Standard Life Investments to reopen fund

Standard Life Investments has announced it will reopen its UK property fund within weeks, saying Britain’s commercial real estate market has stabilised.

Standard Life UK Real Estate was the first firm to suspend trading in its UK property fund this summer, amid fears that Brexit-spooked investors would scramble to ditch their holdings and prompt a further surge in redemptions.

The firm said it will lift the suspension at midday on Monday October 17, more than three months after investors were barred from buying or selling shares in the £2.7 billion UK Real Estate Fund.

“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,” the firm said in a statement.

The fund will reopen to trade just days after Henderson UK Property Trust lifts a suspension on its own property authorised investment fund (PAIF) on October 14.

Meanwhile, the Threadneedle UK Property Trust’s PAIF reopened for trade at midday yesterday.

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.”

Laith Khalaf, a senior analyst at Hargreaves Lansdown, noted there are “still some big funds” yet to resume trading, including Aviva’s property fund.

SLI closed its property fund in the wake of Brexit. It will reopen next month.