- The Aviva Property Trust will reopen for investment from 12 noon on 15 December 2016
- 11 properties totalling £212m have been sold since the EU referendum
- Andrew Hook will be sole manager from January 2017, having co-managed the fund since March 2015
Aviva has lifted the suspension on its UK Property Trust to allow clients to trade with effect from 12 noon on 15 December 2016.
Trading in the fund was suspended on 5 July 2016 as they received a large number of requests from investors to sell their investment. Property funds hold a cash buffer to satisfy sales, which is usually sufficient to ensure the managers are not forced to sell properties. However, the increase in requests after the EU referendum was such that the cash buffer was reduced to a level the managers were not happy with.
Aviva therefore temporarily stopped investors selling (or buying) units in the fund to afford the managers time to find suitable buyers for some of their properties. If forced to sell quickly they could be required to accept less than fair value, to the detriment of remaining investors.
Since the EU referendum, the managers have sold 11 properties totalling £212m. Cash is now at a level the managers feel is sufficient to meet normal redemption requests. While Aviva hope to keep the fund open, any significant increase in requests from investors to sell their holding could cause the fund to re-close.
Instructions to buy or sell units in the fund can be placed online or via the phone. If you wish to place a deal online in time for the first valuation point your instruction needs to be received before 8am on 15 December. Any regular savings contributions accumulated since the fund closed will not automatically be invested. To invest any accumulated regular savings contributions or to restart regular savings into this fund, please log into your account and place an instruction online.
Change of manager
Mike Luscombe has announced his intention to retire in January 2017. Andrew Hook, who has co-managed the fund since March 2015, will continue as sole manager. He has over 15 years’ industry experience and will be aided in sourcing, developing and managing properties by an experienced and well-resourced team.
Our latest views on the property sector are available here.