The head of the European Real Estate Association - which represents almost half a trillion in European real estate equities - has warned the UK's financial services regulator that it risks 'misleading investors' into believing that there are potential issues with all property investments.
Dominique Moerenhout, CEO, European Public Real Estate Association (EPRA) has hit out following the Financial Conduct Authority's (FCA) proposal for fund redemption notice periods announced, as reported, earlier this week.
"The industry must take care to ensure that this episode does not mislead investors into thinking there is a problem with property," said Moerenhout.
We are in danger of souring the taste of property investments for individual and institutional investors, completely," Dominique Moerenhout, CEO, EPRA
"The liquidity issue is a problem with specific funds and how they are structured, yet we are in danger of souring the taste of property investments for individual and institutional investors, completely."
Moerenhout points that there are "other avenues" through which investing in property is "highly liquid", such as listed real estate vehicles and exchange traded funds, which "give investors ready access to their capital while exposing them to extremely high-quality property and diversified assets".,
"It is the role of the fund and wealth industry to make sure that these investments are clearly understood and more widely used in order to safeguard investors' right to access their capital," he concluded.