Aviva Investors to re-open property trust
According to reports, Aviva Investors is to re-open its property trust – five month after trading was suspended, following the fallout from the Brexit vote.
Aviva was the only property trust to remain closed following the raft of suspensions this July as spooked investors closed its £1.5bn property trust. However, it is has now confirmed that the trust will resume dealing at midday on December 15th, earlier than expected.
Property funds have boosted cash reserves following the raft of closures. These cash holdings deliver low returns, leading to fears investors may have to accept lower returns on the funds in exchange for being able to easily sell their holdings.
Aviva said that during the fund’s suspension after the Brexit vote, the managers sold 11 properties for a combined £212 million.
‘The temporary suspension has allowed us to be selective with our orderly sales programme, and ensure the retained portfolio remains robust and well diversified,’ it said.
‘There have been no forced sales, and we have focused on taking the right time to obtain the best value on sales, whilst retaining core assets and maintaining a balanced UK commercial property portfolio.’
The fund has lost 4.7% this year, amid a difficult environment for UK property, although that loss is lower than those incurred by rival funds from Aberdeen, M&G, Standard Life and Henderson.
Written by: The Team | On: November 23, 2016