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...
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