Nuveen offloads open-ended UK property fund to Columbia Threadneedle

Nuveen Real Estate’s open-ended UK property fund, which currently holds 16 assets, has been acquired by the real estate arm of Columbia Threadneedle.

Columbia Threadneedle Real Estate said it has acquired the UK Property Fund (UKPF), which will be merged with its Threadneedle Property Unit Trust (TPUT), lifting TPUT’s net asset value (NAV) to over £1bn (€1.2bn). No additional financial details were disclosed.

UKPF was set up in 1994 to offer unit holders access to a diversified portfolio of UK commercial properties. The fund aims to outperform the median fund in the All Balanced Fund Index component of the MSCI/AREF UK Quarterly Property Fund Index.

According to the latest information from Nuveen, UKPF’s assets include retail and shopping centres, offices, as well as warehouse and industrial properties, with a net asset value of £137.9m.

The unlisted UKPF and TPUT funds allow institutional and professional investors to invest in a diversified portfolio of UK property.

James Coke, executive director and fund manager, UK real estate at Columbia Threadneedle Investments, said: “We have been exploring opportunities to add complementary assets and long-term investors to the Threadneedle Property Unit Trust and are delighted to confirm completion of this purchase.

“The deal provides consistency and longevity for clients and adds complementary assets to our portfolio, which will continue to be managed to deliver positive financial returns as well as seeking environmental and social outcomes.”

Robin Hutchinson, senior director at Nuveen Real Estate, said: “The UK Property Fund was launched in 1994 offering investors access to a diversified portfolio of UK commercial real estate. It has consistently delivered outperformance – 70bps of annualised outperformance versus its benchmark – since inception.

“Following careful consultation with our investor base, Nuveen ran a comprehensive due diligence process to source a manager which could take on the vehicle and offer our long-standing clients an enduring solution in a marketplace currently subject to consolidation. Columbia Threadneedle was duly selected by Nuveen based on fund size and portfolio composition.”

To read the latest IPE Real Assets magazine click here.