British wealth manager St James's Place PLC (LSE:STJ) is shuttering all three of its property funds in response to a tepid post-Covid recovery in the UK property market.
SJP’s Property Unit Trust, Pension and Life funds, which currently hold around £1.8 billion worth of assets, will be wound down over the next couple of years, the FTSE 100 group said in a statement.
SJP launched its property funds in 2004.
Tom Beal, group investment director at St. James’s Place, said: “Since we launched our property funds in 2004, the marketplace and our investment processes have evolved substantially, with the pandemic significantly impacting the wider property market.
“Following the suspension of the fund in October 2023, we have reviewed all options available to us and concluded that the best course of action is to wind down the funds. Doing so over a period of time will allow us to maximise value for our clients.”
Clients in the Unit Trust are expected to receive the first payment by the end of the year, which will be approximately a quarter of the value of their investment in the fund.
Clients with income units are expected to continue to receive quarterly or monthly income distributions while the funds are wound down.
SJP shares added 1.5% on Wednesday afternoon.