AREF Survey
The latest news from the Association of Real Estate Funds is not very promising. The data released on Wednesday, Feb. sixth shows that almost 1.7 billion pounds has been withdrawn from UK property funds. The last three months of 2007 has shown that investor confidence has not been good.
The investment sector has taken a hit after the commercial property boom is over. The sum of nine hundred thirty-nine million pounds has been removed from these in the former quarter. The crunch includes about sixty four funds with an approximate value of thirty-seven billion pounds.
In a response to the AREF survey and to prevent investors from pulling more funds, it will now be more difficult to exit a fund. They are trying to avoid a mass exodus from the funds and keep some liquidity. Some of the major authorised property unit trusts or APUTs are watching major retail investors.
Legal and General UK Property Trust and New Star Property Unit Trust are only a couple that have been targeted. Trying to protect both the funds and the investor is a complicated process. Finding a perfect balance may not be possible in today’s market. You will want to keep up with the current information.