Columbia Threadneedle and Patrizia merge UK property funds

LONDON, July 2 (Reuters) - U.S.-based investment manager Columbia Threadneedle and Germany's Patrizia have agreed to merge their British property trusts, the companies said on Thursday, in line with a trend for real estate investors to seek increased scale to weather high borrowing costs.

• The deal will create a combined fund with around £1.5 billion ($2 billion) of assets spanning warehouses, offices, retail and residential.

• Shareholders in Patrizia Hanover Property Unit Trust, or PATH, have voted in favour of merging with Threadneedle Property Unit Trust, a statement said.

• It said PATH chose the option after a strategic review.

• In other deals in the sector, Blackstone took over Warehouse REIT last year, while Primary Health Properties merged with Assura.

• Last week, U.S. logistics firm Prologis made public a £12.6 billion takeover proposal for Britain's Segro, which had been rejected.

• “Having now successfully completed two major fund consolidation transactions, we believe Columbia Threadneedle is increasingly recognised as a partner that can help clients navigate a changing real estate market," said Joseph Vullo, Head of Real Estate, Europe at Columbia Threadneedle Investments.

($1 = 0.7517 pounds)

(Reporting by Iain Withers; editing by Barbara Lewis)