Investors in the now-terminated Aegon Property Income fund and its feeder will receive a further £6m, representing 2.83% of the value of the funds at 11 November, which should arrive in their bank accounts “on or around” 19 November.
Costs to Aegon Property Income investors rose 56% despite management fee discount
The payout is significantly smaller than its initial £168m distribution, however the managers noted that “market activity is slower in the summer months” and the fund is returning cash to investors as a result of the one completed sale it has made since its first capital return.
A further five assets are currently under offer for sale with another six in the market for sale, the total value of which, including the completed sale, is about £75m.
According to the most recent factsheet (31 October 2021), 91.6% of the fund is invested in property, with net current assets of 8.4%, which includes cash and short-term assets and liabilities. The fund currently holds £212m in assets.
The managers also clarified they were undertaking “capital expenditure on several properties to enable us to optimize sale values” and have retained “sufficient funds” to finance this.
Aviva Investors to issue second property payment on 18 Oct
As per the initial announcement, investors should expect liquidation of the fund to take 12 to 24 months from its closure on 9 August 2021.
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