Columbia Threadneedle Real Estate has purchased Nuveen Real Estate’s UK Property Fund (UKPF) for an undisclosed price.
The acquisition of the assets takes Threadneedle Property Unity Trust’s (TPUT) net asset value to more than £1bn. The majority of the 16 assets acquired are industrial or retail properties and the average asset size is circa £18m.
Among the larger assets being integrated into TPUT is Genesis Business Park in Woking (pictured), which recently secured planning consent for conversion to industrial and self-storage uses.
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. We continue to focus on maximising portfolio value through active management to deliver positive outcomes for clients, taking advantage of momentum in the market.”
Robin Hutchinson, senior director at Nuveen Real Estate, added: “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.”
Hogan Lovells acted for Columbia Threadneedle Investments and Osborne Clarke represented Nuveen Real Estate.
