The suspension will be lifted on 26th September 2016 at 12pm and the fund’s depositary, Citibank Europe PLC, UK Branch and the FCA have been informed of the decision to lift the suspension.
The fund was suspended in July to protect existing investors after market instability post-Brexit led to significant outflows in retail property funds.
Don Jordison, managing director of property at Columbia Threadneedle Investments, said he was pleased to be opening the fund again.
“We will continue to closely monitor conditions to ensure the interests of our investors in the fund are paramount at all times.
“In the short period following the referendum we saw animal spirits drive unprecedented levels of redemptions from daily dealt open-ended property funds.
“Much of the earlier commentary now appears slightly irrational and more informed reflection has settled the market.”
Don felt that any effects of the Brexit vote on the overall UK economy – good or bad – would take many months if not years to transpire and some time after that for the property market.
“In the current climate of low growth and low returns from other asset classes, and with the UK property market yielding 5%, it is our view that UK property offers a significant in-built risk premium for long-term investors.
“The yield on the Threadneedle PAIF is currently 6.6% against proven valuation (as at 31st July 2016).
“We believe well-diversified, high-yielding property portfolios should be considered as part of a balanced portfolio for a long-term investor.”
The Threadneedle fund invests in physical UK commercial property such as warehouses, shopping centres, high street shops and offices.
Since July, the fund has completed, exchanged or agreed to sell 25 properties totalling £167m across all UK regions and property types, with no forced sales.
Leave a comment