Three UK fund managers have imposed redemption limits on some property funds due to ongoing volatility in markets.
According to the FT, Schroders, Columbia Threadneedle and BlackRock have all had to restrict withdrawals from their funds as liquidity tightens across property funds once again.
Columbia Threadneedle has shifted from daily to monthly redemptions across its £2.3bn Threadneedle Pensions Pooled Property fund, citing "liquidity constraints resulting from the recent market volatility and a subsequent increase in redemption requests".
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BlackRock's UK Property fund has imposed unknown additional redemption restrictions on its £3.5bn AUM, after receiving significant withdrawal requests in Q2.
Schroders Capital UK Real Estate also saw increased withdrawals in Q2, with £65.3m of its £2.7bn AUM requested in Q2 and originally due on 3 October.
However, the fund manager has said it would return £7.8m of the request for now, with the remaining balance deferred until "on or before" 3 July 2022, utilising a clause that allows it to postpone redemption requests up to 24 months.
"It is expected that the deferred redemptions will be paid following successful completion of future asset disposals," Schroders said.
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This marks the third occasion in five years that funds have struggled to return investor cash, with 2016 and 2020 each seeing widespread suspensions across the open-ended property market, although for now, all funds remain open.
Michael White, head of UK property at Canada Life Asset Management, said that while the commercial investment market had been suffering from a "summer period of inactivity", the value correction would give rise to a buying opportunity.
"With finance rates and the cost of debt rising rapidly the commercial investment market is having an extended summer period of inactivity," he explained. "Transaction volumes have dropped off a cliff, and there was little market evidence for valuers to move valuation yields with any certainty in September.
"We have found that occupational markets have remained relatively robust with continued take up of space, mostly notably for prime accommodation, across most of the main commercial and alternative sectors.
"The success of the current fiscal plan to reduce inflation and boost GDP will clearly determine how far commercial capital values will fall."
Columbia Threadneedle, BlackRock and Schroders have been approached for comment.
