Brexit-Hit Aberdeen Fund Said to Find Buyer for Office Block

U.K. Property Funds Frozen to Halt Withdrawals

Brockton Capital LLP is the lead bidder to buy a London office building that Aberdeen Asset Management Plc’s U.K. Property Fund is selling after redemption requests soared, according to a person familiar with the discussions.

The London based private-equity firm, which raised about 800 million pounds ($1.1 billion) for its latest real estate fund earlier this year, is on course to buy 10 Hammersmith Grove, the person said, asking not to be identified because the talks are private.

Spokesmen for Brockton and Aberdeen declined to comment.

The managers of seven funds with about 18 billion pounds of assets, including Aberdeen, halted trading last week to preserve cash levels after the U.K.’s vote to leave the European Union sparked an increase in redemptions. Aberdeen resumed trading in the fund Wednesday after a one-week suspension and is among funds offering buildings for sale.

The office block, in the Hammersmith district in west London, was completed in 2014 and is leased to tenants including media group Fox International Channels (U.K.) Ltd., and tobacco company Philip Morris Ltd.

Jason Blank, who previously worked at Merrill Lynch & Co., and David Marks, an ex-Blackstone Group LP employee, co-founded Brockton in 2005. The company has invested in London offices, data centers and shopping malls.

Bets on a decline in property-company shares have jumped 28 percent since the referendum, according to a report published on Tuesday by Markit. Mall owner Intu Properties Plc has short interest at 10.3 percent of shares outstanding, the most since 2009 and the highest in the industry, the report said. A spokesman for Intu declined to comment.

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