Aberdeen Investments plans to combine two of its real estate funds to create a flagship global real estate strategy with more than £700m under management.
The proposed merger would bring together the Abrdn Real Estate Fund and the Abrdn Real Estate Feeder Fund with the Abrdn Global Real Estate Fund.
The transaction is expected to complete in November 2026, subject to investor approval.
The firm said the plan follows a review of its real estate fund range and is designed to simplify the fund offering while bringing together assets into a larger, more diversified vehicle.
It said it believes a larger combined fund would offer investors greater diversification, increased scale and enhanced flexibility in managing liquidity, while maintaining exposure to the long-term opportunities available across global real estate markets.
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.”
The move comes as the FCA has stated that it will consult on a framework for notice periods and other liquidity restrictions for funds with substantial direct real estate exposure. The current transition underway across the Global Real Estate Fund targeting a 45% direct / 45% indirect / 10% cash portfolio composition appears consistent with the FCA’s direction of travel, Aberdeen said.
The firm added: “While it is for the FCA to determine the final framework following consultation, we believe measures that seek to align fund liquidity more closely with the characteristics of the underlying assets can benefit investors meanwhile.”
Investors will be asked to vote on the firm’s proposal, with completion currently expected in November 2026, subject to the necessary approvals.
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