Coronavirus: Dealing suspended in multi-billion Aberdeen Standard property funds

Aberdeen Standard Investments is the investment arm of Edinburgh financial giant Standard Life Aberdeen. Picture: Graham Flack

The £1.7 billion Standard Life Investments UK Real Estate Fund and the £1.1bn Aberdeen UK Property Fund, which are both listed on the London market, have been suspended.

A spokesperson for Aberdeen Standard Investments said: “Following the introduction of ‘material uncertainty’ clauses into valuations by UK property fund industry valuers, we have suspended dealing in our two open ended UK property funds and their feeder funds.

“Markets around the world have experienced huge disruption as Covid-19 spreads and trading in the UK property market is being severely impacted. As a result the funds’ independent valuers have informed us it is not currently possible to provide accurate and reliable valuations for certain assets.

“We will aim to lift the suspension as soon as confidence returns to the market and there is more certainty regarding asset valuations, taking into account the best interests of customers and investors.”

Paul Richards, managing director of the Association of Real Estate Funds (AREF), said: “Investing in UK property is an investment in hotels, offices, shops, warehouses, and restaurants up and down the country. Covid-19 is causing great economic uncertainty, hitting all of these businesses, and also reducing the number of investment transactions which provide evidence for property valuations.

“This means that valuers can no longer assess the value of properties with a high degree of certainty. Under these conditions property funds need to suspend while this extraordinary situation lasts, in order to ensure that investors, mostly long-term pension savers, are protected. Strict FCA regulations apply, in order to ensure that all investors are treated fairly.”