Brexit and regulation spell trouble for property funds

But he said he advocated closed-ended structures for investing in property. He explained: "I remain a fan of the closed-ended structure for the main reason that every investment decision is driven by what I believe is in shareholder’s best interest."

This would help shore up the investment trust in the event of an economic downturn - a scenario presented as a result of a no-deal or poor-deal Brexit.

Mr Baggaley said: "I don’t need to either hoard cash or sell assets in a poor market to meet redemptions, or invest in an expensive market because of inflows. It also means I can hold my best assets (the most liquid) through difficult times, in order to gain the greatest benefit when the market picks up."

He pointed to recent research from analysts Canaccord, which highlighted the difference between closed-ended investment trusts and open-ended property funds. 

It said: "Over 10 years, the average annualised net asset value and shareholder total returns are 7 per cent and 10.9 per cent respectively , versus 4.3 per cent for UK commercial property open-ended funds."

When it came to Brexit, Canaccord had a mixed view on the possible outlook. Analyst Alan Brierley of Canaccord added: "As far as Brexit is concerned, real estate is correlated to the economy, so an outcome that sees lower GDP will have an adverse effect on returns.

"At a more granular level, a poor Brexit with a slump in sterling could have an adverse impact on the retail sector but with greater capital inflows supporting office and logistics pricing from overseas buyers.

"The industrial sector could benefit from a poorer Brexit as firms need to store greater inventories to combat boarder delays. Although Brexit will have an impact on capital returns over the short to medium term, well-let, good quality properties will continue to provide an attractive income return."