The withdrawal requests from some UK property fund investors are being delayed due to ‘market conditions’. Now, it has been understood that the total price of facing curbs is a whopping £15 billion. Open-ended real estate funds in Britain have been battling to meet a surge in demand for redemptions against a backdrop of high inflation and economic uncertainty, as valuations come under pressure from rising interest rates. Investors who put in requests to withdraw money from the 1.7 billion pound CBRE Property Authorised Investment Fund in the third quarter will receive “around half” of their redemption payments in January, with the remainder to follow “as soon as practically possible”, the spokesperson said by email.
Why are property investors now withdrawing from the investment fund?