Columbia Threadneedle reopens dealing in retail property fund

Columbia Threadneedle is to lift the temporary dealing suspension on the Threadneedle UK Property Authorised Investment Fund (Threadneedle PAIF) and its feeder fund, the Threadneedle UK Property Authorised Trust, on 17 September 2020.

The GBP1.0 billionn Threadneedle PAIF temporarily suspended dealing on 18 March 2020 following the deployment of a ‘material uncertainty clause’ by the Fund’s independent property valuer, CBRE. This meant the valuer was unable to provide an appropriate level of certainty regarding the valuation of the Fund’s assets in the market environment at the time. The decision to suspend dealing was aimed at preventing any unitholders being disadvantaged by those redeeming from or investing in the Fund at an uncertain price and was consistent with the approach taken across the investment industry.

Today, CBRE has confirmed that it has removed the material uncertainty clause from the assets held by the Fund. As a result the Threadneedle PAIF will reopen for dealing on 17 September 2020.

Gerry Frewin, Fund Manager for the Threadneedle PAIF, says: “We are delighted to re-open dealing in the Fund from 17 September. We appreciate that suspending dealings in the Fund may have caused some inconvenience for our clients, however the decision to suspend dealing meant that no unitholders would be disadvantaged and ensured the fair treatment of all investors at a time of exceptional market uncertainty.   

“While short-term property returns turned negative during the first half of 2020 due to Covid-19 and the resulting uncertainty in markets and economies, capital volatility has been easing, and the longer-term case for property remains compelling on an income and portfolio diversification basis.”

The Threadneedle PAIF and its feeder fund invest in physical UK commercial property such as warehouses, offices and retail around the UK. Columbia Threadneedle continues to believe real estate should form a part of a balanced portfolio for a long-term investor.