Blocks on redemptions by UK property funds may point to an uncleared UK commercial property market – with delayed supply risking rapidly reducing prices in the future. This may put pressure on UK CMBS issuers – both with respect to covenants and future refinancing. There is a strong argument to look at refinancing early – and reducing worst-case scenario risk.

BlackRock has further extended delays on redemptions to its £3.5bn UK property fund. Columbia, M&G, Schroders, Threadneedle and other UK property fund managers have also restricted withdrawals recently.