Aberdeen Investments is seeking investor approval to combine the abrdn Real Estate Fund (aREF) and the abrdn Real Estate Feeder Fund with the abrdn Global Real Estate Fund (GREF) to create a global hybrid real estate fund with assets of more than £700m.
The proposal follows a review of Aberdeen’s real estate fund range and is designed to simplify the fund offering while bringing together assets into a larger, more diversified vehicle.
Aberdeen believes a larger combined fund would offer investors the benefits of greater diversification, increased scale and enhanced flexibility in managing liquidity, while maintaining exposure to the long-term opportunities available across global real estate markets. The transaction is expected to complete in November 2026, subject to investor approval.
Anne Breen, global head of real estate at Aberdeen Investments, said: “Real estate remains an important part of investors’ portfolios, but the way investors want to access the asset class continues to evolve. Over recent years we have taken significant steps to modernise our range, combining the long-term benefits of direct property ownership with the flexibility offered by more liquid real estate investments.
“We believe bringing these funds together is the natural next step in that evolution. A larger, more diversified strategy would provide investors with access to a broader opportunity set across global property markets, while creating a more streamlined and scalable platform from which to target long-term growth and income.”
Euan Anderson, investment director, real estate at Aberdeen Investments, added: “We welcome the FCA’s focus on ensuring that fund liquidity arrangements remain aligned with the underlying assets held on behalf of investors. The industry has evolved significantly in recent years, and Aberdeen has been taking proactive steps to adapt, including transitioning our real estate funds towards hybrid structures that combine direct real estate with more liquid investments.
“We believe that greater scale, diversification and liquidity management flexibility will be increasingly important going forward, which is reflected in our proposal to combine the abrdn Real Estate Fund and abrdn Global Real Estate Fund into a single flagship solution. Bringing these strategies together would create a broader global property portfolio and allow us to focus our resources on delivering the best possible outcomes for investors. We look forward to engaging constructively with the FCA during any future consultation.”
