Henderson Global Investors has confirmed it will reopen the its UK Property PAIF and Feeder fund next month.
The group says good progress in asset sales has enabled re-establishment of a liquidity buffer within the fund, as had keeping a diversified portfolio with a strong tenant base and asset mix.
The fund will open on 14 October, but clients will be able to request redemptions from this Wednesday.
In the period since dealing in the PAIF and Feeder funds was suspended 23 assets have either been disposed of or are under offer to be sold, a firm’s spokesman says.
The fund is to maintain a cash weighting in portfolio at 20 per cent by the time it’ll re-open.
In its latest fund review in August, the firm reduced the fair value adjustment on the suspended fund from 5 per cent to 3.5 per cent.
In a note on the firm’s website, Henderson said the £3.5bn fund, which was suspended on 5 July due to “extraordinary” redemption requests post Brexit, would stay suspended and receive “a further” review within the next 28 days. Assets in the fund dropped £400m from £3.9bn at the end of May to £3.5bn a month later.
Commenting on the re-opening decision, Ainslie McLennan the co-manager of the funds says: “We are pleased with the pricing attained on the assets sold in the period since 23 June 2016, with the majority of sales exceeding 31 December 2015 valuations, and comfortable that this was achieved without compromising the diversification and performance potential of the remaining property portfolio.
“The focus remains on holding a strong portfolio of defensive, core assets with a mix of robust tenants on long leases across all sectors.
“The portfolio provides an attractive net historical income yield of 3.2 per cent, which in the form of contractual rental income offers a steady income stream and remains attractive relative to bonds and equities.”