Aberdeen cuts price discount on suspended property fund

Chief executive Martin Gilbert said the move comes after some “calm and order” was being restored in the market and Aberdeen is now revising its outlook for UK property prices and has cut the price adjustment on the UK Property fund and its feeder fund to -5 per cent, from -7 per cent.

Aberdeen saw £1.5 billion of net outflows from its property strategies in the three months to the end of June, which includes a small portion of post-Brexit outflows. Trading on the funds was suspended as a result of the EU vote.

In a statement announcing the latest price redution, Aberdeen explained: “This reflects our revised assessment of the impact of the vote to leave the EU on property values in the fund. This revision takes into account the latest emerging evidence from independent valuers, evidence of transactions in the market and other relevant inputs.”

Mr Gilbert added: “The impact of the vote to leave the EU is being felt most in the central London office market, which the portfolio has little exposure to, whereas the retail and logistics markets are holding up relatively well along with longer-leased properties and those less dependent upon future rental growth.

“The quality of our holdings has allowed us to re-assess the fair value adjustment we are applying in the light of further emerging evidence. Of course the situation remains very fragile so we will remain watchful and act accordingly in the interests of all our underlying investors.”