Investors Seek to Pull $20 Billion From Core Real Estate Funds

Submitted by Fatherthinger t3_10j9pwj in wallstreetbets

Some of the biggest investors in US commercial real estate are looking to cash in before property values slide further.

A group of property funds for institutional investors ended last year with $20 billion in withdrawal requests, the biggest waiting line since the Great Recession, according to IDR Investment Management, which tracks an index of the open-end diversified core equity funds.

“It’s like the nightclub where everybody lines up to get in and then lines up to leave when it closes,” John Murray, head of global private commercial real estate at Pacific Investment Management Co., said in an interview.

Institutional investors sought to cut their exposure to some of the biggest funds at managers including JPMorgan Chase & Co., Morgan Stanley and Prudential Financial Inc., according to people familiar with the matter who asked not to be identified citing private information.

Read more: https://www.reddit.com/user/Fatherthinger/comments/10j9lyn/investors_seek_to_pull_20_billion_from_core_real/

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VisualMod t1_j5j44ra wrote

>This is interesting news. It seems that some of the biggest investors in US commercial real estate are looking to cash out before property values slide further. This could have a significant impact on the market and we will be monitoring it closely.

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downboat t1_j5j7dyy wrote

PUTs on REITs then?

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emielbo2 t1_j5l7gca wrote

REITs are already down a lot as they are traded freely. Real estate funds often base their NAV on valuations from valuators which lag the market and as a result their NAVs are likely materially overstated, especially when compared to the implied values of listed REITs.

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BTCETHXMRADA t1_j5jaay1 wrote

won't it further impact the price? It will just accelerate the effect if you think about it

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Smart_Character1880 t1_j5jdosn wrote

Yes, but it’s selfish thinking on them, which isn’t unusual. The quicker you are out the door, the less pain inflicted in their minds.

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myne t1_j5jke9i wrote

He who panics first panics best.

Probably why so many ceos are pushing for the minions to return to the office.

Just get them back long enough to unwind the positions to retail bagholders, and then about face with some bs about productivity synergies. Throw in cloud a few times for good measure. Cloud workers.

Actually, fuck cloud. This needs a new term. The Nebula. Nebulous workforce. The ultimate in galactic workforce flexibility and productivity. Where every star employee and speck of dust can shine like Lucy in the sky.

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greatmagnus1 t1_j5kbaa3 wrote

Forcing people to come back is a way to get them to quit without having to do layoffs w/ severance IMO.

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VisualMod t1_j5j44gh wrote

User Report
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Account Age 4 years [^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.) [^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.)

^^Discord ^^BanBets ^^VoteBot ^^FAQ ^^Leaderboard ^^- ^^Keep_VM_Alive >TL;DR: Big investors are withdrawing their money from commercial real estate funds, because they think property values are going to drop.

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RODAMI t1_j5koumq wrote

WeWork has entered the chat. Cheap offices?

Do people have no imagination of what to do with empty office bindings?

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Legitimate-Source-61 t1_j5ndqm5 wrote

They might lock in the funds if they could as real estate is illiquid. I believe this has happened before. Why are they reporting this anyway, they want to spook people out?

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