LONDON Fund manager Columbia Threadneedle said on Monday it plans to lift the suspension in trading of its UK retail property fund as investor sentiment in the sector had steadied in the weeks following Britain's vote to leave the European Union.
The Threadneedle UK Property Authorised Investment Fund, which includes the Threadneedle UK Property Authorised Trust, was one of several UK funds to be suspended after the June 23 vote amid concerns that prices for commercial property would fall.
Since the July 6 suspension, however, the market had settled, said Don Jordison, Managing Director of Property, Columbia Threadneedle Investments, and the suspension would be lifted on Sept. 26.
"Much of the earlier commentary now appears slightly irrational and more informed reflection has settled the market," he said.
"Any effects of the Brexit vote on the overall UK economy --negative or otherwise -- would take many months, if not years to transpire and some time after that for the property market," he added.
Since July, Threadneedle had sold 25 properties for a combined value of 167 million pounds, it said, and had achieved prices that were, in aggregate, less than 1 percent below the last independent valuation prior to the referendum, it said.
Threadneedle said the fund would open without any redemption penalties and would return to a standard monthly valuation of the fund's assets, after moving to weekly pricing during the suspension period.
The fund invests in warehouses, shopping centres and offices around the UK and has little exposure to large buildings in central London, including offices, where much international demand is focused, it said.
(Reporting by Simon Jessop, editing by Louise Heavens)