Real Estate  

Regulatory uncertainty prompts fund house to explore property fund sale

The longest period of suspension came in 2020, as real estate valuers enacted ‘valuation uncertainty’ clauses on the funds as they were unable to adequately value the properties held by the funds due to the pandemic. 

Investors hurried for the exit, and the funds were at risk of having to conduct a fire-sale of assets to fulfill these withdrawals. 

Most funds gated for a number of months until the market settled and they were able to build up enough cash reserves to be satisfied that they could fulfill redemption requirements.