Dealing information
Federated Hermes Property Unit Trust
Buying of Units
Units may be purchased at Offer price on twelve Subscription dates annually. These are normally 26 January, 26 February, 26 March, 26 April, 26 May, 25 June, 26 July, 26 August, 30 September, 26 October, 26 November and 26 December or the next following business day. The minimum investment is £1 million, a smaller minimum investment may be accepted at the Trust Manager discretion.
The Offer price is calculated as the Fair Value of a unit plus the estimated acquisition costs of property including stamp duty. The Fair Value of a unit is based on an independent valuation of the properties owned by the Trust, adjusted for any circumstances the Trust Manager deems to be material.
Normally all applications will be accepted and allotted in full; however, the Trust Manager reserves the right to refuse applications or to scale them down. The Form of Application for units incorporates an indemnity and is accompanied by a form of authority addressed to the HMRC authorising them to advise the Trust Manager in the event of the Unit Holder ceasing to be an Exempt Fund.
These provisions are designed to protect the tax position of the Trust and enable immediate steps to be taken to secure disposal of the holding of a Unit Holder who no longer has exempt fund status.
Disposal of Units by Transfer
The Trust Manager operates a unit matching service and may be able to help facilitate early encashment for Unit Holders wishing to dispose of their units.
A Unit Holder may, subject to the requirements of the Trust Deed, transfer some or all of his units to another Exempt Fund, at a price agreed between them. Transfers between exempt funds will take effect on the register at the next Subscription date (see ‘Buying of Units’), following receipt by the Trust of the completed transfer.
Disposal of Units by Redemption
Unit Holders wishing to redeem their units must notify the Trust Manager in writing, to take effect at the following Notice Date, being 26 March, 25 June, 30 September and 26 December. The Trust Manager will notify those Unit Holders within six weeks of the Notice Date whether their redemption has been accepted, in certain circumstances the Trust Manager may defer the redemption of some or all of the units for up to nine months; however, in normal circumstances the redemption proceeds will be paid to Unit Holders on the next following Notice Date, i.e., for a redemption notice received on 25 June redemption proceeds will normally be paid out on the 30 September, at BID prices as at that date.
The Bid price is calculated as the Fair Value of a unit less the estimated selling costs of property. The Fair Value of a unit is based on an independent valuation of the Trust’s assets, adjusted for any circumstances the Trust Manager deems to be material. The costs associated with selling property will usually range from 1% to 2%.
Prevention of Money Laundering
The Trust Manager has the right to request such information as is considered necessary to verify the identity of an initial applicant. In the event of delay or failure to produce such information the Trust Manager may not accept the application.
Title to Units
Title to Units shall be evidenced by an entry in the Register. The Trust Manager shall not issue certificates to Unit Holders. A statement shall be sent to each Unit Holder at least once a year.
Source: Federated Hermes
Past performance is not a reliable indicator of future results and targets are not guaranteed.
*Knight Frank LLP, as valuers of the Investment Property held by Federated Hermes Property Unit Trust have issued the property valuation with the following statement to highlight market uncertainty:
Material valuation uncertainty due to Novel Coronavirus (COVID – 19)
The outbreak of the Novel Coronavirus (COVID-19), declared by the World Health Organisation as a ‘Global Pandemic’ on the 11th March 2020, has impacted many aspects of daily life and the global economy – with some real estate markets experiencing significantly lower levels of transactional activity and liquidity. As at the valuation date, in the case of those properties expressly highlighted1, there is a shortage of market evidence for comparison purposes, to inform opinions of value. Our valuation of these properties1 is therefore reported as being subject to ‘material valuation uncertainty’ as set out in VPS 3 and VPGA 10 of the RICS Valuation – Global Standards. Consequently, less certainty – and a higher degree of caution – should be attached to our valuation than would normally be the case.
For the avoidance of doubt, the inclusion of the ‘material valuation uncertainty’ declaration above does not mean that the valuation cannot be relied upon. Rather, the declaration has been included to ensure transparency of the fact that – in the current extraordinary circumstances – less certainty can be attached to the valuation than would otherwise be the case. The material valuation uncertainty clause is to serve as a precaution and does not invalidate the valuation. Given the unknown future impact that COVID-19 might have on the real estate market and the difficulty in differentiating between short term impacts and long-term structural changes, we recommend that you keep the valuations1 contained within this report under frequent review.
1From 25 July 2020, the Material Valuation Uncertainty clause only applies to all Retail (excluding standalone Food Stores), Leisure and Regional Office properties.
