Columbia Threadneedle acquires property fund from Nuveen
Columbia Threadneedle has acquired a 16-strong property fund from Nuveen.
The group’s real estate arm has acquired Nuveen’s UK Property Fund (UKPF), which will be combined with its Threadneedle Property Unit Trust (TPUT).
Columbia Threadneedle said the acquisition creates a combined portfolio with a net asset value of over £1bn.
UKPF’s assets include retail properties and shopping centres, warehouse and industrial properties, and offices. The fund has a net asset value of £137.9m.
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.”
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.”