ECB Warns of Risks Posed By €1 Trillion Real Estate Funds

The net asset value of the real estate investment funds more than tripled to more than €1 trillion ($1.1 trillion) in the past 10 years, boosting their interdependence with property markets, the ECB said Monday in its Macroprudential Bulletin. 

It warned of a mismatch as investors have frequent opportunities to withdraw money, while the assets themselves are quite illiquid. That can make the vehicles vulnerable to runs like those that reverberated through the financial system recently. 

Alexander Weber Bloomberg 3 april 2023

https://www.bloomberg.com/news/articles/2023-04-03/ecb-warns-of-risks-posed-by-1-trillion-real-estate-funds




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