John K. Defterios, Anchor and Emerging Markets Editor, CNN International speaks during the 2012 of the World Economic Forum at the congress centre in Davos, Switzerland, January 27, 2012. (Wikipedia/Michael Wuertenberg)
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Uncertainty remains pervasive in the U.K. financial markets and that has knocked the legs from under the commercial property sector.In a span of five days of trading, the market witnessed more than a handful of sizable asset managers freeze funds with exposure to the commercial real estate market. This is a manifestation of the sharp correction of the British pound, which plummeted from a pre-referendum high of 1.50 against the dollar down to a 31-year low.The worry for property investors is that while a 20 cent correction is significant, the percentage loss is less than half of what the world witnessed during the 1992-93 exchange rate mechanism currency crisis or the 2008-2010 global banking crisis.The funds are heavily exposed to offices and other prime commercial property in the U.K. that can't be unloaded quickly enough when nervous investors want their money back.What investors in the U.K. want to hear is if whether what is arguably the world's most international financial center will remain open to the outside world.
FOLLOW THIS ARTICLE