The shadow of the 1990s UK property crash is looming over the industry as deal volumes collapse to a third of their previous level and property funds take further drastic steps to prevent a liquidity crisis. Deutsche Bank was the latest fund manager to alarm the sector as it told investors in its RREEF UK core real estate funds – worth £1.3bn – they would have to wait up to a year to sell units. Triton, a £2.3bn property unit trust run by UBS, and Morley’s £1bn pooled pension property fund have also invoked 12-month waiting periods. The credit squeeze has further damaged sentiment in a sector which was already suffered consistent falls in property share prices since the New Year. The crisis of confidence in unlisted UK property funds comes amid slumping deal volumes in the underlying market as buyers struggle to get their hands on debt.

This entry was posted by Gwen Robinson on Tuesday, December 4th, 2007 at 5:08 and is filed under Capital markets. Tagged with deutsche bank, morley, Triton. Edit this entry.