Aberdeen Standard Investments reviews retail assets
Ballooning assets: ASI will review its exposure (pic: Terry Murden)
Aberdeen Standard Investments, Britain’s biggest real estate landlord, is reviewing its exposure to the retail sector amid investor jitters over property funds.
The Edinburgh-based asset manager’s commercial property division has £43 billion of assets under management, of which two-thirds are in the UK.
Neil Slater, who took over as global head of real estate six weeks ago, is now instigating a shake-up of its strategy, according to The Sunday Times.
ASI’s £1.3 billion property fund has been hit by redemptions at a time of higher withdrawals across the sector, notably at M&G, which opted to suspend its £2.5bn fund.
ASI last week announced it had offloaded has sold The Moor shopping centre in Sheffield – the biggest asset in its UK property fund – to New River real estate investment trust, after putting it on the market with an £89.4m price tag.
The shopping centre accounts for 7% of the fund, reportedly generating about £7m a year in rent.
M&G said its property portfolio had seen a surge in outflows and blamed political uncertainty for making it difficult to sell commercial property.
Funds that invest in illiquid assets but can be traded on a daily basis have come under pressure in recent months.