L&G latest to eye property fund reopening

L&G expects its UK property fund to be open for trading again next month. The investment house was one of several to close property funds to redemptions during the market volatility of the Covid-19 pandemic. L&G brought down the shutters on its near-£2.9bn Legal & General UK Property Fund and the Legal & General UK Property Feeder Fund in mid-March. The company plans to reopen the funds on 13 October, noting that material uncertainty clauses are now in place on less than 20% of the portfolio, and that the risk of passing that 20% threshold is “limited”. When the funds were frozen, L&G told investors that the introduction of material uncertainty clauses by valuer Knight Frank meant it “cannot be confident about the valuation of properties” during “the unprecedented set of circumstance caused by the Covid-19 virus impacting market activity across all sectors”. Now, with RICS recommending the lifting of material uncertainty clauses, managers are moving to reopen funds. To send feedback, e-mail tim.burke@egi.co.uk or tweet @_tim_burke or @estatesgazette Photo: Simon Belcher/imageBROKER/Shutterstock