Property fund looks to sell Leicester BT building after Brexit

A commercial property fund is set to sell off a BT building in Leicester as a result of the vote to leave the EU.

According to reports, Aberdeen Asset Management is one of seven UK commercial property funds who have taken steps to either suspend dealing or cut valuations in response to the 23 June referendum, which has sparked fears that commercial property will be a less attractive investment.

Aberdeen Asset Management, which aims to resume dealings in its property fund on Wednesday after cutting its value by 17%, said it was looking at the sale of a number of properties.

It is thought that New Albion House at Charnwood Place in Leicester city centre could be put up for sale by the firm.

Gerry Ferguson, head of Aberdeen’s UK property pooled funds, said: “Following a period of higher than normal redemptions from the fund after the EU referendum result and the suspension of other funds’ trading, the fund is now seeking to rebuild its liquidity position. A limited number of properties are being marketed and we will
seek the highest prices achievable for our investors as is our normal practice.”

Aberdeen Asset Management has suffered of late. The Scottish firm saw underlying profits for the six months ending March fall by 40% to £163m and turnover drop by 20% to £484m.

Ironically, when the results were announced, boss Martin Gilbert said: “Hopefully, we’ll do a Leicester City and come straight back.”