Aberdeen Standard Investments Ltd. is reviewing its investments in retail property amid investors withdrawing from its £1.2 billion property fund over concerns of declining valuations of such property in the market, The Times reported.
The Aberdeen UK Property fund has more than 40% of its assets in retail property, the newspaper noted. Aberdeen Standard said it is "closely" monitoring the situation.
Neil Slater, global head of real estate at the asset manager, is weighing a revamp of its real estate division, according to the Dec. 16 report. Slater said the company may further bolster its Asian business or its residential capabilities in the U.K., among other business areas, to ensure it is "well placed for the future." He is also keen on exploring the rise of e-commerce and flexible working.
Earlier in December, rival M&G Investments suspended dealing in the shares of its £2.54 billion M&G Property Portfolio, citing Brexit-related uncertainty and ongoing structural shifts in the U.K.'s retail sector. M&G's life and pensions division also suspended a £164 million property fund that is fully invested in the company's flagship U.K. property fund.