UK Property Funds Merge, Creating £4.7 Billion Fund Amid Consolidation

The UK's longest-standing property funds, Federated Hermes Property Unit Trust and Legal & General's Managed Property Fund, are merging to create a £4.7 billion ($6.4 billion) combined fund. The move is part of a sector-wide consolidation, driven by a wave of redemptions from defined benefit pension plans and a series of closures of property funds for retail investors. The merger will see a substantial portion of FHPUT unit holders' holdings transferred to the MPF or receive liquidity.