Aberdeen Asset Management's rush office sale trims £11 million off price

The rapid-fire auction of a £100 million office block put up for sale to fund a post-Brexit stampede from a £2.7 billion property fund has wiped £11 million off its value in a week, the Evening Standard understands.

Investors fearing slumping commercial property values in the wake of the historic EU vote prompted a rush of withdrawals from major funds, which were forced to freeze trading and sell off assets to fund withdrawals.

Aberdeen Asset Management put two buildings up for sale a week ago, with a £100 million price tag on 10 Hammersmith Grove, home to tenants including a subsidiary of 21st Century Fox.

Axa Investment Management was understood to be close to a swoop early last week before its board got cold feet, but the asset is now said to be under offer to property fund Brockton Capital for just £89 million.

One source said: “The speed of this deal is staggering. This is the biggest so far but it’s certain there will be more to come.”

Aberdeen, which declined to comment, lifted a suspension on withdrawals from the fund last Wednesday, although investors pulling out will have to accept a 17% price cut.