Aberdeen has proposed a merger of its abrdn Real Estate fund (and its feeder fund) into the abrdn Global Real Estate fund to create a new flagship real estate strategy, with more than £700m in assets under management.
The proposal follows a review of the abrdn real estate range and attempts to simplify the fund into a larger, more diversified vehicle. Depending on investor approval, the merger is expected to complete in November 2026, with a voting deadline of 30 October 2026
The enlarged Global Real Estate fund will combine direct property investments in the UK and international markets with allocations to global listed real estate securities, such as REITS, to broaden investors’ opportunity sets.
Anne Breen, global head of real estate at Aberdeen Investments, said that how investors gain exposure to the asset class has evolved, and the team have attempted to move their portfolios to reflect that.
“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.”
According to data from FE fundinfo, the abrdn Global Real Estate fund is up 27% over the past decade, versus an IA Direct and Hybrid Property sector average of 21.2%. Meanwhile, the abrdn Real Estate Fund has underperformed over this period, rising just 10.3% over the same period.
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