UK property fund panic 'looks a lot like the sell-off in 2008'

UK property funds with about £18bn (€21bn) of assets froze withdrawals as investors sought to dump real estate holdings in the aftermath of Britain’s vote to leave the EU.

“It’s reminiscent of Bear Stearns’ subprime funds before the Lehman debacle,” Bill Gross, a fund manager at Janus Capital said.

“The system doesn’t allow liquidity to flow into the proper places. If these property funds are just one indication, perhaps there will be others to follow. I think it’s something to worry about,” he said.