The amount of money withdrawn from UK unlisted pooled property funds has risen to a level not seen since the beginning of 2009.
According to the Association of Real Estate Funds (AREF), net capital flows for pooled property funds fell into negative territory in the third quarter of this year, coming in at -£10m.
That is the biggest quarterly outflow recorded since the first quarter of 2009 and well below the quarterly average inflow of £248m for the previous 12 months.
Outflows increased to £481m, up from £316m in the previous quarter.
New money raised in the quarter totalled £471m, down from the quarterly average of £615m for the previous 12 months.
AREF chief executive John Cartwright said: “Despite the increase in redemptions, net capital flows for UK unlisted pooled property funds remained stable in quarter three, if slightly negative.
“New money raised was positive at £471m, showing investors’ continuing interest in property as an asset class.”
bridget.o’connell@estatesgazette.com
