will look to reopen trading in its 拢2.91bn (鈧�3.47bn) SLI UK Real Estate Fund in the final quarter of this year.
David Paine, head of global real estate at , told journalists in London today that the firm is looking to lift the open-ended fund鈥檚 trading suspension in an 鈥渙rderly鈥� manner.
The manager suspended trading of its property authorised investment trust (PAIF), which is backed by institutional and retail investors on 4 July, two weeks after the UK鈥檚 vote to leave the European Union.
鈥淭he picture today is much calmer,鈥� Paine said. 鈥淥r focus is on reopening the fund in the fourth quarter.鈥�
Paine said Standard Life Investments was 鈥渕aking good progress鈥� in assessing liquidity levels.
He declined to say how many assets have been sold by the fund, which launched in 2004. Forced sales, he said, can lead to an 鈥渙versized discount鈥� for buyers.
鈥淲e were flooded with offers from opportunistic buyers鈥� in the weeks following the UK鈥檚 referendum on 23 June, Paine said.
Managed by George Shaw, the fund owns 124 properties spread geographically and by sector, with an average value of 拢19.9m.
Henderson Global Investors is reopening its property fund on 14 October following 鈥済ood progress in asset sales鈥� and having been suspended since 6 July. 鈥檚 fund will reopen on 27 September, while will resume trading this month. and funds remain suspended.
Paine said that, despite debate over the performance of open-ended funds, he would like to see the choice for investors between such vehicles and listed property maintained.
鈥淚nvestors are looking for different things,鈥� he said.
Standard Life Investments, he said, had been prepared for outflows in the months leading up to the referendum but had 鈥渘ot anticipated to what extent liquidity would be eroded鈥�.
Anne Breen, head of real estate research, said the company鈥檚 expectations for the UK real estate market had deteriorated following the referendum.
鈥淲e anticipate some erosion of the jobs created since the establishment of the European Union,鈥� she said.
In pre-Brexit analysis, Standard Life Investments had forecast that a vote to leave the EU could result in up to 10,000 job losses in London鈥檚 City financial district.
鈥淟ondon will be more impacted than other markets,鈥� she said, adding that slower economic growth for the UK would mean lower 鈥渟ingle-digit鈥� returns for real estate.
The firm sees opportunity in the south east UK鈥檚 industrial sector and 鈥漛est-in-class鈥� retail property.
