Columbia Threadneedle Real Estate has completed the merger of PATRIZIA Hanover Property Unit Trust (PATH) into the Threadneedle Property Unit Trust (TPUT), following approval from PATH shareholders.
The merger creates an enlarged, diversified UK real estate strategy with assets of approximately £1.5bn.
Columbia Threadneedle was selected as the preferred long-term partner following a comprehensive review by PATRIZIA, which assessed investor priorities, fund characteristics, portfolio fit and operational capabilities.
The merged portfolio provides opportunities to enhance the value of the underlying properties through active asset management, particularly at the two largest assets in Aylesbury and Wetherby.
James Coke, executive director and fund manager, UK real estate at Columbia Threadneedle, said: “This transaction reflects our disciplined approach to managing TPUT, which is fast developing a reputation for dynamism alongside its traditional focus on strong client outcomes. The PATH portfolio is highly complementary and strengthens TPUT’s diversification and long-term positioning for existing and incoming investors. The team has delivered an innovative transaction solution for clients and we are delighted to provide a long-term home for real estate capital in a rapidly evolving market.”
Ker Gilchrist, head of investment management UK at PATRIZIA, added: “PATH has been a long-established UK real estate fund with a proven track record of sustained outperformance against its benchmark, and we are exceptionally proud that PATH has consistently ranked at or among the top-performing funds in its peer group. The strategic review was undertaken to ensure that the fund continued to meet the evolving needs of its investors over the long term. We selected Columbia Threadneedle as the preferred long-term partner based on the strength of its platform, the scale and composition of TPUT, and its experience in managing and integrating UK real estate portfolios.”
Joseph Vullo, head of real estate, Europe at Columbia Threadneedle Investments, said: “Having now successfully completed two major fund consolidation transactions, we believe Columbia Threadneedle is increasingly recognised as a partner that can help clients navigate a changing real estate market. This transaction strengthens our platform and supports our ambition to grow across Europe, offering clients solutions across the risk-return spectrum, from core income strategies through to value-add opportunities.”
