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    UK: More property funds suspend redemptions Ivan Delgado

    The immediate consequences of the Brexit outcome are most palpable in UK's property funds, with a clear pattern of mistrust towards the country's property prices outlook, which has led players invested in UK's property funds to rush to the exits and sell their assets.As recently reported by the FT, "rapid cash outflows have been triggered by fears over falling real estate values in the wake of the Brexit vote". One of the most dramatic cases has been Standard Life's £2.9bn commercial property fund, which will now need to sell real estate to raise cash before more money can be redeemed by investors. Following Standard Life's decision to suspend redemptions, Aviva Investors and M&G Investments also suspended cash withdrawals due to lack of liquidity.If the above mentioned cases were not enough, market sources are now reporting similar situation on Columbia Threadneedle, Canada Life and Henderson. As the Finacial Times explains, in an article published earlier this week, "the moves sparked concern that the forced selling of buildings by investment funds could act as the catalyst for a steep drop in commercial property prices, as happened during the 2008 financial crisis." 


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