Crunch conditions wreaking havoc on UK property securities

UK property securities funds are reporting disastrous credit crunch fallout with some losing almost h...

UK property securities funds are reporting disastrous credit crunch fallout with some losing almost half their value over the last year. The funds were seen as less risky than direct property vehicles as they have equity-like liquidity where bricks and mortar funds often apply redemption restrictions. But bricks and mortar funds have actually lost less money than the UK-focused property securities vehicles since the credit crunch took hold. New Star’s bricks and mortar UK Property fund reports a 21.5% loss and Swip Property is down 18.2%. Meanwhile, Aberdeen Property Share, with 83% ...