Property  

All property funds expected to gate ‘within hours’ as £11bn trapped

It is not just the open-ended funds which have taken a hit from the economic uncertainty riddling the property market.

The BMO Commercial Property Trust, a closed-ended investment vehicle, is currently trading at a 53 per cent discount, while Standard Life’s Investments Property Income and Schroder’s Real Estate Investment trusts are at an 18.5 and 28 per cent discount respectively.

Annabel Brodie-Smith, communications director of the Association of Investment Companies, said: “Clearly, the share prices of property investment companies will be affected by the current market sentiment.”

But Ms Brodie-Smith added that, unlike open-ended funds, investment companies’ shares were traded on the stock exchange so as long as the stock exchange was open, investors would be able to trade.

imogen.tew@ft.com

What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.