L&G and Federated Hermes Combine £6.37 Billion UK Real Estate Funds

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Aug 18 2025

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Source: Reuters

Merger Announcement: Legal & General (L&G) and Federated Hermes Property Unit Trust (FHPUT) have merged their UK property funds, creating a combined portfolio valued at £4.7 billion ($6.37 billion).
Impact of the Pandemic: The commercial property sector has faced challenges due to higher borrowing costs and shifts in working patterns since the pandemic, leading to closures and mergers among other UK property funds.
Ownership Transfer: A significant portion of FHPUT's unitholders' investments will be transferred to L&G's Managed Property Fund (MPF), which will take over FHPUT's real estate assets.
Growth Strategy: Rob Codling from L&G highlighted that the MPF has been actively acquiring properties over the past 18 months, and this merger aims to further enhance their property portfolio.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.