Columbia Threadneedle bags £138m Nuveen fund for TPUT

Columbia Threadneedle Real Estate has purchased the UK Property Fund (UKPF), established by Nuveen Real Estate in 1994.

The fund, which had a c £138 million NAV in 2024,  will provide the Threadneedle Property Unit Trust (TPUT) with a further 16 assets, a mix of primarily retail, office and industrial bringing its NAV to over £1 billion.

Columbia Threadneedle said the average asset size is consistent across both portfolios, averaging circa £8m. Genesis Business Park in Woking (pictured above), among the larger assets, has recently received planning consent for conversion to industrial and self-storage use.

“We have been exploring opportunities to add complementary assets and long-term investors to the Threadneedle Property Unity Trust and are delighted to confirm completion of this purchase,” James Coke, Columbia Threadneedle Investments’ executive director and fund manager, said. “The deal provides consistency and longevity for clients and adds complementary assets to our portfolio.”

The merger of clients and assets into TPUT is believed to be the first unlisted transaction successfully completed this cycle and follows similar consolidation in the listed marketplace.

Robin Hutchinson, Senior Director at Nuveen Real Estate, said: “Following careful consultation with our investor base, Nuveen ran a comprehensive due diligence process to source a manager which could take on the vehicle and offer our long-standing clients an enduring solution in a marketplace currently subject to consolidation. Columbia Threadneedle was duly selected by Nuveen based on fund size and portfolio composition.”