Property funds are dumping assets valued at more than £1bn on to the London market as pressure mounts to meet redemption requests.
But agents have warned that they will have to accept big discounts in order to sell.
Funds including vehicles managed by Schroders, CBRE Investment Management, Legal & General Investment Management, M&G and Abrdn, are marketing at least 18 commercial assets collectively priced at about £1bn in the capital, according to agents.
Funds have been under increasing pressure to meet investor redemption requests from institutions, including pension funds, which are dealing with the fallout from former chancellor Kwasi Kwarteng’s mini-Budget in September.
Investors pulled £184m in October from a sample of retail and institutional property funds tracked by Calastone, the largest global fund trading provider, more than twice the £89m pulled from the vehicles in September.
M&G and LGIM are the latest funds to defer withdrawals this week on two institutional property funds, joining Schroders, Columbia Threadneedle and BlackRock in limiting redemptions.
