Columbia Threadneedle Real Estate finalises second UK property fund merger

Columbia Threadneedle Real Estate, the specialised real estate arm of Columbia Threadneedle Investments, has completed the merger of the Patrizia Hanover Property Unit Trust (PATH) into the Threadneedle Property Unit Trust (TPUT).

James Coke 

Approved by PATH shareholders, the transaction consolidates the two long-standing vehicles into an expanded, diversified UK real estate strategy commanding approximately £1.5 bn (€1.8 bn) in assets.

The deal highlights a continuing wave of consolidation within the UK property funds sector.

Both funds share a highly compatible focus on proactive asset management and sustainability. The integration is set to provide investors with enhanced liquidity, greater tenant and asset diversification, and stronger long-term resilience. Moving forward, active asset management will be utilised to drive value across the unified portfolio, with a particular focus on its two largest holdings in Aylesbury and Wetherby.

This marks Columbia Threadneedle’s second major fund consolidation in recent history, following its integration of the UK Property Fund into TPUT last year.

James Coke, executive director and fund manager, UK Real Estate at Columbia Threadneedle, said: “This transaction reflects our disciplined approach to managing TPUT, which is fast developing a reputation for dynamism alongside its traditional focus on strong client outcomes. The PATH portfolio is highly complementary and strengthens TPUT’s diversification and long-term positioning for existing and incoming investors.”

Ker Gilchrist, head of Investment Management UK at Patrizia, commented: “We selected Columbia Threadneedle as the preferred long-term partner based on the strength of its platform, the scale and composition of TPUT, and its experience in managing and integrating UK real estate portfolios.” 

Joseph Vullo, head of Real Estate, Europe at Columbia Threadneedle Investments, added: “This transaction strengthens our platform and supports our ambition to grow across Europe, offering clients solutions across the risk-return spectrum, from core income strategies through to value-add opportunities."