significant impact on financial markets, a number of fund managers have suspended transactions into and out of their property funds. Aviva, Standard Life, L&G join rush to suspend UK property funds Independent valuation firms have said it is impossible to accurately value property given the major economic uncertainty due to …
Dealing has been suspended in the 1.7 billion pounds ($2.02 billion) Standard Life Investments UK Real Estate Fund and the 1.1 billion pounds Aberdeen UK Property Fund… Funds run by Standard Life Investments, Aberdeen, Aviva Investors, Legal & General and BDO were suspended on Wednesday, following two closures on … Covid-19 is causing great economic uncertainty, hitting all of these businesses, and also reducing the number of investment transactions which provide evidence for property valuations.“This means that valuers can no longer assess the value of properties with a high degree of certainty.
Lockdown Edinburgh ‘has seen world’s biggest fall in workplace activity’Sky broadband down: Dundee, Glasgow and Aberdeen affected by internet outageThe £1.7 billion Standard Life Investments UK Real Estate Fund and the £1.1bn Aberdeen UK Property Fund, which are both listed on the London market, have been suspended.A spokesperson for Aberdeen Standard Investments said: “Following the introduction of ‘material uncertainty’ clauses into valuations by UK property fund industry valuers, we have suspended dealing in our two open ended UK property funds and their feeder funds.“Markets around the world have experienced huge disruption as Covid-19 spreads and trading in the UK property market is being severely impacted. The £1.7 billion Standard Life Investments UK Real Estate Fund and the £1.1bn Aberdeen UK Property Fund, which are both listed on the London market, have been suspended.
Under these conditions property funds need to suspend while this extraordinary situation lasts, in order to ensure that investors, mostly long-term pension savers, are protected. As a result the funds’ independent valuers have informed us it is not currently possible to provide accurate and reliable valuations for certain assets.“We will aim to lift the suspension as soon as confidence returns to the market and there is more certainty regarding asset valuations, taking into account the best interests of customers and investors.”Paul Richards, managing director of the Association of Real Estate Funds (AREF), said: “Investing in UK property is an investment in hotels, offices, shops, warehouses, and restaurants up and down the country. Trading in the £1.7 billion Standard Life Investments UK Real Estate Fund and £1.1 billion Aberdeen UK Property Fund has been suspended after Covid-19 plunged markets into chaos. Strict FCA regulations apply, in order to ensure that all investors are treated fairly.”This website and its associated newspaper are members of Independent Press Standards Organisation (IPSO) Dealing has been suspended in the 1.7 billion pounds ($2.02 billion) Standard Life Investments UK Real Estate Fund and the 1.1 billion pounds Aberdeen UK Property Fund, it said in a statement.
“As a result the Funds’ Independent Valuers have informed us it is not currently possible to provide accurate and reliable valuations for certain assets, including the properties held in the Funds.” The suspensions follow similar action this week by Aviva Investors, Kames Capital and Janus Henderson. Why is this happening? Standard Life UK Real Estate Income Feeder: 12 noon Tuesday 17 March: Threadneedle UK Property Authorised Trust (Feeder) 12 noon Tuesday 17 March *The M&G Feeder of Property Portfolio fund was suspended in December 2019 for different reasons, find out more here. LONDON, March 18 (Reuters) - Aberdeen Standard Investments said on Wednesday it had suspended trading in two UK property funds after volatile markets made it tough to value their assets, joining a growing list of peers to do so.
($1 = 0.8411 pounds) (Reporting by Simon Jessop, Editing by Lawrence White)