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


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, Gerry Ferguson, head of UK property pooled funds, 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.