The proposal follows a review of Aberdeen’s real estate fund range and is designed to modernise and simplify the fund offering while bringing together assets into a larger, more diversified vehicle. The transaction is expected to complete in November 2026, subject to investor approval. Shareholders will have until October 30, 2026 to vote on the proposed merger.

The firm states that upon completion, investors would gain access to a high-conviction, research-led global real estate portfolio, combining direct property investments in the UK and international markets with a diversified allocation to global listed real estate securities, including REITs and listed property companies.

The merger comes after an FCA consultation in 2020, which proposed notice periods (either 90 or 180 days) on open-ended, daily traded funds that invest more than 50% of their assets in direct real estate.

The FCA has stated that it will consult on a framework for notice periods and other liquidity restrictions for funds with substantial direct real estate exposure. The Global Real Estate Fund’s ongoing transition to a 45% direct, 45% indirect and 10% cash portfolio composition appears consistent with the FCA’s direction of travel, the firm said.

Anne Breen, global head of real estate at Aberdeen Investments, said: “A larger, more diversified strategy would provide investors with access to a broader opportunity set across global property markets, while creating a more streamlined and scalable platform from which to target long-term growth and income.”