Three new real estate funds economy hereby establish a “corralito” in Britain – Telam

With these new suspensions, rose to six the number of entities that in less than 48 hours applied this “corralito” in response to increased requests for reimbursement caused by the uncertainty following the victory of “Brexit” in the British referendum on the . EU

on Tuesday did the three large funds M &. G, Standard Life and Aviva, which suspended trading of its securities of real estate, after an invasion of investors who were trying to redeem their cash

in a statement, Standard Life said the decision to suspend the negotiation of this instrument was adopted as a result of the increase in the number of redemption requests received after the outcome of the referendum on the EU.

Meanwhile, the insurer Aviva blocked negotiating your real estate investment fund Aviva Investors Property Trust, worth 1,800 million pounds, due to the lack of liquidity caused by the high number of requests for sale following the uncertainty markets.

the pressure on the commercial real estate sector, which had enjoyed a 40% increase in prices from 2009 to the beginning of this year, came after the pound collapsed again today , trading at $ 1.27, a level last seen in June 1985.

analysts said the pound could fall to $ 1.20 amid warnings of a slowdown in growth UK and the prospect of a cut in the level of interest rates that would apply next week.

Sources consulted by Telam said the reason for this decision is due to fear, even in the case of M & G, that customers request redemption of their capital

“Although the London Stock Exchange currently quoted at its highest in 2016, for financial pride of some colleagues in the City, so. truth is that the “Brexit” is beginning to take victims in all fields, “said economist and broker of the London City, Daniel Alvarez, X Open Hub.

” Leaving aside the corpses politicians, there have been several very important in the last few days, if we look at the currency market weakness of sterling is downright disturbing. Its price below $ 1.30, is at levels we have not seen in the last 30 years, “Alvarez said.

The economist added that the property sector is one of the most volatile and cyclical of any economy. in the case of the UK, high property prices have generated a lot of wealth, especially in London, and an extremely dynamic and speculative market.

Alvarez said the foreseeable less attractive can have the UK in the short term as a world financial center after his decision to leave the European Union (EU), it has generated pessimistic forecasts of falling prices in this sector, mainly due to sales by foreign investors are already seeing these days.

According to the economist, the measures of management, logical to try to calm down, can damage however confidence in their funds and argued that we should not forget that, despite the dynamism of British real estate business and especially London, invest in “real estate” is always less liquid than investing in securities assets, and investors in times of uncertainty should always flee illiquid assets “.

for this reason, a possible recession in the UK, or a bad negotiating their exit from the EU, could lead to a major crisis in a sector that has been, next to the business, one of the engines British economic activity in recent years, concluded the specialist.