In a stark flashback to the catalytic event that ultimately brought down Bear Stearns in 2008, and subsequently unleashed the greatest financial crisis in history, earlier this week it was reported that Standard Life, has been forced to stop retail investors selling out of one of the UK’s largest property funds for at least 28 days after rapid cash outflows were sparked by fears over falling real estate values.
As of Thursday, seven UK property funds have now frozen assets and suspended redemptions, which has so far seen over half of the GBP25billion in UK property sector suspend trading including such names as M&G Investments, Standard Life, Aviva, Henderson, Canada Life and Threadneedle.
UK’s asset management giant Aberdeen has not only halted redemption requests, but triggered a 17% cut to its asset values for anyone who wants to withdraw their money. Legal & General and F&C Investments have also cut the value of their UK property funds, as the industry seeks to stem a tide of redemption requests
Do you hold commercial property in your portfolio? Have you recently reviewed your portfolio in light of the current market?