Aviva moves property funds back to offer pricing

Aviva Investors has moved its £1.3 billion Property Trust and its Property investment fund back to offer pricing.

The group was among several that switched their property funds to bid pricing in late 2007 and 2008 following widespread redemptions and falling asset prices in the sector.

Philip Nell, the manager of both vehicles, says he has sold off non-core assets, leaving him with a balanced portfolio of more than 70 properties.

Current market pricing offers excellent long term opportunities, but with a lack of sellers, competition for deals is increasing, especially at the prime end of the market, he says.

But not being a forced buyer has put him in a strong position, Nell adds.

The funds moved back to monthly valuations on July 31.

M&G moved its Property portfolio back to offer pricing last week, while both M&G and New Star have begun to report positive inflows into their property funds.

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