Finance
L&G and Federated Hermes merge $6.37 billion UK property funds
Published by Global Banking and Finance Review
Posted on August 18, 2025
1 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 18, 2025
1 min readLast updated: January 22, 2026
L&G and Federated Hermes have merged UK property funds worth $6.37 billion to strengthen their portfolio amid market challenges.
(Reuters) -Legal & General (L&G) and Federated Hermes Property Unit Trust (FHPUT) have merged their UK property funds to create a combined portfolio valued at 4.7 billion pounds ($6.37 billion), L&G said on Monday.
Commercial property investments have been hammered since the pandemic by higher borrowing costs and changing working patterns. The deal comes as tough trading has seen other UK property funds close or merge since COVID-19.
A significant share of Federated Hermes' unitholders' investments will be transferred to L&G's Managed Property Fund (MPF), which will assume ownership of FHPUT's real estate portfolio, the statement said.
"The MPF has been very acquisitive over the last 18 months, and this merger will continue to expand and strengthen our property portfolio," said Rob Codling, head of commercial funds, Real Estate Equity at L&G.
FHPUT was launched in 1967, while L&G's Managed Property Fund has been active since 1971.
($1 = 0.7381 pounds)
(Reporting by DhanushVignesh Babu in Bengaluru and Iain Withers in London; Editing by Rashmi Aich)
The combined portfolio created by the merger is valued at 4.7 billion pounds, which is approximately $6.37 billion.
Commercial property investments have faced challenges due to higher borrowing costs and changing working patterns since the pandemic.
L&G's Managed Property Fund (MPF) will take ownership of Federated Hermes Property Unit Trust's real estate portfolio.
Federated Hermes Property Unit Trust was launched in 1967.
The MPF has been very acquisitive over the last 18 months, indicating a strategy to expand and strengthen its property portfolio.
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