Capital flows leap for unlisted property vehicles

Capital poured into unlisted property funds in the final quarter of 2009 at five times the rate of Q3 2009. Figures from The Association of Real Estate Funds showed the highest-ever quarterly commitment by investors, of £3.2bn, or £2.9bn after redemptions of £300m, compared with a net £400m in Q3 2009.

More than half of the total, £1.9bn, was pumped into the seven AREF authorised property unit trusts open to retail investors; the net figure was only slightly lower, at £1.8bn net, after just £100m of redemptions. The capital invested in all funds is nearly double the previous peak, of £1.7bn, which was invested in one quarter during 2006.