The amount of institutional capital seeking to exit open-ended core real estate funds in the US has more than doubled since the beginning of the year to $14.4bn (€13bn), according to a report from the Ohio Public Employees Retirement System.
The report, produced by the pension fund’s real estate consultant The Townsend Group, said redemption queues were expected to continue to lengthen in the coming months as real estate values fell.
As reported earlier this month, some funds have suspended redemptions.
Townsend said some investors were requesting redemptions due to the denominator effect, where declines in listed markets had pushed up their exposure to private markets, while others were seeking to avoid future capital value declines in the real estate markets.
Townsend declined a request for further comment.
According to NCREIF, $19.1bn was redeemed from funds in NFI-ODCE index during the 12 months to the end of March 2020. Inflows of $17.9bn meant net outflows over the period were $1.2bn.
The UBS Trumbull Property Fund is among funds with the largest queues; it had $7bn of redemption requests as of February this year.
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