Two more property funds have closed the gates to prevent a fire sale of assets.
Legal & General is deferring withdrawals from its £3.7bn Managed Property Fund, while M&G is doing the same for its £4.6bn Secured Property Income Fund.
Both said the changes to funds aimed at institutional investors were designed to protect their clients, by keeping working capital at sufficient levels and allowing it time to pursue orderly sales of assets.
Last month, property funds run by Columbia Threadneedle, Schroders, CBRE Investment Management and BlackRock became subject to redemption deferrals, which in total now apply to funds valued at £17bn.
But the run on property funds is a clear indication that institutional investors are taking a more bearish view of commercial property as rates rise and recession looms.
The withdrawals were exacerbated last month as pension funds raised emergency cash to meet collateral calls following the disastrous mini-Budget.
