El-Erian Recommends U.K. Real Estate Wager, With Patience

  • ‘Let the opportunities come to you,’ Allianz executive says
  • Sector faces forced deleveraging after overpromising liquidity

Allianz SE’s Mohamed El-Erian said that the forced deleveraging of U.K. commercial properties after the Brexit vote may spur opportunities for investors.

“If you’re a patient investor, with a stomach for mark-to-market volatility and quasi-permanent capital, that is going to be a very attractive area,” El-Erian said in an interview Friday with Bloomberg Television. “But wait, let the opportunities come to you.”

Last month’s decision by U.K. voters to leave the European Union has triggered concern real estate values in that nation will tumble. U.K. property funds have been freezingwithdrawals as investors seek to exit holdings of real estate and reduce exposure to the sector. Aberdeen Fund Managers Ltd. cut the value of a property fund 17 percent this week, while also suspending redemptions…

El-Erian Recommends U.K. Real Estate Wager, With Patience

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