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UK property funds face cash crunch: ‘Industry needs a solution fast’

With billions of pounds tied up in commercial property, asset managers will need to rely on substantial cash reserves to pay back those investors wanting a quick exit when funds reopen

UK property funds face cash crunch: ‘Industry needs a solution fast’
Photo: Getty Images

Several of the UK’s largest property funds could struggle to repay investors eyeing a quick exit when they reopen, according to FinancialNews’ analysis of fund documents.

The onset of the pandemic made it impossible to price real estate assets accurately, forcing UK property funds to close to investors. Six months on, some funds are reopening as property valuers become better placed to assess the value of their assets.

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