Standard Life to reopen UK Real Estate Fund

David Paine

Edinburgh-based Standard Life Investments (SLI) said it will reopen its suspended UK Real Estate Fund and associated feeder funds from 12 noon on Monday, October 17.

The SLI UK Real Estate Fund was one of a number of funds to suspend trading on July 4 2016.

SLI said trading was suspended “in order to protect the interests of all investors in the fund following an unprecedented level of redemptions” following the UK’s vote to leave the EU.

“We subsequently implemented a controlled and structured asset disposal programme in order to raise sufficient liquidity to meet future redemptions and work is ongoing to ensure the fund is well positioned for markets in the long-term,” said SLI.

“We now believe the commercial real estate market has stabilised and that the adequate level of liquidity achieved will allow the suspension to be lifted.”

SLI has assets under management of £269 billion and real estate assets of at least £15.5 billion.

David Paine, head of real estate at Standard Life investments said: “In the immediate aftermath of the EU referendum result, redemptions from retail investor property funds increased dramatically whilst property transactions reduced significantly.

“During the period of suspension the fund has been able to restore liquidity through an orderly disposal of assets.

“We are pleased with the progress made and the removal of the Market Value Adjustment, and able to announce the reopening of the fund next month.

“The Standard Life Investments UK Real Estate Fund invests in a diverse mix of prime commercial property.

“Its lower risk positioning should therefore be beneficial for performance at times of market stress and uncertainty and continues to offer a stable and secure income, with a distribution yield of 4.04%.

“In our opinion, as the search for yield intensifies within a world of low interest rates and nominal growth, the outlook for UK commercial real estate returns and income remains attractive.”

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.