Capital gains taxable is payable from 01/01/2019 on commercial property gains (whether taken or not) for non UK beneficial owners including people, businesses and overseas pensions and investment funds.
The driver also worrying property fund investors is Brexit, with declining demand for UK commercial space if we move into economic slowdown or recession.
M&G (Prudential) has suspended trading the commercial property fund with significant cash out flows affecting liquidity. This has prompted many investors to think about whether they should 'head for the door' and switch out of commercial property.
Leading players like Legal & General's 'super tanker' commercial property fund and Royal London have already tried to reassure investors that they have significant amounts of cash reserves in the hundreds of millions £.
The choice is yours - remain and ride out any volatility. Switch out if you are nervous or if you are invested in a property fund that has cash reserves, may be they have positioned themselves to take advantage of market falls to buy cheap property bargains and prosper long term?