Aberdeen Asset Management has put up for sale the largest asset in its £3.2bn UK Property Fund.
The fund manager has appointed CBRE to sell 355 Oxford Street, W1, for £145m – a 3% yield.
Boots is the 54,734 block’s main retail tenant, which occupies 5,903 sq ft. Aberdeen bought the asset for £76m from a group of private Irish investors – a 4.27% yield, in 2011.
Aberdeen is looking to sell assets in order to repay redemptions prompted by the result of the EU referendum.
Aberdeen is one of seven funds to have suspended trading last week following concerns that the vote to leave the EU could cause property prices to crash.
On 6 July, Aberdeen cut the price of its fund by 17% and temporarily froze withdrawals. The fund currently remains closed for withdrawals but is due to reopen at noon on 13 July.
Earlier today: Aberdeen extends suspension of property funds
Explainer: What’s going wrong with open-ended retail funds?
Aberdeen is also selling its second largest asset, office block 10 Hammersmith Grove, W6, through Strutt & Parker for £105m.
Gerry Ferguson, head of 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.”
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