St James’s Place closes £1.8bn property funds and exits market

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Investors ‘increasingly cautious’ about the asset class

Wealth manager St James’s Place is closing its £1.8bn property funds and exiting the sector after two decades due to “a challenging period”, as some investment experts believe the market for open-ended property funds is “over”. The UK’s largest retail wealth group said it will wind down three funds comprising its property unit trust, pension and life products.

Some investment experts believe the market for open-ended funds that invest directly in commercial property is coming to an end, as more products close. “There has long been a debate: what is the right structure for holding property? The days for open-ended property funds are over,” said Darius McDermott, managing director of Chelsea Financial Services.

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