The Bank of England was warned that there could be an exodus of investors from UK commercial property funds following the EU referendum.
Minutes from the meeting of the Bank’s Financial Policy Committee show that it was waned by the that funds might be suspended.
And suspended they were with Columbia Threadneedle, M&G, Standard Life, Canada Life, Henderson Global and Aberdeen Asset Management have all putting the brakes om withdrawals.
The minutes said: “The FPC was briefed by the Financial Conduct Authority on the extent of outflows from these funds and on the possibility that funds could suspend redemptions in the near term.”
In total around £18.2bn of funds were suspended.
Around £35bn, approximately 7% of the total investment in UK commercial property, is invested in these property funds.