Real Estate
Aviva Investors To Lift Property Fund Suspension

Aviva’s asset management business said long-term prospects in the UK’s commercial property market are strong.
Aviva Investors plans to resume trading in its UK property portfolio, becoming the last firm to do so after high levels of market uncertainty in the wake of the Brexit vote triggered a wave of property fund suspensions.
Dealing in the Aviva Investors Property Trust, which was initially suspended on 5 July, will resume at the midday valuation point on 15 December, the firm said in a letter to investors. The fund sold 11 properties totalling £212 million ($262 million) between the European Union referendum vote and 17 November 2016 to raise liquidity.
“We have undertaken an orderly sales programme to rebuild liquidity. This has enabled us to obtain the best value for the asset sales while continuing to actively manage the remaining properties in the Trust,” said Ed Casal, chief executive of Aviva Investors Real Estate.
“Despite the recent uncertainty in the market, yields on property remain relatively attractive in a low interest rate environment. We believe there is a convincing place for the asset class within a balanced portfolio for long-term investors.”
Meanwhile, Mike Luscombe, co-manager of Aviva Investors Property Trust, is set to retire after 28 years at the company. It gave no details of a replacement.