, Aviva Investors Real Estate, says: “We are pleased to announce the resumption of dealing in the Aviva Investors Property trust and appreciate the patience of our investors while dealing was temporarily suspended. We have undertaken an orderly sales programme to rebuild liquidity. This has enabled us to obtain the best value for the asset sales while continuing to actively manage the remaining properties in the trust.”
“Despite the recent uncertainty in the market, yields on property remain relatively attractive in a low interest rate environment. We believe there is a convincing place for the asset class within a balanced portfolio for long-term investors.”