Property Funds On Freezing Frenzy Due To Brexit Panic
Investors are panicking—trying to dump real estate holdings in Brexit’s aftermath, forcing UK property funds to freeze withdrawals on funds totaling more than $19.4B in assets.
With analysts warning that London office values could plummet as much as 20% within three years of the UK leaving the EU, it’s not hard to understand the panic. One property fund managed by Aberdeen Fund Managers has already seen its value slashed by 17%, and the firm even suspended redemptions so investors who asked for their money back can reconsider, Bloomberg reports.
As of yesterday seven UK firms are curbing redemptions, and there’s a growing fear that failure to control investor panic following the Brexit vote could throw the UK into a recession. [Bloomberg]