LONDON: Columbia Threadneedle Investments said it’s planning to restart trading in its UK property funds after they were frozen following a surge in redemption requests in the wake of Britain’s decision to leave the European Union.
The suspension of the Threadneedle UK Property Authorised Investment Fund, along with a feeder fund, will be lifted on Sept 26, the company said yesterday.
Since trading was halted in July, the firm has either sold or agreed to sell 25 propertiesfor a total £167mil (US$221.5mil).
Prices were about 1% lower than valuations before the Brexit referendum, it said.
“We saw animal spirits drive unprecedented levels of redemptions,” Don Jordison, managing director of property at Columbia Threadneedle, said in the statement.
“Much of the earlier commentary now appears slightly irrational and more informed reflection has settled the market.”
Seven UK property funds, overseeing about £18bil of assets, were forced to suspend trading after the June 23 vote sparked a wave of redemption requests.
Aberdeen Asset Management Plc reopened its £3.2bil UK property fund in July after cutting the value of its assets by at least 17%.
Threadneedle will reopen its fund without redemption penalties. Threadneedle said it had identified about £100mil of potential property sales before the referendum. – Bloomberg
http://www.thestar.com.my/business/business-news/2016/09/13/threadneedle-to-unfreeze-uk-property-fund-after-brexit-outflow/
