UK property funds slash high street exposure during difficult 18 months

Bricks and mortar retail divestment accelerates

Mike Sheen
clock • 4 min read

Open-ended UK property funds have been cutting their exposure to the high street over the last 18 months, as the coronavirus pandemic saw forced business closures lead to the collapse of rental income and falling asset values.

The pandemic has driven fund managers to renegotiate rents in some cases and has accelerated divestment from subsectors already facing longer-term issues. An estimated £6.4bn of rent has gone unpaid as a result of Covid-related business closures, according to the FT, with the ban on commercial property evictions set to remain in place until March next year. Hot property: Doors open for investors as US property market is booming again Funds in the IA UK Direct Property sector have reduced their exposure to retail property during 2021, with an average allocation of 5.9% at the en...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week