Investors eye beaten-up property sector

Buying opportunities within closed-ended sector?

Investors are starting to hone in on attractive entry points into the beleaguered property sector, especially among more specialist and less-London centric closed-ended vehicles, after a "savage de-rating" following the Brexit vote and a raft of open-ended fund suspensions.

Outflows from the property sector had already started to build before the EU referendum on 23 June, but the rush for the exit snowballed after the leave vote was announced. Dealing on a number of open-ended property funds was suspended to protect existing investors, while closed-ended property vehicles have also been impacted. Discounts widened to an average of 14% after the referendum, although a number of larger funds were trading in excess of a 20% discount, according to Numis Securities. However, stresses on the wider sector are now creating opportunities, especially among product...