Many of the larger international property funds with a UK focus are currently limiting withdrawals and extending restrictions that were initiated in autumn 2022, as investors like pension funds make moves to pull back from the segment.
Individual UK consumers and companies interested in property as an asset class often look to wealth managers for investment advice in Chester, London, and other key cities across the country. As independent financial advisors (IFAs), wealth managers can offer specialist guidance on every type of asset class, from stocks and bonds to property, and explain the options open to investors keen to establish a new portfolio.
An example of this activity is New York- headquartered investment giant BlackRock, which is deferring meeting any third-quarter requests made for redemptions from a property fund that would usually have been paid out at the close of December.
The sale of real estate among other illiquid assets is well-known for being time-consuming. To this end, redemption delays can be useful in helping property funds sidestep fire sales of property assets. Experts have commented that UK property fund restrictions are set to continue until interest rates not only stabilise but start to reverse.
The value of many kinds of real-estate holdings have not been marked down as swiftly as more liquid holdings. As a result, many investors now possess overly large allocations and are reassessing their investment portfolios and attempting to pull out and scale back the illiquid asset allocations that are far more difficult and time-consuming to sell.
