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Investors withdraw £1.7b from UK funds

(LONDON) Almost £1.7 billion (S$4.74 billion) was withdrawn from UK property funds in the last three months of 2007, data from the Association of Real Estate Funds (AREF) showed yesterday.

According to the survey of 64 funds with a combined value of £37 billion, the vast majority of investors continued to flee the sector after Britain’s extended commercial property boom hit the buffers in the summer and £939 million was withdrawn from the funds in the previous quarter.

More than £400 million was also raised by the funds in the fourth quarter.

Some of the respondents to the AREF survey have made it harder or more expensive for investors to exit their funds in recent months in order to shore up liquidity and avoid a firesale of property assets on the open market.

AREF members include authorised property unit trusts (known as APUTs) which are targeted at retail investors such as Legal & General UK Property Trust, M&G Property Portfolio, New Star Property Unit Trust, and the Norwich Property Trust.

 

Source: Reuters (Business Times 7 Feb 08)

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