Property News · September 24, 2016

Property funds back in business after Brexit vote closures


The discounting and ‘value adjustments’ in the wake of the EU referendum are at last over. But at what cost?The doors are reopening on the £35bn of investors’ money locked in commercial property funds, after they were suspended in the wake of the Brexit vote when panicking investors feared a collapse in values.Shortly after the EU referendum result, Standard Life halted trading in its £2.9bn fund, with Aviva, M&G, Henderson and Columbia Threadneedle soon following suit. It meant investors could no longer access their cash held in the funds. What’s more, most of the funds added a “fair value adjustment”, in effect marking down the value of the properties they owned and therefore shrinking investors’ holdings. Legal & General slapped a 15% discount on its fund, and Kames 10%, while others slashed theirs by around 5%. Continue reading…

Source : theguardian.com
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