Ainslie McLennan, Co-Manager of the Janus Henderson UK Property PAIF, explains how the investment team are proactively managing the property portfolio despite the fund being suspended for dealing.

    Key takeaways

  • As a result of COVID-19 the independent valuer to the Janus Henderson UK Property PAIF, CBRE, applied a material market uncertainty clause to the fund valuation on 17 March 2020 and, in line with new rules from the Financial Conduct Authority, the decision was taken to temporarily suspend dealing in the fund and its associated feeder fund to protect the interests of all investors.
  • Tenant strength remains a focus for the fund. With the pressure on many businesses to shut during the time of the COVID-19 lockdown it is worth noting that around 25% of the fund’s income is from food stores, the logistics industry, businesses deemed as essential services, and the government.
  • The investment team have been working closely with tenants, offering all the opportunity to pay rent monthly, rather than quarterly, to help their cash flow. Vacant space and potential use of car parks in shut assets have been offered to the NHS and the government for use where appropriate.
  • Communicating with tenants has also allowed for in-depth conversations on how the investment team can work with occupiers on sustainability matters and energy efficiencies, and potentially taking longer leases as a trade-off for any rental breaks.