Investors trapped in the Janus Henderson UK Property Paif have been told they can expect their money back in less than two months after the fund group sold the £1bn fund at a premium.
The asset manager notified shareholders on 28 April it had begun winding up the open-ended property fund after securing an unnamed single buyer to take the fund’s direct property portfolio off its hands.
The value of the transaction was not disclosed but Janus Henderson said the sale price was higher than the most recent independent valuation used to price the funds.
“We believe this provides a good outcome for investors given the ongoing uncertainty faced by daily dealing property funds,” the fund group said in the update.
Proceeds to be returned to investors by mid-June
The sale is expected to complete some time in the week commencing 30 May. Janus Henderson said it would look to start returning cash to investors around 13 June, two weeks after the sale completes.
Janus Henderson revealed in early March it was “exploring various options” for the fund, ahead of incoming regulatory changes, which could see the long-term asset fund (LTAF), an open-ended fund with 90-180 day notice periods, foisted on the industry.
Days later it was forced to suspend the Janus Henderson UK Property Paif and feeder funds, as a wave of investors rushed for the exit.
See also: Uncertain future for UK property funds as LTAF rule change looms
Unclear just how generous sale price is
The fact it was able to fetch a higher price for its property portfolio is “surprising”, said Oli Creasey, property research analyst at Quilter Cheviot.
“We still don’t know the exact circumstances that led to the sale, but the fact that it is taking place above book value further reduces any concerns that this was some sort of distressed event,” said Creasey.
“What we don’t yet know is how far above book value the sale will take place at – clearly there is a difference between a 1% additional return vs 10% – and as the fund will bear the costs of the sale (lawyers, agents, etc) there is a risk that a small margin could still erode shareholder value,” he added.
“However, given the likelihood that Janus Henderson are not forced sellers, we think it is unlikely the fund would transact at a price that does not produce a positive net return for shareholders.”
