L&G and Federated Hermes merge major property funds

L&G and Federated Hermes have announced that the Federated Hermes Property Unit Trust (FHPUT) has merged into the L&G Managed Property Fund (MPF).

A substantial portion of FHPUT unitholders’ holdings will be transferred to the MPF, which will take ownership of FHPUTs real estate portfolio. All FHPUT unitholders will either have their holdings transferred or receive liquidity, in accordance with the structure of the transaction.

Following the completion of the merger, the enlarged MPF is valued at £4.7bn, the companies said in a statement. The aim is that the single larger fund will allow L&G to deliver greater scale and liquidity, while maintaining long-term performance for all investors.

Michael Barrie, head of real estate, UK & Europe at L&G, said: “Bringing together two of the UK’s most established property funds is a significant step in our strategy to strengthen our market position. It reinforces the collaborative approach that underpins L&G’s private market platform growth, our credibility as a partner of choice for consolidation opportunities and our abilities to execute innovative solutions."