| Sept 15
Sept 15 UK commercial property values fell less
sharply in August than the month before, a closely-watched index
showed on Thursday, suggesting concerns about the impact of
Britain's vote to leave the European Union on the sector may be
Overall property values for UK commercial assets fell 0.65
percent year-on-year in August, the IPD real estate index,
compiled by MSCI, showed on Thursday.
This compared with a 2.8 percent fall in July, which was the
biggest slide since March 2009 and reflected a sharp drop in
market confidence after the June 23 vote.
The UK property market was a focal point for investor
uncertainty in the days after the referendum, and at one point
more than 18 billion pounds ($24 billion) worth of commercial
property funds were suspended from trading.
Fears that firms might move jobs to Europe, particularly in
financial services, and return leased office space, along with
concerns of a slowdown in retail spending, hit investment in the
sector and demand for properties.
However, with the market showing signs of settling down,
some of the suspended retail property funds have reopened.
Fund manager Columbia Threadneedle said on Monday it planned
to lift the suspension in trading of its UK retail property
fund, which would make it the third to do so.
MSCI data showed on Thursday that total returns from UK
commercial property slipped 0.1 percent in August, compared with
a drop of 2.4 percent in July.
The IPD real estate index is one of Britain's most widely
watched commercial real estate data surveys, and tracks all
sectors including retail and office property.
The August index was based on data from 3,307 property
investments with a total capital value of 46.4 billion pounds,
($1 = 0.7583 pounds)
(Reporting by Esha Vaish in Bengaluru; Editing by Mark Potter)