Frozen funds start to thaw

Following the post-EU-referendum panic, the commercial property market seems to be stabilising.

Following the post-EU-referendum panic, the commercial property market seems to be stabilising. Legal & General (L&G) last Friday announced a reduction of the fair value adjustment to its property fund from -15% to -10%.

In other words, sellers will take a less drastic hit than before. Laith Khalaf at Hargreaves Lansdown notes that L&G's reduction in the fair value adjustment of its fund "isn't an indication of a reversal of flows into the property fund sector", but rather a "moderation of the mark down" made to the underlying portfolio in the aftermath of the vote. Even so, the fund price rose by 7% on the news.

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