Legal & General (L&G) has cut the fair value adjustment on withdrawals from its UK Property Fund (PAIF) and the UK Property Feeder Fund, citing more stable market conditions.

the brexit levy on cash withdrawals is being cut

The Brexit Levy on Cash Withdrawals is Being Cut

In the wake of the Brexit vote, L&G had imposed a 15% discount on valuations made immediately prior to the referendum for anyone withdrawing cash. The company said the decision ‘was taken in the interests of treating customers fairly, to reflect the uncertainty around commercial property values following the vote’.

L&G has now reduced the discount to 10%, applied from the valuation point on 15 July. L&G recently moved to more frequent, weekly valuations and said it intended to ‘unwind fair value pricing as soon as markets normalise further’.

Earlier this week, Aberdeen Asset Management – one of seven property funds which suspended redemptions after the UK referendum – said it was lifting a two-week trading suspension on its £3.2nbn (€3.7bn) UK Property fund.

Aberdeen recently confirmed that it was putting a number of properties on the market to boost its liquidity position, and announced the sale of a property on Oxford Street for £125 mln (€148 mln) to Norges Bank Real Estate Management in an all-equity deal.