Investors are on the hunt for cheap property in the UK, hoping real estate values have weakened following the Brexit vote.
UK real estate took a huge hit last month following the referendum vote, and even asset managers have been forced to freeze trading on property funds due to an unprecedented amount of investors scrambling to withdraw funds.
Real estate funds have been on a selling spree as a result, trying to raise enough capital to pay out to investors dumping real estate holdings, the Wall Street Journal reports. An asset manager that temporarily stopped trading on its fund sold a building in central London last week for 20% less than it was valued, and Norway’s sovereign wealth fund acquired a retail and office property for $164.3M from Aberdeen Asset Management.
“The bottom feeders are out,” Colliers International European head of cross-border capital Richard Divall says. [WSJ]
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